PSU Basketball (Men's) receives a lot of revenue from its B10 revenue sharing - just like every other B10 program. That comes out to around $10 million per year.
Penn State basketball generates essentially nothing on its own - generally between $1/2 million and $1 million in ticket revenues per year - and that figure barely twitches when PSU wins a few more games, or loses a few more games, or how much they spend (including things like paying coaches) in doing so.
You can find that information for each year here:
2021-22 NCAA Financial Report (PDF) - Penn State Athletics (gopsusports.com)
As long as PSU Basketball doesn't "spend away" the $10 million welfare check, they show a "profit"
Every dollar they do spend, for all intents and purposes - and this is, I believe, the gist of Grim's post - only burns another dollar of the welfare check, without generating a new dollar of revenue. This, we have seen, in the past. That as PSU spends more on basketball (including the last two years with the big $ increase going to Shrewsberry) it doesn't generate new revenues equal to the spend (not even close to it).
So, whatever the reasons may be to spend more - and there may be several reasonable non-financial arguments there (or maybe not) the data and the history strongly indicate that - as Grim indicated - "spending more" is a clear loser from a financial standpoint.