A more basic problem with "athletic scholarships" is that being an athlete has absolutely nothing to do with being an academic/scholar/student of something else.
It might be a good way to bring some publicity to the school, and to make it have a strong team. But it has absolutely nothing to do with a school's intended purpose (except the "make money" purpose).
Athletic scholarships should only be a thing in sports academies - where you're trained to be a coach, a PE teacher, or a related academic in some of those areas.
In fact, universities and colleges should just have clubs to play sports informally, at the same level they have a music playing club, or a gym, or a cooking club. Like in the rest of the civilized (on that matter at least) world.