This shows that the college views excellence as a beneficial attribute, therefore increasing its position as an academically focused institution. Athletes in general are brought up with the drive and determination to achieve, and if they don't do well they are pushed in the direction that is most beneficial to them. Education and athletics are complementary to each other, and it only benefits the school, and does not undermine educational standards when there are high quality athletes on campus. Some students that are interested in going to college are also going to be athletes. A college that has a good sports program is more likely to have positive enrollment.
Sports are like additional advertising for the college.
The colleges student-athletes are in the paper, they are winning championships, they are constantly in the publics' eye. This type of publicity reaches future students. It also reaches alumni. People are more likely to get behind a winner than a loser is. College sports gives something for the students, faculty, community, etc., to rally around.