http://sitemaker.umich.edu/356.microsoft/educational__academic_eligibilityI found several studies that support the theory that athletics positively influence student's grades.
When you become a productive member of society it isn't all classroom and books. Extracurricular activities are no different than some of the distractions you will encounter when are in the real world. I believe that I am sending my kids to school to enhance their ability to become a productive, voting, tax paying member of society. To be that, it takes way more than reading books, taking tests, and being graded.
What is funny to me is the number of AD's who don't understand sport's economics. This is most likely caused by the extreme departure between business and academe. This reverse correlation has led to the current demise in funding and the crazy ideas many have for cutting costs and saving money.