They aren't the only school who believes that. If I ran a college program I probably would do similarly if I am presented with only 1 budget for maximizing school spirit at athletics events while ensuring that team gets fulfills all their other duties as students too. While staying coed, UK has been able to make scholarships a real thing because their budget for 'scholarships' isn't thinned out.
As for UofL, their 3 teams along with what they do for gameday are an absolute cluster. It's even said that some of the people that compete with UofL have never cheered a football or basketball while at the school.