The issue was Title IX. BYU had balance between men's and women's sports, BYU would have had to add a womens sport. The donor was not willing to fund a women's sport as well. TH listened and is still close to the donor.
The ONLY focus was to take it to D1 and they did want a legit coach with D1 experience. For ex: the finalist at the UU were a top assistant at UNC (a top D1 lacrosse school) or an LDS guy who had real experience (ex: has an assistant at Notre Dame). Coach Holman was hired (former UNC) and has done a great job. This is Utah's first season in D1.
FYI, his son was already accpeted to BYU and is a great student. He was accepted pre-mission and "recruited" by the club team coach. Originally he was going to attend Loyola in Maryland (legit school for lacrosse, pre-season #5). On his mission (like many) he wanted to get to BYU/Utah. He went where he could play legit D1 lacrosse. Not sure what you are talking about.
Your money figure is WAY off. There are smaller donors in the $100k range that they pay over a number of years. He made a long commitment to fund Utah's program. The annual budget target is well over $1mm per and he is a sizable piece of that. His contirbutions are multiples of the $100k per year.
It is comments like this that make CB look silly. If your friends knew anything about the situatuion they would at least be in the ballpark.