Some of the smaller schools DO lose money on their sports programs.
Absolutely correct. Here's the way it works. Football team takes in $1,000. Girl's Volleyball, the Tennis Team, The Golf Team, Girl's Softball, Field Hockey, etc. cost $1100. Net loss: $100.
But this non-football part of a sports program is a fundamental part of the college experience, and thus must be supported. As a result, sports programs often cost more money than they make. Worth it. Sports are part of education. Mens sana in corpore sano, etc. etc.
In short, very often Football/Basketball programs make the money that the "Sports Program" loses, or in the case of small outfits, at least help.