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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Aug 29, 2015, 9:04 PM EDT
Michigan State scheduled games against three national teams preparing for next month’s Eurobasket championships (Russia, Italy and Georgia).
Aug 29, 2015, 6:50 PM EDT
According to head coach Ray Harper, Kristaps Gluditis was regarded as one of the top shooters in Europe.
Aug 29, 2015, 4:39 PM EDT
Tillie is a skilled forward who will have the chance to contribute immediately in 2016-17 due to the eventual losses of Kyle Wiltjer and Przemek Karnowski (both are seniors this season).
Aug 29, 2015, 1:30 PM EDT
Theo Pinson makes a bold statement and backs it up by burying a tough shot.
Aug 29, 2015, 12:15 PM EDT
Washington is losing another player as the team only returns two scholarship players from last season.
Aug 29, 2015, 10:45 AM EDT
Michigan received some positive news as a key member of the 2014-15 season returned to the floor.
Aug 29, 2015, 9:15 AM EDT
Seventh Woods still has plenty of highlight plays up his sleeve.
Aug 28, 2015, 11:30 PM EDT
Friday was photo day in Lawrence.
Aug 28, 2015, 9:30 PM EDT
The Spartans are now 1-1 on the trip.
Aug 28, 2015, 8:15 PM EDT
It’s Joey van Zegeren’s first year with the Northwestern program.
Aug 28, 2015, 6:30 PM EDT
Stanford falls to 1-1 on the foreign tour.
Aug 28, 2015, 5:19 PM EDT
The ex-Oklahoma commit decides to state in-state.
Aug 28, 2015, 4:22 PM EDT
Last week, 24 of the best high school basketball players participated in the 10th annual event.
Aug 28, 2015, 3:24 PM EDT
Three of Jordan Bohannon’s older brothers have played Division I college basketball, but he’s the first to pick their father’s alma mater.
Aug 28, 2015, 1:49 PM EDT
During his first bout with the disease Smith suffered cardiac arrest and lapsed into a coma that lasted for three days.
Aug 28, 2015, 12:54 PM EDT
The team many expect to be a national title contender has a new court to play on this season.
Aug 28, 2015, 11:20 AM EDT
Crean addressed the recent off-court issues at a school event in Indianapolis.
Aug 28, 2015, 10:15 AM EDT
And the toss was a solid one as well.
Aug 28, 2015, 9:00 AM EDT
Herard has scheduled official visits to three of the five remaining schools on his list.
Aug 27, 2015, 9:45 PM EDT
The 6-foot-6 Canadian averaged 9.1 points and 3.0 rebounds per game last season.
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