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.
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Oct 31, 2014, 2:00 PM EDT
Despite 29 wins (13 in conference play) Louisiana Tech missed out on the NCAA tournament. Michael White looks to change that this season, although, his team will have to go through the likes of UTEP and newcomer Western Kentucky, first.
Oct 31, 2014, 1:12 PM EDT
With the number of guards in the Kansas program, playing time was likely to be scarce for Conner Frankamp.
Oct 31, 2014, 12:45 PM EDT
Isaac Fotu’s part of the NCAA’s investigation into the program, and other schools have attempted to poach some of Hawaii’s remaining players.
Oct 31, 2014, 12:00 PM EDT
Virginia is coming off of a dual-ACC title and returns the majority of the key players from that team.
Oct 31, 2014, 11:37 AM EDT
No surprise that Kentucky’s on top. Also of note: No. 3 Wisconsin received more first-place votes than No. 2 Arizona.
Oct 31, 2014, 10:30 AM EDT
The Cincinnati transfer was expected to factor into a rotation that’s replacing five seniors from last season’s team.
Oct 31, 2014, 9:00 AM EDT
Is this team better than Philly?
Oct 30, 2014, 11:53 PM EDT
Quick action by construction workers ensured that it was declared ready for play two days after being flooded.
Oct 30, 2014, 10:41 PM EDT
Some officials are in hot water after compromising a system used by 20 different Division I conferences.
Oct 30, 2014, 8:58 PM EDT
Saint Louis adds more depth to its front court with this verbal commitment.
Oct 30, 2014, 7:30 PM EDT
I can do that.
Oct 30, 2014, 7:26 PM EDT
John Egbunu was an American Athletic Conference All-Freshman Team selection at USF last season.
Oct 30, 2014, 6:30 PM EDT
The Preseason Atlantic 10 Player of the Year is looking to lead VCU deep into March.
Oct 30, 2014, 5:55 PM EDT
Chris Clarke is a perfect fit for Donnie Tyndall.
Oct 30, 2014, 4:45 PM EDT
The Golden Griffins have to account for the loss of four starters from last season’s 21-win team.
Oct 30, 2014, 3:56 PM EDT
Feel free to take this as my challenge to you all.
Oct 30, 2014, 2:32 PM EDT
North Carolina should be a national title contender, but they do have some question marks.
Oct 30, 2014, 1:45 PM EDT
Dayton head coach Archie Miller spurned high-major programs to remain at Atlantic 10. He’s not the only one in the league happy with where they are.
Oct 30, 2014, 12:56 PM EDT
Pollard is looking to reignite his career at Houston this season.
Oct 30, 2014, 12:00 PM EDT
The Atlantic 10 is out to gain respect again this season from the rest of the college basketball world, a year after the league saw a record six teams selected for the NCAA tournament with one team reaching the Elite 8.
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- Mark Emmert calls UNC scandal ‘troubling’, ‘disturbing’, ‘shocking’ (2)