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
Jul 31, 2015, 10:00 PM EDT
Markelle Fultz was one of the best players during the July live evaluation period.
Jul 31, 2015, 8:45 PM EDT
Duke gets a huge official visit in late August from a five-star guard.
Jul 31, 2015, 7:15 PM EDT
LaMelo Ball, a 13-year-old guard, committed to UCLA like his two older brothers.
Jul 31, 2015, 5:45 PM EDT
Michigan State sophomore guard Javon Bess will try to stay healthy and in the rotation next season.
Jul 31, 2015, 4:15 PM EDT
Both are perimeter players, giving the Spiders additional depth moving forward.
Jul 31, 2015, 3:30 PM EDT
McLaughlin de-committed from Washington in mid-May, but the Huskies remain in the mix.
Jul 31, 2015, 1:30 PM EDT
The injunction would have allowed current and future players to be compensated for the uses of their names, images and likenesses.
Jul 31, 2015, 12:03 PM EDT
The two programs are ranked first and third, respectively, on the NCAA all-time wins list.
Jul 31, 2015, 11:07 AM EDT
Louisville, NC State, St. John’s and West Virginia remain in the running for his pledge.
Jul 30, 2015, 8:15 PM EDT
Powell’s recruiting profile has risen thanks to the way he’s played throughout the summer.
Jul 30, 2015, 6:56 PM EDT
With Jarrod Uthoff and Adam Woodbury being seniors, having two front court commits in 2016 is good news for the Hawkeyes.
Jul 30, 2015, 5:40 PM EDT
The Cardinal need to account for the loss of their top three scorers (and top two rebounders) from last season’s NIT champion team.
Jul 30, 2015, 2:37 PM EDT
The Crusaders are getting back the league’s defensive player of the year.
Jul 30, 2015, 1:25 PM EDT
Tyndall’s one NCAA tournament win sure was memorable.
Jul 30, 2015, 12:03 PM EDT
The cousin of former Pitt forward Chevon Troutman has developed into a quality recruit himself.
Jul 30, 2015, 11:43 AM EDT
Jul 30, 2015, 10:12 AM EDT
Nigel Hayes has game. He doesn’t have bars.
Jul 29, 2015, 11:40 PM EDT
According to the report SMU met with the NCAA Committee on Infractions last month.
Jul 29, 2015, 10:35 PM EDT
Harding won’t join the program until 2018 however, as he’ll be taking his two-year LDS mission beforehand.
Jul 29, 2015, 8:50 PM EDT
Director of player personnel Travis Diener is pegged as the best player in the games, with he and assistant Chris Carrawell trading some good-natured shots at each other.
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