They lose money regardless of how many teams you have.
Its long been time to assess why conference directors can't break even and how to schedule things in a more cost effective manner.
Is losing a few more hundred at the gate worth more than losing any shot of being on ESPN long term? IDK.
But even with big turnouts and high # of teams, directors are still losing money on conference events. The late flights are a symptom, their needs to be a cure.