talent will spread just like it does today. Not every future NFL player can play for Alabama.
Contrarian opinion: This might actually hurt recruiting for UCLA/USC. What if kids don't want to travel to Rutgers or Northwestern? Not every B1G game will be against Ohio State and Michigan. You think the Pullman, WA trip is bad... wait until you play Minnesota in November... or Wisconsin... or Iowa... Or Indiana.... I'd love to be a Pac10+? recruiter for another Pac school. Imagine that sales pitch.
Add to the fact that every home game in LA will be filled with opposing teams fans just looking to get out of MN for a trip to see the sun.