Thoughts:

1) From logistical standpoint, Manhattan area has more than enough facilities to host any KSHSAA state event. If Hays can pull it off (and 3A-1A should stay there...it's now institutionalized)than Manhattan/Topeka can.
2) KSU routinely allows local Kids Wrestling tournament which has as many participants as a KSHSAA state event.
3) Universities are profit oriented institutions. If a positive bottom line is possible, than the university will move toward enacting. However, the size of a wrestling team (12+ weight classes) multiplied by any given number of scholarships (presumptive, you could have a program w/o scholarships..but then this whole discussion is moot) inhibits the universities from establishing programs unless they can equitably demonstrate the same toward a woman's sport. For example, there are maybe 10 scholarshiped women on the basketball vice the 45 men on a football team. Something(body) has to lose (and football will not budge). The cost of the actual programs are irrelevant (i.e. when's the last time any university golf team or track team made money?) as virtually every institution lives or dies on men's football, men's basketball or women's basketball.
4) It's always good to remember as well that universities aren't easily 'bullied' as easily as the local school board. Granted, they're very concerned with image, but it's a risk/reward balancing act.

Tim