<p>Athletic Departments are not intended to make money. They tend to spend every nickel they make, no matter how much they make.</p>
<p>Most operate with a large subsidy from the college, so they are a drain on resources rather than a revenue source. Plus at public U’s, the cost of a student’s education is subsidized by taxpayers, so every scholarship athlete who would not be a regular admit (at big-time football powers, a majority of the players) is taking away resources/seats that could have gone to a more qualified student.</p>
<p>If you look at successful athletic departments like U Florida or U Texas, they bring in revenue in excess of $120M/year, but they don’t have $50M/year expenses like a typical program, instead they run the expenses up to match or nearly match revenues. Florida even gets a subsidy from the college. They also have built-in subsidies that are counted as revenues, like student athletic fees that are mandatory whether you attend games or not, and rent-free use of facilities or land.</p>