I don't think the solution is more money. The solution is better recruit generation.
If lower-rated recruits were more likely to have "blue" potential in key categories (i.e. a low rated guard being statistically more likely to have blues in speed, per, bh, pass, etc), they would make better backup recruiting options. They may not start right away, but they would grow into competitive players.
If those kind of players were the backup recruiting options, guys would be more likely to battle, knowing that they could still get a decent player if they failed. To me, the greatest risk in a recruiting battle isn't the lost money, as much as it the inability to land a decent backup option. It turns into feast or famine.