Athletics distracts, and even subtracts, from the mission of a University...which should be higher education. Opportunities made available via athletic scholarships could still be made available through non-athletic means.
However, since in the universe we live in, college sports are the norm....sports can be a great way to obtain widespread positive publicity for a school. During the 90s, while a grad student in DC, people would come up to me when I'd be wearing a YSU shirt and tell me about how they watched them on TV.
I'd either go all in or all out. Either strive for excellence or put those resources toward academics. The Slocum-ization of MBB, and the embrace of mediocrity, reflects poorly on the University....as an example.