1. The college makes more income when the athletes do well becuase more people buy tickets to watch the games.
2 When an athlete does well, and the team does well, it builds popularity for the school , so not only do they do well in ticket sales for sporting events, , students may decide to go to school there, which will increase the amount of tuition the school makes.
3. When a team does well, merchandise sales with the schools logo increase and that brings in more money for the college.