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It's really not inconceivable that the football team just simply wasn't making money. There are lots of expenses: Coaches/staff, facilities, travel, maintenance, equipment, recruiting.
From my experience, Hofstra never had good attendance. The stadium was pretty small and rarely full. And I don't know of any lucrative TV deals from D-1AA.
I'm sure a college program like that is largely funded by alumni donations, and just about every industry that relies on charity has struggled lately.
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