How is it excessive? You just lost two key players you had signed and were counting on near the end of the transfer portal window. That's a pretty big deal when many (maybe most) of the comparable replacements have already signed with their new school. The hometown judge isn't going to rule it's excessive and the home state Supreme Court isn't going to overturn that.
UM didnt lose any money. They lost a linebacker and a lineman. You lose football players all the time, for a variety of reasons.
If UM had known those two were transferring out, they might have sought replacements...but they weren't required to. And who knows if they would have signed anyone better than the current backups?
Plus, there was nothing preventing them from signing someone else even if those guys didn't transfer out. Who couldn't use another linebacker and lineman?
Its all speculative, and they have had 7 months to adjust. I dont see how their damages are that high just because those players changed their minds. Some financial penalty, sure, but not 100% of the value of the contract.
But they will settle, and we'll never know what happened.