<p>There are many schools in which the athletic department budget and the monies collected by the school from tuition/room/board/government propriations are entirely independent of each other and there is no mixing of the funds. (except for the money the athletic department gives to students in the form of scholarships that they eventually actually pay to the university as tuition). I know that the the University of Nebraska is set up this way. Theoretically the University itself could fold and the athletic teams remain financially viable (except for the whole student part of "student-athlete").</p>