So Mann's salary is whatever, call it $500k/year, paid for by Penn State. He brings in grants to perform research that justify to Penn State why it's worth it

So Mann's salary is whatever, call it $500k/year, paid for by Penn State. He brings in grants to perform research that justify to Penn State why it's worth it to pay him that $500k/year (e.g. a $5M grant will include some amount for the PI + research assistants, some amount of lab spend, some amount of overhead to Penn State). If that grant doesn't materialize, Penn State is still on the hook for that $500k. That's why it was tricky for Mann to prove damages here - Penn State was likely harmed, but Penn State didn't sue.