Only Molly and her agent know the extent of the negotiations - but if you are Saucony facing a potential 200K/year bill, or more, you have to consider what you're going to get in the future for this. They already have the bump from the olympic trials performance, and London, and Saucony does not have a lot of money to spend.
Molly will run in the olympics this year. Rule 40 still places some limits on how hard she can promote her sponsor. While she's at any official event, she'll be in her full USA gear, which isn't Saucony. Also, with the olympic marathon on August 7, she will not have many options to run a major fall marathon after that unless she wants to try New York. So for the most part, in 2021, between COVID and the Olympics, there are not going to be many new opportunities for her (including other fall road races).
If Saucony were to pay the money, they would really be banking on a decent performance in the Olympics and then a really strong performance in the Spring of 2022 ... for example in Boston. Although because Molly is an olympian, I'm sure London will be calling too.
All this stuff aside, I want to know what Saucony's overall budget is. I think they have a great thing in Molly. She is personable, has a great story, and runs very well. I think she also has great potential for the future. Even though 2021 is a bit of a wash, it would have been worth it to take the gamble on the next 4 years.