To play devils advocate its not free and by default the cost accrues to the more successful students who may not have the financial resources to pay the additional funds and may opt not to attend despite being quite qualified. In some cases you may be trading more qualified graduates for less.

For some the truth may be that their lack of success may be external issues that can't be resolved by an additional investment of staff resources or just unsuitability for the program that can't be resolved other than by picking a more suitable major.

There is of course in the context of US education which wastes massive amounts of money so the actual answer is to stop wasting money on sports and invest that money in students but in all cases resources remain finite and some failure rate is inevitable.