There are only a small handful of athletic departments that actually turn a profit. Alabama, UF, Texas, and a few others are really the only ones that consistently stay in the black, and that is because they have HUGE alumni and donor networks.
UM has netted out in the black the last couple years, largely by keeping costs moderate.
UM's attendance has never been a big driver for revenue. That is, even in our best years, we averaged ~50k or so per game over the course of the season. If we average out at 45k this season, for instance, that's a loss of 30k over 6 home games. 30k X $30 per ticket (that's an overestimate, IMO, because most people buy tickets online through stubhub or the like for a fraction of the regular price) is 900k. So even in the worst of years, we're only missing out on under a million in ticket sales. Add a couple hundred k for parking and concessions and call it 1.2 mil for a rough estimate.
We get the same TV money no matter whether we're on top or mediocre.
So does that 1.2 mil in extra revenues worth the cost of paying for top-notch coaches, potentially paying for a new stadium, etc?