There whole "gosh why wouldn’t' the SEC want ku" shtick is because they think the SEC would want another basketball school to bolster their basketball, which from top to bottom isn't that great.
But here's what your average ku tuck doesn't get. The SEC has won the national title twice in the last 10 years, they regularly have a least one team in the Final Four already, and as Larry Scott so correctly pointed out, basketball TV money is diluted and the NCAA tourney while a nice event, it's overall payout given the formula is chump change compared to TV contracts where football provides the mother lode.
The SEC already has a Kentucky; they don't really want another one.