Yep, that was one of the major challenges the Clark County School District (Las Vegas, NV) had when it went for certification to ISO 9001 a few years back. What it came down to was that the Educational System (education itself) was the product being sought by the Customer (Student, family, society, etc) and those things that helped to bering the Educational System to reality was all part of Product Realization.
All institutions have side shows like what you described, along with sports and such, and unless they are actually part of the realization process or can effect it (the educational process and customer satisfaction with it specifically) then that gibberish is probably out of scope.
Of course US Colleges are very much involved in playing good football to keep the alumni happy to get donations to build new facilities, blah, blah, blah.........that's all old news.Can you imagine how our colleges would look (scholastically and physically) if donations for academic excellance was on par with athletic achievement?