[jessaustin]

If money is unlimited, you could come up with reasons to fund all of the junk you've listed. For GP's example of a college fencing team, they need 1) occasional use of a well-ventilated room with a hard floor [and one or two electrical outlets if they're using that fancy electronic scoring] and 2) storage for their equipment when they're not using the room. Literally nothing else is needed. Few fans would ever pay to see fencing, so these actual student-athletes don't need any more compensation than the room and the storage. Equipment can be funded by donations and dues. Coaches should mostly be volunteers, but if someone needs payment that can also be from dues or donated.

(Source: I played on my college club kendo team. If anything the needs of fencing are less than those of kendo.)

[csa]

At most schools, what you are describing are called “club sports”. These sports have much less funding from the university, and they are ubiquitous.

The next logical question is probably “why aren’t all sports club sports?” The short answer is that varsity football and basketball are often direct or indirect money makers for the school that warrant funding for competitiveness, and title ix that says that there has to be access to sports at equal levels (typically this means a university needs a few women’s sports that have equivalent quality equipment, facilities, etc. as football and basketball).

[jessaustin]

Yes, I know about club sports since, as I said above, I played on a club team. All college sports should be operated as club sports. Since that's not going to happen for football and men's basketball in USA, it also won't happen for women's basketball and say, probably, women's soccer. Everything else that we're supposed to clutch our pearls about, however? Swimming, track, tennis, baseball, and various other even less watchable sports? Those are club sports. That is not an injustice to swimmers and tennis players. If they had what it takes to be "the best", they wouldn't be wasting their time on a college team.