Most people don't realize that only a handful of college programs are profitable. (Think UF, Ohio State, Texas, Alabama) Probably less than 5%. If you start paying athletes then the money won't come from the athletic department revenues, it will come from student fees or tax dollars. That is why I have a problem with paying players. All division 1 athletic programs are subsidized by student fees. Don't believe the hype that the football or basketball programs are subsidizing the non revenue sports. They mostly run deficits. The football programs at most schools are using student fees to balance the books. If you pay players then the rest of the students will foot the bill.
You should watch the video. Oliver brings that up, but it's nothing that wasn't already known by anyone who pays attention. There are a good number of smaller schools that lose money, but many of the major schools that are "in the red" aren't making money by design. The revenue is spent on facilities, equipment, etc. beyond what is needed. The money to do that comes from the talent on the field, court, diamond, etc. Most athletic programs are simply going to spend whatever money comes in on whatever they can find to spend it on, call it expenses and then say, "Hey. See. We don't make a profit at this."