They rake in huge revenue, but most programs are in the red. Former UMich president James Duderstadt wrote a book (Intercollegiate Athletics and the American University) where he claimed that the reported profits for most college football teams are bs, and in several supposedly-profitable Rose Bowl seasons, the Wolverines lost millions. Mostly the teams get so much $$ based on perceived (yet statistically negligible) alumni donation increases based on a team's success.