There is more truth to this than we can imagine. A couple of years ago in Sports Illustrated, an article about the Bowl Games had a comment from the Michigan AD, concerning the prior year which was a non-bowl year for Michigan. He said (paraphrased), that Michigan made money that year because they did not have a bowl game.
This is true, but only in the short run. The exposure the bowl game will give the University will be paid back in future years by increased football attendance, increased desire to attend Minnesota, and better football recruits - all of which result in more money flowing in to the university.