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There are many smaller programs that literally live off these paydays, so yes it does more than cover expenses.It is pretty darn good until you start to spend it. A charter to carry a football team and staff and equipment starts at about $30k/hour. This includes onloading and offloading and airport delays etc. Throw in hotel, ground transportation, security (ever see state troopers on the field with coaches?) and per diem and the cash register does not stop.
Someone at U Mass is a better negotiator, because they are collecting $1.5 million from Florida State.