What I think you and the "they make no profit" people don't understand is that schools basically are designed to spend everything they get. They don't have to do that. They don't have to add the 69th assistant. They don't have to pay their HCs $10 million dollars. They can get rid of some admins. They can stop spending money on facilities on a grand scale. When they are required to pay the players, that expense will come first. Then all the other fluff won't get paid for. It's simply a matter of allocation.
Now, some schools in the G5 won't be able to because there aren't 69 assistants, their facilities aren't all that good, and the HC doesn't get 10 million. They will have an option to run their program under a different model. But the top 50-60 athletic departments can make it happen if they want to. Some easier than others, same as the Yankees v. the Royals.
I don't know if you have ever run a business, but I have for over 35 years. You are the one making this hard. Everyone that matters understands profit, gross revenue, expenses, etc. What you don't seem to understand is that when an expense you can't not pay gets added to your operation, you will find a way to pay for it. Hell, just this January I determined I needed to add a new employee. I added her and then looked around to see what I could cut to help pay for her while she gets up and running where she can generate revenue to cover her costs. Candidly, there is only so much cutting I can do on the expense side so I am going to take a pay cut for 6 months. Long term planning says this a good move. The schools will do the same thing.