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
Oct 24, 2014, 10:55 PM EDT
Tom Izzo does it again. Add it to the long line of amazing midnight madness entrances.
Oct 24, 2014, 10:24 PM EDT
Chris Mack and his daughters performed ‘Paul Revere’ at Musketeer Madness on Friday night.
Oct 24, 2014, 8:05 PM EDT
The Wisconsin forward is likely to miss a week or two
Oct 24, 2014, 7:30 PM EDT
Ed Cooley adds a 6-foot-8 forward to the Friars’ front court.
Oct 24, 2014, 6:45 PM EDT
The former Virginia Tech Hokie will be a big boost to SMU’s perimeter.
Oct 24, 2014, 6:00 PM EDT
Manhattan and head coach Steve Masiello had some issues to address this spring, but thanks in part to their departed senior class the Jaspers are well-positioned to once again contend in the MAAC.
Oct 24, 2014, 5:05 PM EDT
One of the nation’s highly-touted bigs is closer to making a decision after eliminating two programs from his list.
Oct 24, 2014, 4:22 PM EDT
Jones became the second coach to lead LSU to postseason appearances in his first two years this past spring.
Oct 24, 2014, 1:52 PM EDT
Kellogg’s led his alma mater to 21 wins or more in each of the last three seasons.
Oct 24, 2014, 12:39 PM EDT
Georgetown holds a 35-29 lead in their all-time series with UConn.
Oct 24, 2014, 12:30 PM EDT
Villanova went 29-5 last season and return essentially the same lineup. Why aren’t more people talking about them?
Oct 24, 2014, 12:13 PM EDT
Texas now has two four-star commitments, with Kerwin Roach joining Eric Davis on Friday.
Oct 24, 2014, 10:00 AM EDT
Of Baylor’s five verbal commitments in the Class of 2015 four are guards, including their latest commit.
Oct 24, 2014, 9:00 AM EDT
Kentucky’s on top, but who’s next in line?
Oct 24, 2014, 12:06 AM EDT
Syracuse’s men’s basketball and football programs are under investigation, with the stakes being higher for Jim Boeheim’s program.
Oct 23, 2014, 11:20 PM EDT
Joshua Smith averaged 11.5 points per game before being ruled academically ineligible last season.
Oct 23, 2014, 10:49 PM EDT
Cam Payne became the star of Murray State as a freshman, but he wouldn’t have gotten there if he had a back up. Why?
Oct 23, 2014, 9:53 PM EDT
The preseason favorites to win the Atlantic 10 added a new teammate Thursday.
Oct 23, 2014, 8:03 PM EDT
Shawn Lester averaged 11.9 points and 4.2 rebounds per game in the sixth man role last season.
- Manhattan’s returnees look to build on the achievements of last season’s senior class 0
- 2014-15 Season Preview: Rivals Iona, Manhattan have company in race to the top of the MAAC 0
- Top 25 Countdown: No. 11 Villanova Wildcats 0
- 2014-15 Season Preview: Kentucky’s loaded rotation leads nation’s best front courts 0
- Cameron Payne didn’t expect to fill Isaiah Canaan’s void at Murray State, but he did 0
- 2014-15 Season Preview: The Top 20 Perimeter Attacks 1
- Top 25 Countdown: No. 12 Wichita State 1
- UNC investigation states bogus classes pushed by academic counselors to athletes (7)
- Report: Texas plans to start paying their athletes $10,000 stipend (4)
- 2014-2015 Season Preview: College Basketball’s Top 13 Dunkers (VIDEOS) (3)
- Texas A&M lands another five-star center, has loaded 2015 recruiting class (2)
- Florida guard cleared to return to practice (2)