HBCUs Say They Stand to Lose Out if College Athlete Pay Rules Don’t Change

When Trayvean Scott was a college basketball player at Southern University in the 2000s, he says, he was never asked to throw a game in return for a payout.

But more than 20 years later, he worries that the lack of a uniform policy about student athletes getting paid for their name, image or likeness — also known as NIL — makes them vulnerable to not only exploitation, but agents and even fans offering them money under the table that could hurt athletic programs in the long run.

As Grambling State University’s vice president for intercollegiate athletics, Scott, along with a former student, administrator, and the father of an NBA player, testified before Congress earlier this spring in support of legislation introduced last summer that would establish a uniform federal law governing NIL rights for college athletes.

According to the NCAA, “student-athletes may receive compensation from third parties for use of their NIL, such as social media posts, brand appearances or promoting products and services. All three NCAA divisions support opportunities for student-athletes to pursue NIL consistent with rules that protect fair competition.”

In 2019, states began passing laws allowing student-athletes to profit from their name, image, and likeness. As Congress attempts to address the patchwork of state NIL laws by creating a consistent national standard, Scott hopes it will even the playing field for student athletes at HBCUs.

The legislation would also codify that student-athletes are not employees, require major revenue-generating schools to provide health benefits and support at least 16 varsity sports, and require some programs to offer health insurance.

Scott told Capital B that the proposed legislation isn’t perfect, but it’s a start to more opportunities for Black colleges and their athletic programs.

“The word I kept coming back to [during testimony to Congress] was opportunity,” he said. “If we continue not to regulate what we’re doing, we’re going to miss opportunities.”

Scott and others say there’s a lot at stake. When athletes come to historically Black colleges and universities, there’s a high likelihood that they’ll have financial need to attend.

“We’re in a space at HBCUs, at Grambling, for example, where 95-98% of our athletes are Pell Grant eligible,” Scott said. “Being able to understand where they are can sometimes be able to help assist with getting the necessary resources.”

Oftentimes, HBCU athletes may try to transfer not only for a better deal but also for a chance at more money in a brighter spotlight at a program at a predominantly white institution.

Currently, the NCAA does not regulate how many times a student can transfer if athletes are academically eligible. While the current proposed bill doesn’t include a restriction, the Trump Administration has spoken up twice, attempting to place limits on transfers.

Earlier this month, Trump signed an executive order limiting transfers to one time during a four-year degree program.

“This Executive Order builds on President Trump’s longstanding commitment to showcasing American greatness through sports and recognition of its value in forging American leaders and culture,” the White House said in a fact sheet.

The executive order also calls on the NCAA to create a national agent registry and to bar schools from cutting scholarships or eliminating women’s and Olympic sports to fund student-athlete compensation.

But some observers are skeptical of the proposed legislation and the executive order.

“This executive order is trying to work hand in hand to limit those athletes from having that [financial] mobility,” said Billy Hawkins, who has written about the politics of the Black athlete.

Sports, he continued, like entertainment, is a transactional industry. Hawkins and a colleague are looking to write more on the complexities of the transfer portals and the different reasons one may transfer. He pointed out that some athletes may transfer for academic reasons or to follow a coach, as student-athletes at Jackson State University did after Deion Sanders left the Mississippi HBCU in 2022.

‘The portal has gotten crazy’

As the college basketball season comes to a close, several athletes are expected to jump into the NCAA’s portal to let coaches know they’re looking to transfer programs. Whether that’s for more endorsement opportunities or for extended playtime, the confusion and opportunity around the NCAA’s rules on NIL are playing out in real time.

Incoming college athletes like Dorsett Edwards are trying to catch the attention of college recruiters and fight for spots on teams. Capital B spoke with people who say the limitless transfer option blocks opportunities for incoming freshmen seeking recruitment.

Howard University football players celebrate after winning a game in August 2025. Recent changes allow college athletes to be paid for their name, image, and likeness, but there is no uniform federal law. (Photo by Glenn Beil/Florida A&M University via Getty Images)

“The portal has gotten crazy,” said Edwards, a freshman football player for Howard University. “It’s taking away from the high school athletes, and they’re not getting any opportunities.”

Before NIL, college athletes’ compensation didn’t expand beyond tuition and fees for their degrees. That didn’t stop students from filing lawsuits against the NCAA for using their names and images for profit.

While Scott sees the legislation as a positive start to the conversation, Hawkins, a professor at the University of Houston’s Department of Health and Human Performance, sees it as problematic.

“They’ve been able to be compensated, now you’re talking about limiting that to a certain degree. I find that somewhat problematic,” he said.

In 2025, the NCAA was ordered to pay $2.8 billion to Division I athletes in a class-action lawsuit called House v. NCAA, marking the start of student athletes profiting from their own image. Some states, such as Oklahoma, have introduced laws that limit transfers and require a waiting period after the transfer is completed, thereby causing the organization to pay out more.

“The NCAA is trying to stop all of that type of litigation again, because it costs,” Hawkins said.

However, that door remains closed for some athletes.

Edwards couldn’t recall whether any of his teammates on Howard’s football team had NIL deals. He could only think of a few on the men’s basketball team, which made university history with its first March Madness win last month.

“You’re not an Ivy League school, you’re not playing on a national stage, so it’s not as motivating for [some],” he said. “They might feel like they’re not getting a return on investment.”

Edwards said he hopes whatever Congress decides will open more doors for athletes at Black colleges to benefit from NIL.

Read more:

Howard’s Men’s Basketball’s March Madness Run Ends as HBCUs Make History

At Howard, Athletes Must Stand for the Anthem or Stay in the Locker Room

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