just pass costs onto taxpayers and some of these institutions are private. Administrators cave to demands that don't hurt their own salaries. They have had no problem loading students with massive student loans and charging them ridiculous fees for things.
They do sports because it generates revenue for the institution, even if their programs run at a loss, it is marketing for the university. Universities are businesses, bowing to social justice cancel culture is just part of the business, much like other businesses.