Jun 24, 2013, 9:59 PM EDT
The Ed O’Bannon case could be hurting the NCAA’s credit outlook, according to the Wall Street Journal.
Looks like the case is starting to affect other things outside the courtroom, with the case slowly catching on nationally after a slow start. O’Bannon, a former UCLA player, is looking to help former college players recoup royalties from their likenesses being used in video games.
The report marked the first time that litigation has emerged as a risk in a Moody’s report for NCAA debt. A federal judge in Oakland is weighing a class-action certification for the suit, launched by former UCLA basketball star Ed O’Bannon in 2009, that would add potentially thousands more current and former athletes to the case and expose to the NCAA to greater damages if it loses.
The NCAA’s credit rating has not changed, but the outlook presents a prediction of what it will be in the near future. This is especially true if the lawsuit O’Bannon is keying gains class status. The credit watch is a prediction that covers the next two years. Their current credit rating sits at Aa2, the third-highest rating available. If the case does gain class status, that would prompt the change, more than likely.
If the O’Bannon case gains class certification, Moody’s says the NCAA could face greater danger of a downgrade from the third-highest Aa2 rating, which would affect $40 million in debt the association took out in 2005 and 2010 to buy rights to basketball’s National Invitation Tournament and renovate its Indianapolis headquarters, among other expenses.
The NCAA is currently staring down $40 million of debt taken from 2005-2010.
Increasing interest in the case was the reason for the report. “We felt the trial has advanced to a point where it was worth looking at the credit again,” said Moody’s spokesman David Jacobson.
Follow David Harten on Twitter at @David_Harten
Sep 20, 2014, 11:29 PM EDT
Three Mountain West programs and one Big Ten program among the schools on the Las Vegas native’s list.
Sep 20, 2014, 7:50 PM EDT
The elite PG from New Jersey had his first in-person meeting with Kentucky head coach John Calipari on Thursday.
Sep 20, 2014, 6:18 PM EDT
The South Charleston HS floor general was one of the state’s best players last season, and he could prep for a year before joining the WVU program.
Sep 20, 2014, 5:03 PM EDT
The son of a former national champion has made a name for himself by scoring 28 points per game as a junior.
Sep 20, 2014, 3:35 PM EDT
Mount St. Mary’s rewarded head coach Jamion Christian with an extension.
Sep 20, 2014, 2:00 PM EDT
Gonzaga has one of its deepest teams of all time and the Bulldogs are challenging themselves with a difficult non-conference schedule.
Sep 20, 2014, 12:45 PM EDT
Bradley forward Auston Barnes has been charged with misdemeanor domestic battery following an August arrest.
Sep 20, 2014, 11:30 AM EDT
Pitt and head coach Jamie Dixon no longer hold a commitment from a former 2016 recruit.
Sep 20, 2014, 10:15 AM EDT
A three-star forward has four schools that are heavily involved.
Sep 20, 2014, 9:00 AM EDT
Matt McQuaid can really light it up from the perimeter.
Sep 19, 2014, 11:50 PM EDT
Stephen Zimmerman is ranked the No. 10 overall recruit by Rivals.
Sep 19, 2014, 11:00 PM EDT
Kentucky fans camped out on Monday in order to officially camp out for tickets on Wednesday morning.
Sep 19, 2014, 9:45 PM EDT
The Rhode Island forward is eligible after missing the 2013-2014 season.
Sep 19, 2014, 9:00 PM EDT
The 6-foot-8 forward has two years of eligibility remaining.
Sep 19, 2014, 8:15 PM EDT
He was arrested on Feb. 14.
Sep 19, 2014, 7:00 PM EDT
The Yellow Jackets have added two new assistant to the coaching staff this offseason.
Sep 19, 2014, 5:25 PM EDT
The Orange holds the first of two exhibition games on Nov. 2.
Sep 19, 2014, 4:08 PM EDT
The Roselle Catholic (New Jersey) product picked the Gamecocks over Seton Hall and Rhode Island.
Sep 19, 2014, 2:46 PM EDT
Interestingly enough, UAB visits Chattanooga December 22.
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