It's all about the recruiting. A D1 school having anyone in their top 5 who runs slower than 26:00 just sucks at recruiting.
Not just someone in their top 5, their TOP guy was 26:57. The peak of their team wouldn't make the roster anywhere else in D1. A team's 7th shouldn't even be that slow, and the bar is even higher because PAC12 is loaded at the top and deep in talent. You are going to consistently rake mud at conference championships unless you have at least 5 guys capable of running under 24:30. 36th out of 72 runners at last year's sea-level PAC12s finished in 24 flat.
Who can Lagat even recruit with this reputation? Anyone with top level HS talent in Arizona is going to go to NAU before they go to ASU or UA. Anyone with scholarship-level talent is going to any other PAC12 school with a reputation for development and potential for success. Their only market is someone who opts for a full-ride in Arizona over partial aid somewhere else. Lagat better take up some studies in negotiation classes on campus because the AD is not going to freely hand out scholarships to this mess.
Lagat is stuck in an endless downwards spiral. The team is so horrendous that nobody good is going to want to run there, so he can't recruit anyone with talent, the team does horrible again and the cycle continues next year. The only way out is developing these athletes which is going to be a monumental task if all he has to work with is 27+ minute guys. The first step is getting 5 to even cross the tape in a race