I generally agree with you on this, I don't feel publicly held companies should be throwing money at college athletes when they have to answer to stock holders on profits, etc.
However, I would offer that the major corporation located in Memphis (FedEx) may feel it worthwhile to be a booster to the market's name brand university for a number of reasons. They may feel it brings value and happiness to the city and the university if it has winning programs. They may think the city will have a higher profile if the local major college sports teams are excellent and well respected thanks in large part to winning. There are many big time Fortune 500 corporations who champion local boosterism to help the image and profile of the market they are located in. FedEx likely feels like helping create good major college sports is worthwhile. FedEx owns the naming rights to the arena, to the PGA Golf event in Memphis, and clearly must believe that sports marketing to create a higher profile (and possibly a higher quality of life in small ways), is worthwhile.
I would also offer that Mark Coyle and his fundraisers should be showcasing the FedEx boosterism to local Minnesota companies suggesting if the Gophers are good, that is generally a better thing for the home city of whatever corporation they speak to. And, then, encourage said local companies to follow a similar path to upgrading the local market's major university athletics department.