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
Apr 17, 2014, 11:43 AM EDT
Hill wrote a nice note to Marquette fans to thank them.
Apr 17, 2014, 10:30 AM EDT
Five protesters from the Westboro Baptist Church showed up at UMass on Wednesday. 1,500 students rallied in response.
Apr 16, 2014, 10:59 PM EDT
Caris LeVert reiterated his decision to return to Michigan for his junior year at the team’s postseason banquet Wednesday.
Apr 16, 2014, 8:57 PM EDT
According to a report, New Mexico State center Sim Bhullar will forego his final two seasons of eligibility to turn pro.
Apr 16, 2014, 8:24 PM EDT
After leading USC in scoring last season, Byron Wesley announced that he’ll be transferring after graduating this summer.
Apr 16, 2014, 7:25 PM EDT
Arizona State’s Jahii Carson made official the news that’s been known since October: he’ll be entering the 2014 NBA Draft.
Apr 16, 2014, 6:32 PM EDT
Former Northwestern guard/forward Kale Abrahamson will finish out his career in his home state.
Apr 16, 2014, 5:31 PM EDT
UCLA’s Kyle Anderson and Zach LaVine made official their decisions to enter the 2014 NBA Draft.
Apr 16, 2014, 4:40 PM EDT
After considering leaving school to enter the NBA Draft, Purdue’s A.J. Hammons will return for his junior season.
Apr 16, 2014, 4:00 PM EDT
Three years after shortening the time players have to make a decision regarding the NBA, it’s time for the NCAA to re-adopt the NBA’s pre-draft calendar.
Apr 16, 2014, 3:07 PM EDT
The Arizona State transfer is headed to Rice.
Apr 16, 2014, 2:30 PM EDT
The Dukes have landed the for Massachusetts Player of the Year.
Apr 16, 2014, 1:45 PM EDT
There may not be a recruit with a more interesting back story that Devonta Pollard.
Apr 16, 2014, 1:00 PM EDT
Do you like them?
Apr 16, 2014, 12:15 PM EDT
Getting Kansas State to the NCAA tournament earned Bruce Weber an extension.
Apr 16, 2014, 11:49 AM EDT
Jim Christian wins his first recruiting battle as the head coach at BC.
Apr 16, 2014, 11:26 AM EDT
What Early Entry decisions will have the biggest impact on the 2014-2015 college basketball season?
Apr 16, 2014, 10:20 AM EDT
The next big thing to come from Canada isn’t going to be all that big.
Apr 15, 2014, 10:13 PM EDT
The Mustangs and Bulldogs are looking to meet in a home-and-home series.
Apr 15, 2014, 9:36 PM EDT
Watch the 7-foot-6 center play baseball.
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