If someone missing a left arm managed to get really good at baseball, they could still play. A one armed dude lighting it up on the field would be drafted, because objective results.
Of course this is highly unlikely because it handicaps skills related directly to baseball, but it's not completely impossible for a pitcher or DH. The Minnesota example is not comparable, because the ability to do good research is not inherently impacted by staying at one institution, and the grant evaluation is directly penalizing the staying part rather than indirectly.
I can't speak to whether the university or this guy's research were actually any good, but it hurts science to have such rigid proxy judgements.