Even if the athletics department loses money on its operation, the claim is made that these sports are investments that generate considerable funding in the form of alumni contributions to the university as a whole.
A number of academic studies confirm that football bowl game appearances and basketball appearances in the NCAA men's basketball tournament have a positive effect both on the contributions that universities receive from alumni and on the quality of their entering students.
Intercollegiate athletics is more a participation activity than a spectator activity for students at Ivy League universities.
Public universities have long used success on the athletic field as a way of generating alumni and political support for their institution. To compete on the playing field with the public institutions in their conferences, Stanford, Duke, and Northwestern have all adopted the conference policy of awarding athletic scholarships.
Gender-equity efforts will have real financial cost if a university isn't able to bring itself to deeply cut male athletic programs. Sometimes gender-equity requirements add to the cost of existing women's sports.
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