That's kind of implying that the higher ups at the U got together in a room and said "nobody will notice if we have a crappy football team now because the Twins and Vikings are here." (rubs hands and lets out an evil laugh.) That's a little tinfoil hat-like.
One interpretation. I'm not suggesting that there was a grand conspiracy at the U. There was a concerted effort to make MSP a Major League city (NFL, MLB).
That coincided with the U driving the bus off a cliff in their righteousness (misguided in my opinion) that sports had become too important.
Two separate events occurring at the same time created the perfect storm during the period between Warmath and Holtz.
No foil hat required.
Evident from this end of history, if you've looked at any of the things coming from the administration at the time about their concerns over sports vs. academics, AND what was happening in the sports market from a professional sports approach.
I can even give you a couple of analogies in the business world of the same thing.
Television: When cable came on the scene, broadcast TV didn't take it seriously. The networks allowed cable systems to buy airtime in their programming to sell the idea that there was a "better option" for viewing TV. By the late 90s, Cable penetration was in roughly 80-85% of US households (TV was in 95% of US households). Viewership became fragmented. Must-see TV was no longer a thing, and the Networks have never really recovered. (Joke's on both of them as streaming buried both of them post-pandemic)
Photography: Kodak - People will never be satisfied with digital images. They want photo albums. Not worried about this "trend" - and we all know what happened to that idea when the iPhone launched.
The U made their valiant stand against sports in the 60's. Other Universities and Colleges did not follow Minnesota's lead. Sports skyrocketed around the U and their stance. We've been trying to catch up for the last 45 years.