If I recall correctly, funds were tight, but things just then were looking a bit better.
So Cael or women's gymnastics coach KJ Kindler (now at OU) or any other non-revenue sport might realistically, at least, ask for something more -- the problem being that probably not everyone's expectations could be met. It just wasn't that big a pot. And all sports probably had some deferred needs as funds brightened a bit, including football. I'm not saying things might not have worked out otherwise, but that was the money situation at the time.
Cael's salary then I believe the highest in wrestling. PSU (and others, like Ohio State) were moving to higher levels. Cael was surely aware of this, and as the mentions of recruiting suggest, it is something he had thought about. An analogy might be Dresser's salary this year versus what Cyclone fans hope to see happen today.