Coach Sanders has a good point from a coaches’ perspective but not from an administration’s standpoint. It’s all about negotiations for the Athletic Directors of these programs. They make and sign the deals (not coaches). And you have to remember, There are levels to the payouts that are different for FCS and FBS teams.
Usually P5 FBS teams play and pay FCS teams between $350,000-$500,000.
If you get more than that , then additional negotiations were made. For example, Southern getting $750K from LSU was clutch. More money is coming later on from television revenue. LSU gave McNeese $500K last year.
Every once in a while you get FCS teams who hit the jackpot. Tennessee State will get $1 Million from Notre dame next season. All because the Athletic Director worked out a better negotiation that includes scholarship banquets/fundraisers leading up to the game along with additional TV money from it being on NBC.
Another large payment was FAMU getting $900K from Ohio State in 2015.
When Group of 5 FBS teams (CUSA/Sun Belt) play FCS programs, the FCS teams only get about $250,000 & $350,00. For example, AAMU just got close to $400K from UAB & $350K from TROY in their first two weeks.
When P5 FBS teams (SEC/Big 12) play Group of 5 FBS teams (CUSA, Sun Belt, more money can be allocated for the Group of 5 teams due to agreements made by the larger schools. That’s why all those Sun Belt teams made over $1.2 million this past weekend.