Model binding in registration form for Laravel 5.4

I am trying to pull list of data from database and show it as a dropdown in a registration form. But I get error undefined variable universities.

Register Controller

/**
     * Create a new user instance after a valid registration.
     *
     * @param  array  $data
     * @return User
*/
    protected function create(array $data)
    {
        $universities = University::lists('id', 'university');
        $sch_depts   = Department::lists('id', 'department');

        return User::create([
            'firstname' => $data['firstname'],
            'lastname' => $data['lastname'],
            'email' => $data['email'],
            'password' => bcrypt($data['password']),
            'university' => $data['university'],
            'school_dept' => $data['school_dept'],
        ])
        ->with(compact('universities','sch_depts'));
    }

register.blade.php

<div class="form-group">
                            <label for="university" class="col-md-4 control-label">University</label>

                            <div class="col-md-6">

                                {!! Form::select('university', $universities, null, array('id' => 'universitiy', 'class' => 'form-control')) !!}

                                @if ($errors->has('university'))
                                    <span class="help-block">
                                        <strong></strong>
                                    </span>
                                @endif
                            </div>
                        </div>

I am getting an error universities undefined.

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