The conference called off Saturday's game in Winston-Salem, North Carolina after the alleged incident.
Rudy Johnson, the starting quarterback for the Rams, was "viciously beaten" by a group of Virginia State players in a bathroom, according to the Winston-Salem Journal.
One Virginia State player, Lamont Daniel Britt, admitted his role in the beating, the Journal reported.
A Forsyth County jail official says Britt, a running back from Portsmouth, Va., was being held there Friday night on a charge of misdemeanor assault inflicting serious injury.
"There is no excuse for the behavior of the Virginia State players," said WSSU Chancellor Donald Reaves.
Young said Johnson was assaulted in the bathroom at the Anderson Conference Center on the Winston-Salem campus during the luncheon.
"Today's event was supposed to be a celebration for both teams and for all the players who were being recognized for an outstanding season," Reaves said.
"The actions from the Virginia State players certainly changed the outcome for everyone."
Both teams are 9-1. The Rams lost to Valdosta State in the NCAA Division II championship game last year, and the two teams were in position to earn postseason berths this season.
The Journal reported that five Virginia State players were involved and Reaves said university police are trying to identify the others.
One of Johnson's teammates told the newspaper that "Rudy was beaten up bad and he can't play."
A photo taken of Johnson shows him holding ice over his right eye.
Johnson, a 6-2, 205-pound junior from San Diego, was 9-0 as a starter after taking over the top spot in the second game.
He has completed 150 of 239 passes for 2,076 yards and 22 touchdowns with five interceptions. He's also the team's second-leading rusher with 420 yards and six rushing scores.
Britt, a 5-foot-10, 205-pound sophomore, was Virginia State's third-leading rusher with 276 yards and one touchdown on 63 carries.