Real question. When dealing with an athletic scholarship, does the AD actually transfer money somewhere for that scholarship?
All money is managed by the financial manager's office in the form of credits and debts. Whether that comes from the bursar (student accounts), the private foundations (endowment and research), running food services, or student housing, an academic department, or the AD.
So, for instance, if I'm allotted a certain amount for a program I run, I have to go through a financial manager in my college to get approval for the funds.
In other words, the AD never handles any money. They always receive approvals from the managers. I imagine those approvals are easy to come by, for the most part.
If you're asking if this is real money for those athletic scholarships, it is. The money allotted to departments by the financial managers for each athlete is real and just like every other student, it's meticulously counted.
I can get into some of the minutiae of it but it'll make you bleary-eyed. The short of it is this: the entire health of a department is determined by the number of majors / minors / students taught in department courses divided by the salaries of all the instructors who either taught those courses or who are in the departments.
That tuition money is the bottom line, basically. If the AD wasn't charged for it, they'd be freeloading off other departments.