To quote your previous post "Well there is another way to look at that, isnt there?". Someone reasonable could argue UConn decided to take a calculated risk that the fallout from giving him nothing would be less burdensome than offering him a smaller amount of money to settle.
I understand you might disagree, and UConn did get a little bad PR early on- but since the first couple of weeks I don't think anyone outside of this state has been keeping up with the headlines of this story. Are there other negative impacts of doing this, sure. Are they worth 5M? 3M? 1M? Would Ollie even take 1M? Why would the school offer after he already tried to dig up all the dirt on them and the damage was already done? That was his leverage, and he played it- instead of dangling it.