Develop future Olympic athletes so the US can be competitive and provide a livelihood to those athletes, 3. Nonprofit universities' mission is to develop talent and learning in multiple dimensions, not just for the few students gifted in men's basketball and football.

If profit-making were the sole criterion for university programs, the Church and state governments would stop subsidizing tuition and drop most extracurricular programs ( eg, drama, choir, dance, clubs, orchestra, debate, intramurals, etc).

For-profit schools ( eg western governors, Phoenix, etc) don't have team sports generally for the reasons you bring up.