Most of them had their football program well funded before that. They were subsequently enjoying success on field and presumably the box office, which meant that it was reasonable to upgrade their facility.
Pitt had tightly constricted the program itself and it was in death throes. Yes, chalk that up to abysmal leadership for sure. But it also meant it was suicidal on two fronts to throw a ton of money to renovate Pitt stadium (or build a whole new Pitt- owned stadium).
One, it was a zero sum position. The money put in would leave even less money to spend on the program... coaches, recruiting, payola. Pitt had already dried up that to near nothing as it was.
So with even less to spend on the team, it would suck even more than it did at that time.
Which means (after the initial curiosity to see the renovations), the stadium would have been even emptier than it was before. Because no matter how nice or if on campus or off, nobody goes to see a team that sucks. Don't believe me, check the crowds at our basketball games last year and for the foreseeable future. The Pete is no less nice a facility now as the last decade and it is ON CAMPUS, but crowds recently have stunk... with likelihood of near emptiness this coming year.
Again, yes, the abysmal Pitt administrators bear heavy blame for their awful management of football (and now basketball). Bunches of pansies that should be heaved off the top of Cathy. Including the present group, for killing a top 10 hoops program.
But in the sliver of time that all the facility activity was in swing in the late 90s, they made the smartest ... really only ... decision they could.