I don't have access to everything, but from what I did have access to, KSU had some good evidence to show that RP did NOT consider the MOU part of his contract and with which it would've been clear there was a very solid defense to the Apparent Authority argument of "why wouldn't RP think the AD could execute an MOU on behalf of KSU?". The trial would've been a circus, and BK and probably Wefald would've been thrown under the bus, but I think (especially in RL County), that KSU had a decent chance at coming out alright on the deal and at least a good enough chance to warrant rolling the dice on the difference between what they paid and the max they could've had to pay vs. getting out for nothing. Plus, even with losing the trial, they'd have BK and possibly Wefald set up well to recoup the loss.
It seems clear to me that they only did this deal because they didn't want to deal with the publicity of all that, and RP's crew probably knew that would be the tucky fear they could play on. There's no way that KSU could possibly believe the BS in the settlement about it being - to steal a phrase - confirmed that RP had clean hands in all this.