Wild that Pop Warner thinks this is safe enough to do while WDW still has the hotels closed because it isn't safe. Or TDO just wants to save a buck and it costs more to have their rooms open than they make from this?
Loss is of the indoctrination that comes from a kid's onsite visit and the revenue that nostalgia would have brought in the future. These are not long term thinkers though and they prove nostalgia means very little to them.
I don't know how Disney handles events, but from experiences with conventions and conferences, here's my two cents. Pop Warner didn't move from Disney on a whim or because D was increasing nightly rates slightly. Redoing a large scale event with that many parts at a new venue is a serious time sink which people don't do unless absolutely necessary.
Negotiations probably broke down due to one or more of the following.
Disney wanted a much larger guaranteed room block than Pop Warner was willing to give. Conversely, Disney went the opposite direction and wanted a shrink the size of the room block. The former would put Pop Warner in a bad situation if the rooms couldn't be filled (Pop Warner would need to pay Disney for their guaranteed room night requirements). The later could turn people off from attending Pop Warner since they'd have to pay Disney's current going rate for a hotel room.
Disney increased the spend or room night requirements for use of WWoS. If Disney is treating WWoS like convention space, Pop Warner was receiving a discount (up to 100%) off the rental cost of the facilities for purchasing goods, services, catering, and room nights through Disney. Disney might have deeply reduced the discount or drastically increased what Pop Warner had to spend for the venue.
Disney completely eliminated / bared the use of outside contractors by Pop Warner and was planning on enforcing this limitation.
New waiver of liability or additional insurance requirements required by Disney for their group size due to coronavirus. Pop Warner couldn't or wouldn't agree to the waiver or cost of the insurance.
With how long Pop Warner has been at Disney, I'm wondering if their usual event manager with Disney didn't retire, resign, or was fired. With the numbers Pop Warner was bringing in, what Pop Warner was spending and the associated personal spend from participants, I'm surprised an agreement couldn't be reached.