The Tertiary Education Union says Otago University's sponsorship of a Super Rugby team is a gimmick that is bad for education.
The university has signed a two-year sponsorship deal with the Highlanders' franchise for television and brand exposure.
Tertiary Education Union deputy secretary Nanette Cormack says the idea is all wrong.
"We see the role of the University of Otago and of all public education institutions in New Zealand to be about providing quality public education and research, not about funding private sports teams."
Otago University vice-chancellor Harlene Hayne said the university is a business, and like any business marketing is a core activity.
"It's my job as the vice-chancellor and the CEO of this business to make the best decision I possibly can about value for money and exposure”.
Otago University Students' Assocation president Ruby Sycamore-Smith said the university is right to get in behind the New Zealand culture.