It is a myth that this occurs. At least the way you frame it. We will find out soon, as HS athletes will be able to jump direct to the G league. Most programs lose money, especially at football. UConn isn't profiting, it is subsidizing those athletes. That's the reality.
How about Alabama football? Yes it makes money. And Jalen Hurts can leave Alabama and go to Oklahoma, and the Alabama fans...they don't care and keep rooting for Alabama. Joe Burrow can leave Ohio State and go to LSU and...nobody at Ohio State cares, they root for Ohio State. Were URI fans rooting for UConn this year because Martin brought so much value?
The schools have massive alumni followings along with those who have state or local pride in those teams and have many decades building their brands. That's why they have fans, that's why the make money. Are the players "fairly compensated", most are probably overcompensated. Certainly being admitted to universities you may not otherwise qualify to attend, at no cost, is a form of compensation right? Are the absolute star players, the best of the best, worth more than that on an open market? Yes. But the women's field hockey team at UConn, which is awesome, is financially worth close to zero. So you want to what? End scholarships for women's sports? Not provide them fields, coaches and uniforms? Because that's what the result would be.