2018 Attendance Home Game Average:
RU-4700
UConn -7800
SHU -8400
I looked these numbers up and was surprised RU was so low.
UConn also travels well and will help fill BE arenas.
About 1AA costs. They pay less
In scholarship money, have smaller and cheaper coaching staffs and keepmtravel expensed down. It has to be cheaper than running a Division 1 program. Even though the revenue might be less.
Regarding attendance numbers, it looks like you quoted numbers from the 2017-18 season, not 2018-19. Rutgers attendance increased about 33% in 2018-19. Considering that Rutgers hasn't been to the NCAA tournament in about 25 years, low attendance shouldn't be surprising. But the UConn numbers are surprisingly low for a program only 4 years removed from a National Championship and 2 years removed from a Round of 32 appearance. Despite the recent National Championship, UConn's attendance was lower than Seton Hall, a program that at that point had 2 first-round losses over the previous 10 years.
Regarding your arguments on FCS costs vs FBS costs:
* As noted above, Scholarship money is funny money. It is money the Athletic Department pays to the University. It doesn't really cost the University anything to have an extra 22 students enrolled. The only real cost is room and board, since the schools have to pay for the food and if a football player is sleeping in a room, they can't rent that room to someone else. UConn estimates cost of room and board at $13,000 per year. Let's say it is $20,000, so that is $440,000 per year for the extra 22 full rides.
* There is no requirement that FBS football programs have to pay their coaches more. Most do, because they bring in enough money they can afford to pay coaches more. But UConn can pay their coaches the same as what they want to pay in FCS. They also don't have to hire tons of assistants. So there is no structural difference between the cost of coaching staffs in FCS vs FBS.
* Maybe travel expenses for the team are lower. If UConn puts football in the CAA, their travel is limited to the eastern seaboard, from SC to Maine. UConn spends a little over $2MM per year on football team travel. If they cut that in half, they save $1MM. More realistically, they save $500K.
* The big expense of FBS football is the cost of facilities. But UConn has already spent that. So they can't save that by dropping to FCS.
So at the high end, UConn can save $1 MM to $1.5 MM per year by dropping to FCS. In exchange, they give up $2+ MM per year in ticket revenue, parking, concessions, and donations. Plus they give up FBS bowl revenue, FBS television money. And there is no hope of increasing revenue. And their financial woes just get worse.