The 1979 fiasco was as follows: RU owned St. Johns that year. St. Johns' best player was their center, McKoy, who was a fine player. But James Bailey simply owned McKoy (as he pretty much owned any match-up his last 3 seasons at RU). RU was up about 9 points with 11 minutes to go - or something like that. McKoy picked up his 4th foul, and had to go to the bench. Instead of putting the pedal to the metal, and kicking St. Johns while they were down 9, and without their best player, Tom Young inexplicably had RU kill clock, slowing the game down ... with 11 minutes to go. And the RU players handled it badly, and let St. Johns actually close the gap to about 3-4 points with about 3-4 minutes to go ... until McKoy was able to come back into the game. By then St. Johns had all the momentum, and RU folded, to lose a close game.
Though Penn was the miracle team that year, and beat St. Johns in the next game to make the Final Four (and earned the right to face Michigan State and Magic Johnson), I believe there is no way Penn would have beaten RU - RU was a much worse MATCH UP for Penn than was St. Johns. RU would have been able to control Penn's best player, Tony Price, through a combination fo Anderson and Troy, both simply outstanding defensive players.
And then you would have had a Rutgers-MSU match-up, with 2 1st team All American players facing off in Bailey and Magic (though Abdel Anderson would have covered Magic, not Bailey). I do not think RU would have beaten MSU, but it would have been a much better match up than MSU-Penn. Many people have forgotten that RU BEAT Indiana State in the NIT the prior year, when Bird was a Junior ... Indiana St. was essentially a 2-person team: Bird and Nicks. RU beat them by putting Anderson on Bird, without help, and shutting down EVERY OTHER PLAYER ... Bird scored something like 33 points, though he had to work for it. RU won.
I didn't remember those specifics. I only remembered the ending. We had a 1 point lead, Bailey rejected a McKoy shot, but it went right back to him and JB was out of place, so McKoy got an easy layup to put SJU ahead. We still had a few seconds but, I think Griffin threw the inbounds pass away and we never got a shot off.