It's funny how you accuse others of misrepresentation but are yourself misrepresenting.

Regarding overheads yes they pay for some of these things, but they also are clearly being used to prop up ever increasing administrative bodies (whose salaries have often grown disproportionately compared to academic staff).

Just some examples (and they are in physics/engineering and not the US so specifics are not directly comparable).

Professors had to pay the their salary + overheads on the percentage they worked on the project (those percentages often add up to to more than 100%, while not reducing teaching load).

Regarding rent, one of my colleagues compared the rates to rent in the prime location in the city centre and they were significantly higher. This is despite the fact that the buildings were often paid through large grants (who were often written by academics) and land was owned by the university.

In another case, I know of some universities were the biggest business unit was the real estate management unit (they were lucky as a university with significant land in the CBD of one of the most expensive cities in the world. In that country the university could not charge the academics for rent (funding rules), so instead the academics were put in the smallest space possible because renting out was more profitable. The money from renting also never was used for running the university.

Regarding paperwork, you call academics lazy. What I have seen is that almost all systems around reporting are designed to make life for the administrators easy, while academic time is treated as free (as academics don't get paid overtime). As examples, as an academic if you spend money e.g. when travelling for a conference you have to keep the receipts to justify spending (no issue with that). After you had to fill out the accounting categorisation fields for every $ you spend, scan the receipts and send the originals and the scanned receipts plus some form that had to be filled in online but also printed (finance couldn't print apparently) to finance. The spending had the to be approved by at least one other academic (head of lab, school or faculty). A friend was made to write a statuary declaration I front of a justice of the peace, because a $6 receipt from subway didn't say it was a sandwich.

For a similar example from teaching. I was responsible for the final year projects in an engineering degree. The university required all grades to be in the system two weeks after end of term. Because the grade in this program depended on a report which was handed at the end of term and all academics were extremely busy with grading their own courses, it was essentially impossible to collect the grades before the deadline. What that meant is that for every student we had to fill out a grade amendment that had several pages. While I had admin help to fill the form, I still had to check every page, initial the page and sign the document for >300 students.

Admin at university is absolutely insane and not designed with the academics in mind.

I'll stop this rant here, because it's already way too long, but I just had to reply because the post above just reeks of how many "centralised admin" seem to think of academics as a cost centre that is lazy and doesn't do any work. At my university I know that when there were redundancies admin were complaining that they didn't fire the professors, because they don't do anything anyway.