Some universities have made it their identities and believe it's their only way to thrive or even survive. We know that US higher education is in for a big change with changing demographics and at least currently due to political reasons (loss of international full pay students).
SMU got its ACC bribe money directly from alums. In essence, they solicited those funds in lieu of contributions to their endowment (which is solid, but not spectacular) or other projects (like new facilities). They must have determined that having legit D1 sports outweighs student aid or a new building.
Schools like Memphis should consider deemphasizing sports. The school is not well funded and has a small endowment. Memphis doesn't get many out of state students and doesn't get the wealthy smart kids in Tennessee. They get the kids that couldn't get in anywhere else, or need to commute from home. The mandate should be providing the best education, for the lowest price, to its Tennessee residents. To be fair, the only reason people have heard of the school and not a school like Rowan in New Jersey is sports, but is that really helping its students? EDIT: I looked up the costs, and it is SUPER cheap to go to Memphis.