University is still directly subsidizing the department even after the student fee.

http://www.azcentral.com/story/sports/college/ASu/2016/03/03/student-fee-boosts-asu-athletic-revenue-record-84-million-2014-15/81151674/

I'm a little confused. They broadly explain (without being specific about ASu) how a subsidy can consist of tuition wavers for athletes.
This part is a little murky for me. I was under the impression that U of A's AD wasn't subsidized but they list it as 8% of department revenue. does that 8% consist of tuition wavers? I didn't know the accounting worked that way in any case.

The subsidy may vary by school. I think it could also include providing facilities the rest of the school pays for.