There is the risk that he will just think that you enjoy being treated like an escort and continue as he did before, but without money being involved.
I've made such sugarbaby arrangements before, for the partial purpose of controlling excessively "sticky", drama filled, or emotionally needy type relationships. In other words, to get specifically what I wanted out of relationship, without those parts I didn't want.
What would be the case, is certain women wanted to move in with me or stay at my place all the time, but I had other things I needed or wanted to do. Such women would cause time conflicts. And if they didn't get their way, tended to start games and drama with me. "Do you love me?" "Are you just using me for sex?" "My ex-boyfriend called me and wants me back, what do you think?"
When I was younger, I couldn't be so stern or strict about regulating such relationships. So for a time, I thought the solution was giving them money.
As the presently unfortunate Charlie Sheen once said, "I don't pay prostitutes for sex, I pay them to go away afterwards."
This can be a kind of time management issue. I'm wondering if this is such a case, with the guy in question. He is giving her money, as a way to placate her or as a concession for restricting time, to manage his time, and control the type of relationship it is. He might actually have very strong feelings for her, but doesn't want any drama or excessive demands on him emotionally, for his time, or for attention.
Subtracting money, still means he could have a time management problem. It requires that he and her have some deep conversations, where she understands to give him some space, without being emotionally hurt about it or instigating drama.