From my vantage point on Saturday evening, ASU ran a route with one receiver towards the sideline and Leavitt threw the ball to that sideline and way into the stands. It seems that the officials generally give a very loose interpretation to a receiver being in the area. I've heard some people say that the ball landing in the stands is by definition not in the area but I haven't seen where that is laid out in the rules.
And I don't blame the officials not making another controversial call (in addition to adding a second) while surrounded by a several thousand ASU fans.