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
Mar 5, 2015, 1:22 AM EST
Neither the Panthers nor the Tigers did themselves any favors Wednesday night, with Pittsburgh’s home loss being the costlier of the two defeats.
Mar 4, 2015, 11:59 PM EST
All of Wednesday’s relevant bubble info can be found right here.
Joe O’Shea’s off-balance three-pointer forces overtime in Bryant’s double OT win over Sacred Heart (VIDEO)
Mar 4, 2015, 11:34 PM EST
Thanks to O’Shea the Bulldogs advanced to the NEC semifinals, where they’ll take on Robert Morris.
Mar 4, 2015, 11:22 PM EST
That didn’t take long.
Mar 4, 2015, 9:38 PM EST
Colson and Demetrius Jackson scored 11 second-half points apiece in Notre Dame’s win at Louisville.
Mar 4, 2015, 9:03 PM EST
D’Angelo Russell scored 28 to lead the Buckeyes, but none of his points were wilder than the two scored by Thompson on this play.
Mar 4, 2015, 5:59 PM EST
Kentucky head coach John Calipari is one of 15 coaches still in contention for this honor.
Mar 4, 2015, 5:13 PM EST
Kaminsky is one of five seniors on the list, and Gonzaga is the only program with two representatives.
Mar 4, 2015, 4:20 PM EST
With the higher seeds hosting in the first three rounds of the Postseason NIT, the four one-seeds could potentially not leave campus before the semifinals at Madison Square Garden.
Mar 4, 2015, 3:40 PM EST
The most recent title odds from Bovada.
Mar 4, 2015, 2:25 PM EST
There are a lot of big bubbles games tonight.
Mar 4, 2015, 1:26 PM EST
These are the small league favorites that can win a game in the NCAA tournament.
Mar 4, 2015, 11:51 AM EST
Hank Gathers died on the court during the WCC tournament.
Mar 4, 2015, 10:42 AM EST
Perry Ellis suffered a nasty looking knee injury last night.
Mar 4, 2015, 10:15 AM EST
I’ve never seen this happen before.
Mar 4, 2015, 9:41 AM EST
Justin Anderson has been out for more than three weeks after fracturing a finger.
Mar 4, 2015, 9:00 AM EST
Two strong teams enter the Valley Conference Tournament with numerous others trying to enter the frame.
Mar 4, 2015, 12:26 AM EST
Kentucky is learning how to win games when they don’t play well. That’s scary.
Mar 3, 2015, 11:58 PM EST
No. 9 Kansas topped No. 20 West Virginia but now the Jayhawks must worry about the health of Perry Ellis.
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