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
Mar 27, 2015, 1:15 PM EDT
Nigel Hayes has become a national sensation this tournament.
Mar 27, 2015, 12:43 PM EDT
Two transfers in one week is not a good thing.
Mar 27, 2015, 11:20 AM EDT
It’s pretty cool to see this process in action.
Mar 27, 2015, 10:31 AM EDT
Forbes spent two years as an assistant at Wichita State.
Mar 27, 2015, 9:08 AM EDT
Tennessee has parted ways with head coach Donnie Tyndall after only one season.
Tourney Snacks: Kentucky, Notre Dame win in Midwest; Arizona, Wisconsin advance to set up Elite Eight rematch
Mar 27, 2015, 1:45 AM EDT
The Elite Eight will feature a rematch in the West Regional between Arizona and Wisconsin and Kentucky battling Notre Dame in the Midwest Regional.
Mar 27, 2015, 1:00 AM EDT
Kentucky’s win also means that the Big 12 is down to one team: Oklahoma.
Mar 27, 2015, 12:59 AM EDT
Arizona played slightly better on both ends of the floor in the second half, and they’ll take on No. 1 Wisconsin as a result.
Mar 27, 2015, 12:48 AM EDT
If you are going to talk, you better be able to back it up
Mar 27, 2015, 12:19 AM EDT
The schedule for Saturday has been released.
Mar 27, 2015, 12:11 AM EDT
Jalen Reynolds dunks everything he gets his hands on, it seems.
Mar 27, 2015, 12:06 AM EDT
No. 1 Kentucky looked completely dominant in an easy win over No. 5 West Virginia.
Mar 27, 2015, 12:03 AM EDT
This is nasty.
Mar 26, 2015, 9:59 PM EDT
After Dekker scored 15 points in the first half, Kaminksy scored 15 in the second half for the Badgers.
Mar 26, 2015, 9:24 PM EDT
It’s Notre Dame’s first Elite 8 since 1979.
Mar 26, 2015, 7:30 PM EDT
New Mexico is losing a wing.
Mar 26, 2015, 6:20 PM EDT
Dukes averaged 2.1 points in 7.2 minutes of action per game.
Mar 26, 2015, 5:35 PM EDT
Josh Jackson, the No. 1 player in the Class of 2016, is down to nine schools.
Mar 26, 2015, 4:24 PM EDT
Adam Smith averaged a team-high 13.4 points per game as a redshirt junior.
Mar 26, 2015, 3:13 PM EDT
This is a strong stance from the NCAA.
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