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EAST LANSING, Mich. — Indiana had a chance to pull off a big upset on the road Saturday, but some late penalties and special teams blunders in the fourth quarter cost them in a big way in a 40-31 loss to Michigan State.

The loss spoiled a terrific return by Indiana quarterback Michael Penix. who looked great in completing more than 80 percent of his passes and 286 yards.

Penix missed two-plus games with a shoulder injury, and he was missed. His return Saturday certainly invigorated the offense. He led Indiana on two long scoring drives in the first half, and looked sharp doing it in answering Michigan State scores each time.

After going three-and-out on their first drive and failing to convert a fourth-down try on their second, Penix led Indiana on a six-play, 70-yard drive to tie the game. A few early Stevie Scott runs of 19 and 7 yards helped get the drive started, and Penix ended with a perfect 26-yard pass to Whop Philyor in the right side of the end zone.

After a Michigan State score, Indiana went 80 yards on 12 plays and senior wide receiver Donovan Hale played a big part in that, making three catches for 51 yards on the drive. Penix, who had hesitated to run at all in the first half, strolled into the end zone after a fake and scored on a 2-yard run to make it 14-all.

Indiana handled the last two minutes of the half poorly, making a special teams blunder that left them with bad field position. After not being able to get a first down, Michigan State, which had used two timeouts to get the ball back with 1:19 lett, quickly scored in less than a minute, with quarterback Brian Lewerke hitting Darrell Stewart Jr.for a 26-yard score to make it 21-14.

Indiana completely dominated time of possession in the third quarter. They opened with a 12-play, 81-yard drive that ended with a Logan Justus 26-yard field goal. Michigan State ran only four plays and then punted and Indiana went on another long drive, this time taking the lead. Penix hit Donovan Hale on a 12-yard strike to give Indiana its first lead.

Another special teams error by Indiana gave Michigan State another break. A long 60-yard punt return by Philyor was called back on a holding penalty, which left Indiana in horrible field position. After a three-and-out and a long MSU return of its own, the Spartans scored in just two plays to regain the lead 28-24 when Lewerke hit tight end Matt Seybert on a 10-yard score.

Indiana looked to have had Michigan State stopped on third down with six minutes to go, but a defensive holding penalty far away from the ball on the other side of the field kept the Spartans’ drive alive. They continued to milk the clock and Matt Coghlin added a 44-yard field goal with 3:34 left to make it 31-24.

Indiana tried to rally late with a lot of long passes but could not connect. They did convert on third down, with Penix finding Hale again, and they he hit Philyor in stride to the 22-yard line. A third Michigan State penalty on the drive, this time roughing the passer, moved the ball to the 11. Penix then hit Philyor again in the right corner of the end zone for a score with exactly 2 minutes left. IU elected to kick the extra point to tie the game.

Michigan State didn't hesitate attacking, with Lewerke hitting Stewart on a 44-yard bomb on first down to the Indiana 31. On the next play, he got free on  run and went 30 yards to the 1. Michigan State opted to run out the clock before trying a field goal, and Coghlin kicked the game winner from 20 yards out with 5 seconds remaining. 

A desperation final play was recovered in the end zone for a Michigan State touchdown to make it 40-31.