I think the question is why do they spend lots of money subsidizing it? I think it's a very reasonable argument that there shouldn't be college scholarships for athletic departments that are not profitable unless they are endowed by private donors. If the school is spending money on a sport, getting the play the sport is a benefit that other students don't get and a much more expensive one than most student clubs or activities.
This once again goes back to just a disagreement as to what is 'valuable' and 'justifiable' when it comes to spending.
There are hard benefits(athletics is financially profitable) and soft benefits(athletics create and sustain school identity, are entertainment for students and alum) when it comes to college sports.
You clearly view only the hard benefit as worthy of spending. Cool...but others view soft benefits as potentially worthy of spending.
A D2 university hosting 5 football games, 15 volleyball matches, 15 mens basketball games, 15 womens basketball games, 10 womens soccer games, 20 mens baseball games, 20 womens softball games is a way to create involvement and activity on campus through the year.
That can be valuable, even if it is a financial net loss.
I fully reject the concept that a university should only offer events/sports/activities/areas which are profitable. It must be viewed as OK for institutions to have areas or departments that show as a loss on the books. Not everything needs to be a profit center or even a revenue generator for it to exist.
- Hosting student activity event nights can be good, even if they arent profitable.
- Hosting athletic competitions can be good, even if they arent profitable.
- Running intramural sports can be good, even if they arent profitable.
- Having a library can be good, even if it isnt profitable.
Now this doesnt mean I think every program should be a $20MM burden to every university. You obviously need to balance the sports you offer with laws and financial realities.