I think this is a very good point, and I've often wondered why so many athletics programs still exist when they lose money every year. I wonder if there's an effect on enrollment that the school considers. Athletics are a big part of student life, and without them a smaller state school might see a decline in enrollment. I wonder if keeping the programs is actually less costly than cutting them.
There is definitely an effect on enrollment at bammer. Bammer is up to 34K and climbing...in fact I think it might be 36K this fall. Only 22% of the students are in state. When I asked a bammer alumnus, he said he supposed that out of state students are attracted by the success of the football program.
That is not something that I even considered when going to college, but if you just want to go and party and have a good time, I guess it's a factor. It sure as heck doesn't help academics, at least not directly. Although I have heard that name recognition matters when getting a job. Bammer is already pretty well known nationally though....I seriously doubt employers hire because your alma mater won the MNC. Well, at least not OUTSIDE of bammer....