The Big Ten will subtract an estimated total of $13 million in league bowl revenue shares from Penn State, or about $3.25 million from 2012 through 2015.
The Big Ten will not remove Penn State from Big Ten play, which was an option available in this case, or consider realignment of the conference with two teams ineligible for the 2012 football championship in Ohio State and Penn State.
"We have not discussed that," said Jim Delany, Big Ten commissioner, on a conference call Monday. "You never say never. But my inclination is, with the leadership in place ... they're looking to the future. They all understood serious sanctions were possible. I don't think we have any plans to realign teams and institutions. Our structure is set for decades and not years."
The conference announced the forfeiture of league bowl revenue Penn State would've received will instead be donated to Big Ten regional charities dedicated to the protection of children.
"Those victims and their plight remain at the center of our thoughts," said Iowa president Sally Mason, chairman of Big Ten council of Presidents and Chancellors.
"We had discussions ... the full range of opportunities in terms of what the conference might or should do in terms of Penn State," Mason said. "Everything was on the table. Everything was discussed."
Mason said the council did not have support or any movement to dismiss Penn State from the conference.
Penn State will not be eligible for the conference title game for four years, confirming the NCAA postseason ban which also includes bowl games.
"There's pain, there's frustration," Delany said, noting that a 'concentration of power' was at play at Penn State. "We're hoping that out of this we'll get better."
NCAA president Dr. Mark Emmert earlier Monday announced sanctions including a $60 million fine, reduction in scholarships and the establishment of several compliance-based programs designed to "establish a change in culture" at Penn State.
Penn State held a meeting for players Monday morning following Emmert's nationally televised press conference. Players who are eligible won't be restricted by another institution's scholarship limits if they choose to transfer, nor will they have to sit out a season as is customary for players transferring from one FBS program to another.
Delany said the Big Ten's initial thought is to not limit the ability of players to transfer to another Big Ten school at this time.
"We had a discussion of that issue (Sunday) among the presidents. Their first thought on it -- they're students first and athletes second," Delany said regarding potential internal conference transfers from Penn State to other Big Ten schools. "Their interests do need to be prioritized. We'll take a very close look at NCAA declarations here on the ability to transfer. ... On first blush, our orientation would be to support as much freedom as possible."