You are forgetting about the sixth column, which was the column of players the previous rule was designed to address.
In this column, you have the players, mostly transfers that are good enough to play for you, but there isn’t room on the roster. But you don’t want your competition hiring them and you don’t want a lower school improving their play by having access to this player. In this column, there are also under recognized talent out of HS but who excelled there, say Baker Mayfield, your All State player and proven winner from a big program without offers. In this column neither type of player is ever given an opportunity to compete, is listed as a walk-on, or maybe not even that, and is paid a small amount to not play but who never has the chance to develop his talents. But the money is just enough for a poor kid to forfeit his talents to continue in school since he gets no help from family. Not only did it rob the players of their potential back in the day, it hurt the smaller teams like Tulsa who couldn’t attract players that could compete with the larger schools. Teams like OU would have a dorm full of Texas All-State QBs and a few former starting QBs last season at regional powers like TCU, Tulsa, Memphis. All told they would/could be the starter at OU next year, but in reality they are just going to be paid a small amount to sit, so they don’t end up on the Texas roster and turn into Vince Young one to three years from now, or if you are OSU, you take a portion of your tv money and you pay these kids so the don’t go to TU and beat them in their annual Bank of Oklahoma sponsored OOC game and disturb the recruiting balance. The player may or may not get an actual education and will leave the school with no chance at the pro dream that have been forced fed since birth.
And if Tulsa only cared about the revenue stream from football, they would have dropped the program in the early 50’s when it started costing money.
If it does reveal that schools only care about revenue streams, then TU is in trouble because the larger schools with access to larger sums to cover overhead will quickly expand to absorb the revenue stream of small operations like Tulsa.
Stead spent a lot of time on this issue, and was even on an NCAA Commission. In my opinion, the Commission was charged with more than just studying the issue. They were charged with formulating a system where there are roster limits, transaction controls, and a salary cap for an NFL style league with 120 teams with multiple revenue streams they don’t control. No conclusions could be made. He supported players across sports being paid uniform amounts and limited profit sharing for publicity rights with certain categories of players. Costs TU could predict and budget for and compete, while also not tolerating a marketplace where Auburn is telling a booster to build a casino on Indian land for the sole purpose of laundering money to make cash payouts to player’s family members. Players who are never going to play at Auburn and can’t be allowed to play at Georgia Tech or Vanderbilt and embarrass Auburn for the recruiting miss. And that really did happen.