Jun 24, 2013, 9:59 PM EST
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
Jan 30, 2015, 12:50 PM EST
Aaron White suffered a stinger in Iowa’s loss to Purdue, and Gabe Olaseni is dealing with a sprained ankle suffered Monday.
Jan 30, 2015, 11:43 AM EST
The donation will be used to improve the basketball offices and practice facility, with leftover funds being used for any improvements that may need to be made down the line.
Jan 30, 2015, 11:00 AM EST
Kansas’ incredibly rigorous schedule moves them to the top line in the latest update.
Jan 30, 2015, 10:35 AM EST
Thursday’s loss was a reminder of the fact that these current Utah players are still getting used to being the “hunted.”
Jan 30, 2015, 9:50 AM EST
While D’Angelo Russell gets most of the attention (and rightfully so), another freshman has stepped forward in the last two games for the Buckeyes.
Jan 30, 2015, 9:02 AM EST
The Super Bowl isn’t the only high-octane action we’ll see this weekend.
Jan 30, 2015, 12:19 AM EST
With Shannon Scott being a senior and D’Angelo Russell considered to be a possible lottery pick if he goes pro, JaQuan Lyle’s commitment is a nice insurance policy moving forward.
Jan 29, 2015, 10:57 PM EST
Ike Nwamu scored 20 points in the Bears’ 75-72 overtime win over Chattanooga, but should he have two (or three) more points to his credit?
Jan 29, 2015, 9:38 PM EST
Providence’s Kris Dunn posted the program’s first triple-double since 2006, and UMass held off Dayton in Amherst.
Jan 29, 2015, 8:44 PM EST
The third year of the event means an improved schedule, with all ten games being played on one day.
Bradley’s leading scorer one of three players facing disciplinary action following incident Thursday morning
Jan 29, 2015, 6:57 PM EST
Warren Jones is averaging a team-best 13.8 points per game for Bradley, which has lost six of its last seven games.
Jan 29, 2015, 5:46 PM EST
Leland King led Brown in scoring and was also tied for the team lead in rebounds per game.
Jan 29, 2015, 4:42 PM EST
Rasheed Sulaimon played 12 minutes in the Blue Devils’ loss at No. 8 Notre Dame Wednesday night.
Jan 29, 2015, 4:15 PM EST
The Eastern Washington guard has received more attention nationally in recent weeks, and it’s well-deserved.
Jan 29, 2015, 3:28 PM EST
At the very least, he’s the most valuable player in the country.
Jan 29, 2015, 2:30 PM EST
Donnie Tyndall’s trail of destruction in Hattiesburg continues to grow.
Jan 29, 2015, 1:09 PM EST
Melo Trimble vs. D’Angelo Russell will be worth the two hours.
Jan 29, 2015, 11:49 AM EST
That hashtag, though.
Jan 29, 2015, 11:14 AM EST
It looks like T.J.’s got jokes.
Jan 29, 2015, 10:04 AM EST
Cottrill was once ranked above Shabazz Napier and Aaron Craft, among many others.
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- Duke dismisses reserve shooting guard from program 13
- Chase for 180: Already a good shooter, Tyler Harvey’s been even better in 2014-15 0
- Film Session: The case for Jerian Grant as National Player of the Year 1
- Jerian Grant, No. 8 Notre Dame erase another double-digit deficit as they beat No. 4 Duke 7
- Late Night Snacks: No. 8 Notre Dame outlasts No. 4 Duke in a thriller 2
- 2015 McDonald’s All-American rosters announced 2
- Duke dismisses reserve shooting guard from program (13)
- Jerian Grant, No. 8 Notre Dame erase another double-digit deficit as they beat No. 4 Duke (7)
- Coach K earns career win No. 1,000 in No. 5 Duke’s win over St. John’s (4)
- Kentucky lands commitment from international Class of 2016 big man (4)
- Wichita State guard Conner Frankamp arrested on Saturday night (4)