Historically Black Colleges and Universities (HBCUs), which once saw a surge in their athletic programs, are now facing significant challenges. With a request for assistance, four commissioners from major HBCU conferences have reached out to the Congressional Black Caucus, expressing their concerns regarding the potential implications of a movement to classify college athletes as employees. They fear that such changes could jeopardize the sustainability of their athletic departments.
Anthony Holloman, who oversees the Southern Intercollegiate Athletic Conference (SIAC), shared that Yvette Clark, chair of the Congressional Black Caucus, has agreed to meet later this month to discuss these issues. The SIAC, along with other conferences like the Central Intercollegiate Athletic Association (CIAA), Mid-Eastern Athletic Conference (MEAC), and Southwestern Athletic Conference (SWAC), serves approximately 15,000 athletes across 48 Division I and Division II programs.
The commissioners warn that being required to put athletes on payroll could lead to severe budget cuts for these institutions. If athletes become employees, they would be liable for federal taxes on their income and scholarships, while schools would incur additional tax obligations, all of which complicates affordability for students. Many of these schools already operate with limited financial resources and depend on funding from the state and private contributions.
In their correspondence, the commissioners highlighted that an inconsistent array of state laws is further complicating the situation, leading to confusion among potential student-athletes. They emphasized the need for national policy uniformity to help both college sports in general and HBCU sports in particular flourish. In their view, it is critical that Congress clarifies that student-athletes should not be classified as university employees.
Institutional funding is vital for HBCUs, which heavily rely on state appropriations and donations. However, philanthropic support is diminishing. Holloman pointed out that recent corporate restructuring has led to the dismantling of diversity-focused divisions, which were previously significant sources of donations for HBCUs.
To counter these financial challenges, some HBCUs are exploring alternative revenue sources. The SIAC, CIAA, and SWAC have partnered with the Allen Media Group, enabling them to generate income by streaming their sporting events on HBCU Go, with the SIAC’s agreement established in January 2024.
Despite these initiatives, a considerable gap persists between HBCU programs and those from the Power Five conferences regarding television rights revenue. Changes to name, image, and likeness (NIL) regulations have further exacerbated this inequality. Holloman also noted that the current duration of the transfer portal complicates efforts to retain talent within HBCU programs.
Only a few years ago, HBCU athletics appeared to be thriving, aided by Deion Sanders’ coaching success at Jackson State and an increased focus on social justice following George Floyd’s death, resulting in a surge of donations to various programs.
In a survey conducted by the Associated Press with 46 Division I and D-II HBCUs, it was reported that more than twenty universities added a total of at least 42 NCAA championship or emerging sports since 2016, with an impressive 32 introductions occurring after 2020. Morgan State’s decision to launch a men’s wrestling program under Olympic gold medalist Kenny Monday was a highlight among these changes.
Now, these newly introduced programs may pose additional challenges if more states follow the trend of designating athletes as employees. The commissioners concluded their letter by stressing the risk to opportunities for predominantly Black students at their institutions, stating that upcoming regulatory changes could reshape the landscape of college sports without adequate representation or input from HBCUs and their student-athletes.
