> If the univerity is funded by government money, well, that is theft.
Depends.
If you say "any use of taxpayer money that does not follow the purpose
of that money to the letter", then yes it is theft - as is any
festivities or whatever other resources the university is spending for
purposes other than education.
If "converting the money into something that benefits society" is
on-purpose enough, then no it's not theft.
Though that's going off on a tangent to what the OP was asking about.
Regards,
Jo