Whatever you want to call it, we're talking about the same thing. I'm referring to your original post
"Other conferences don't have
gate sharing agreements and I think the Big Ten would have difficulty with a home venue that seats about 6,500."
That's the sharing agreement that I am talking about. There are minimums that teams must meet for each game (as well as maximums - football has the same type arrangement - see below). They are in place so that there isn't any issue with small arena sizes. As long as PSU writes at least the minimum gate revenue check for every game, the conference can't complain about the size of the arena.
http://businessofcollegesports.com/2011/04/20/big-ten-ticket-revenue/
"Today, the Big Ten shares gate receipts from both football and men’s basketball"