At my B1G uni, the money made by the sports programs stays within the athletic department. Now it saves the school from having to fund the athletics programs, and it may be the case that having the sports teams keeps alumni engaged to make donations, etc., but the revenue doesn't directly go to anything academic. Of course, the vast majority of D1 schools do not get enough athletic revenue to cover costs so tuition money ultimately funds the programs. This was the rationale behind UAB shutting down its football program, where the school paid $20 million to the athletic department to cover its budget deficit every year (although football is/was proportionally closer to covering its costs, the raw dollars are bigger than every other sport).