No one is losing 2 million dollars on football.
Years UNI is in the red it's about 500K in the red for football.
There are years UNI actually turns a football profit.
Most years it's basically a wash.
UNI did a study in 2010 to explore what the options for football were - stay FCS, move FBS, go non-scholarship D1 (Drake, Valpo, Butler, etc...), go D2, or drop football completely. The study found that going doing anything except staying FCS or moving FBS would end up costing the athletic department so much money it would cripple it. The number of donors that would drop donations was found to be about 80% of donations. Ticket sales would have dropped an estimated 80-90%. It was found that donations to the university - not just the athletic department - would fall. It was found enrollment would greatly decrease thus losing money.
The reason so many hold on to football, even if it doesn't "Seem to make sense" is that the PR hit to the general public, the PR hit to the alumni, the PR hit to the donors, etc... isn't worth the potential savings on football.
UNI spends about 3.6M on football. Between ticket sales, cost to park (straight cash for the AD), FBS games, concessions, merch sold on game day in the stadium, and players not on scholarship paying tuition the program isn't losing any real money. That's not taking into account the donors who would go away if football left the school. That's not taking into account so many other things.
It's not as simple as "Drop football and take that 3.6m and put it into other sports".