Why should someone pay out more than they have to? I sure wouldn't. Would you? Do you willingly pay above market rates for stuff just because you can? Do you give the grocery store $5 for a loaf of bread instead of $3 because you can afford it?
We get 1.4 million for a no-return game, a ****ty WAC team gets 600-800K for a game that may not make TV. I see no reason paying BSU 1mm to show up for a game that will get you on TV is unreasonable. The teams aren't shying away from the cost they are shying away because they think they'll get beat. That should tell you what you need to know about BSU.