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I doubt it happens that way.
Illinois is the most populous state in the big 10, slightly more than Pa. All of the east school states are larger than the #2 west state, Wi.

Not counting Indiana, which has a team in both divisions, the east has a 20 million+ recruiting advantage, not including the other east coast populations like NY, Boston, DC, etc
The overall state population doesn't always translate to recruiting advantages.

Sure, the best players tend to reside in states like Florida, Texas, Ohio, and California. But other states like Louisiana, Georgia, New Jersey, Michigan, etc also produce a lot of really good players.

There are also population areas within states that are recruiting hotbeds- ie Tidewater, Chicagoland, STL metro, etc.

Champaign is 2 hours from Chicago. They could easily become a college football power if they got a decent head coach that could recruit. To a lesser extent same thing with the Gophers. There are a lot of decent prospects that have come out of the Twin Cities area.

If you build a good program you can get players to come no matter what.
States have two distinct advantages for retaining homegrown players. Those who don't feel comfortable traveling a long distance for school. And the walk-ons who provide a good deal of practice depth and occasionally a viable starter. Not many will pay out of state tuition for the chance to get beat up everyday by the scholarship players.
Bigger state, larger pool of better players.
It's no secret that its a program that recruits want to be a part of. Look at the programs Gary Anderson has been a part of. Under Urban Meyer, they ebacme a powerhouse, and he resurrected Florida's program after The Ballcoach left.

The hope here is Anderson is that kind of guy. He Badgers have had enough to win in th BT, but Bielema's efforts still had them short of national prominence. That gap, plus a better coaching philosophy, may be what sets Andrson above Bielema. That's his task at UW. Not to maintain, but to advance.

And now they're scheduling Bama and LSU... The Big Ten is making a statement. They're tired of all the SEC talk.
My fear is that compete with the SEC, the Big Ten will start to cut some corners. While I'd like to see UW and the rest of the Big Ten have the opportunity to play in the BCS national title game, I don't want to do it at the expense of having recruits sent to the highest bidder (Cam Newton) or some of the other stuff that happens in the SEC. I'm not naive enough to think there aren't already some ethical problems in the Big Ten, but the SEC takes it to a whole nother level.

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