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I tend to disagree on staying at 12

I'm for 16 for this reason: 4 divisions of 4, leading to a two week playoff among the divsion champions where the winner gets the automatic BCS bid. 

It would allow for an easier seperation of powers, and it would also allow for rivalries to exist still (you could still schedule Michigan/Ohio State at the end, for example).  I'm tossing geography out.  I would prefer to see the Big Ten head for the Big East (those teams in parentheses).  I don't like Notre Dame, but they make sense for the conference.

My proposed divisions:

Div. 1

Ohio State, Minnesota, Purdue, and (Rutgers)

Div. 2

Michigan, Michigan State, Indiana, and (West Virginia)

Div. 3

(Notre Dame), Wisconsin, (Pitt), and Iowa

Div. 4

Penn State,  Nebraska, Illinois, and Northwestern

Granted, it's not a perfect model, but it allows for some protection of Ohio State, Michigan, and Penn State while incorporating some other name schools. 

I would propose a 9 game schedule: One time through your division (3 games), one other division completely, and then 1 team from another division (who is not a rival) and 1 rivalry game.  The rivalry game is static and unchanging from year to year and is the last game of the year.  It is also a cross division foe.  Proposed rivalries:

Michigan/Ohio State, Penn State/Pitt, Indiana/Purdue, Wisconsin/Nebraska, Notre Dame/Michigan State, Illinois/Northwestern, Minnesota/Iowa, and Rutgers/West Virginia.

The remainder of the schedule (3-4 games) would be non-conference filler that would no impact on the Big Ten. 

Seeding for playoffs would be based on overall conference record followed by head to head.  Other tie breakers that make sense (common opponent and what not) could be added later.   Top seeds get the home games. 

A perfect model?  No.  However, I think if the Big Ten wants the big money in college football, a two week playoff among division leaders at the end would make a killing.  I don't mind teams not playing each other every year because I'm used to the NFL where the NFC and AFC don't play everyone in the conference every year.  Does that mean that some years a team may catch an easier schedule?  Yeah, but the balance is that they'd still have to get through the playoff to be rewarded for that (unlike a team in the current system that some how avoids Ohio State and Michigan and coasts to a good conference record).

Later.