Believe it.
For non-NY6 Bowls, Penn State (and many other programs, I would expect) typically lose money - or, at best, about break-even.
When Penn State went to the bowl against Kentucky (I forget which one it was, but it was the last Penn State non-NY6 bowl. Was that the Outback?), their cut of the payout, for their expenses, (as determined by the Big Ten - based on whatever formula they use - which is higher for " bigger" bowl games) was $2.4 Million. Their actual expenses were $2.8 Million (plus another $700,000 in bonuses for Franklin and staff)
Now, the remainder of the payout from the bowl went to the Big Ten conference kitty - to be divided among the teams and the league office (I believe the league office gets a share, but I could be mistaken). I don't know what that payout, in total, was - but if we say it was $5 million, just as a for instance, that would mean $2.6 million ($5 million, less Penn State's $2.4 expense allowance) went into the conference pool, and each team would have gotten about $150,000.
So, financially, Penn State would have been $400,000 better off ($1.1 Million, if you count the "Franklin Bonuses") to stay home, and not go to the bowl, and let someone else go in their place (that, obviously, wouldn't be a realistic option). That is not atypical - in fact, it is the norm.