There's no salary floor in D4 (iirc), and even with the relegation penalty he'll have no problem making money in D5 with a big arena, since he'll be winning all his games.
What is "cowardly" about this exactly? Why play the game if you have to spend precious time and money just to slightly advance on the treadmill of mediocrity that is the USA leagues, only to be stopped by the old money in the pros once you get there? If he's not saving money now and building for the future, don't delude him into having any sort of ambition. Tanking and training is the financially prudent move.
There is a floor in IV, though it's hardly noticeable (80% of TV contract).
I wouldn't call it "cowardly" exactly myself, but on the other hand I think it's definitely a much more interesting challenge to try to compete while at the same time focusing on training and building the arena and infrastructure. If your solution to an increasing challenge is to run from it until you can stockpile enough money to overcome it, you'll never be able to compete without that financial advantage.