Its just like any other business that has additional fixed cost forced upon them without a corresponding revenue source. They deal with it in one of three ways:
1- Increase revenue. In this case raise tuition for all the other non-scholarship students or find some "benefactor" to set up funding for it.
2 - Decrease expenses. Most likely, they cannot cut expenses in non-athletic activities to make up the gap without significant backlash. So they'l just cut some other sports. In the north, it probably means baseball and softball go away (regardless whether they are winning programs or not).
3 - Suck it up and let it hit the bottom line. Ain't happening.
As always, the greed of the few (successful football and men's basketball programs) will come at the cost of the many (every non-revenue sport athlete and regular student). And as always, the few will force feed it into the media as "the right thing to do for our struggling student athlete". Of course, all the jock sniffers across the country will eat it up.
Finally, it will do nothing to stop cheating or wannabe hangers on from dousing players with gifts.