Don't confuse a school choosing not to do it, with a school's ability to do it if the school chooses.
An absurd example: every Ivy could do it with ease; their business models choose not to. Northwestern and others, likewise.
Every major flagship has levers it could pull to fund it - if it chooses. Don't tell me that Texas couldn't muster whatever it needs.
As Abono pointed out, the money spent drives lots of ancillary actions - increased applications, high visibility (including internationally [think basketball]), larger TV contracts for a league, etc. So, this a rational business decision which, if it meets the schools' goals, is successful.
These are voluntary decisions by schools to not participate. And, since success begets further success, voluntarily choosing not to play in the same sandbox, allows a huge competitive gap to emerge; which then compounds.
Absolutely it effects kid's decisions on when to go (officially) pro. So what? The kid gets a semblance on an education, gets developed by a staff dedicated to their needs including nutrition, psychological help, physical training, positive reinforcement on a daily basis, etc. (anyone who had a kid trying to eat properly, get psychological help, physical training, positive reinforcement and the rest in MILB, is nodding).
For future pro-players, it's a huge win-win.
Do I agree with the absurd money being thrown around? Absolutely not; but once the rules are set and the school decides on the priorities, then the coach who executes according to plan will be successful - and wildly successful financially. (All the more to go get the highest quality education possible - IMO.)
If I were a HS player trying to navigate the new world - and to whom education was not the overriding priority - I'd start with a school which couldn't play in the big sandbox. I'd pick the school where (a) playing time was (hopefully) max, (b) development was the best where I'd get playing time. Upon a successful season, I'd market myself up the ladder. I would not go to a school trying to build itself out of the portal.
It's MILB without being bound to a club, with a one year contract, where everyone understands that the player is a free agent annually.
Don't blame the programs who were the first movers; they peered into the future and moved accordingly.
