Yes and no. It's a marketing function. Last I recall, maybe 20-30 schools had an AD that turn a profit, and that was without paying athletes. Do you think there's some huge bucket of cash just sitting there? It's already heavily subsidized, and aside from football and basketball, a complete money loser. They do it because kids like to attend a school that has sports. The real money is in admissions. The Ivys cut scholarships, because their students didn't really care. Nor MIT or CalTech. UC Santa Cruz has a nice ultimate frisbee team. Oxford, Cambridge, Trinity, none of the European schools have this. Maybe a non-scholarship crew team and track team. It's as it was in the U.S. 100 years ago. Actual students competing.
You move these kids to a payroll and the economics of this model collapse completely. You'll have maybe 40 schools participating. The rest will need to cut almost everything to non-scholarship. Schools like NYU, BU, Fordham, they may not even keep scholarship basketball. Honestly, their students mostly don't care now.
That said the NLRB is made up of mostly very, very pro-labor people at present. I doubt this ruling survives judicial review and even if does, Congress can wipe it out, and probably would.