The federal funds are not necessarily going to their sports programs and are likely not. The rule applies if the school is receiving federal funds at all. Even if the school has the money ear marked for research or classroom upkeep. If they have accepted federal funding then title IX applies to everything. Most athletic programs at the college level are funded by booster clubs/alumni programs. And the money making sports really function as a marketing arm for the university. You will see a ton of people wearing licensed clothing of whatever dominant school in the surrounding areas of the university who have never set foot in a classroom and likely never been on it campus.