Bad take with no argument to justify it.
Sports are good for universities. Monetarily it's easy to see why, but it's also academically good too. Having sports teams builds a sense of community for the school that will bolster fraternizing between otherwise separate groups of people. This leads to students forming broader webs of connections than they otherwise would, which gives better outcomes after graduation since they know more things about more of the world, which is the point of going to a university.
Just because a portion of funding doesn't make it back to the classroom for other students, a university is more than its academics. And the gyms and training centers built for the athletic program can often be used by other students at schools where the athletic program isn't popular enough to pay for itself.