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NCAA’s credit outlook now negative, in part because of Ed O’Bannon case

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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

Rick Pitino: ‘We should be penalized … but not this team’

Rick Pitino
(AP Photo/Timothy D. Easley)
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One of the biggest storylines of Saturday’s college basketball schedule had everything to do with a team that no longer matters in the championship picture.

Less than 24 hours after being informed that the school would be imposing a postseason ban that will leave the Cardinals out of the ACC and NCAA tournaments, No. 19 Louisville tipped off against Boston College, and they did so without leading scorer Damion Lee, who is battling a knee issue.

How would the team respond to the decision — the despicable, shameful decision — that the university’s president made?

Well, it seems.

The Cardinals jumped out to a 19-2 lead in the first eight minutes and cruised to a 79-47 win over an overmatched Boston College team in the Yum! Center.

And head coach Rick Pitino, after the quote, said exactly what everyone is thinking.

“We should be penalized, no question about it,” he said. “But not this team. But the NCAA didn’t make that decision. We made that decision.”

He’s totally right. The school sacrificed the season — and the only shot that a pair of fifth-year seniors would get to play in the NCAA tournament — to protect the school, the brand and the bottom-line moving forward. Like I said earlier, it’s despicable.

But credit the Cardinals for responding.

Because they still have something on the line. They’re just a game out of first place in the ACC, and while an ACC regular season title isn’t a shot to play in the ACC or NCAA tournament, it’s still a banner that would probably mean more to Damion Lee and Trey Lewis than any league title has meant to a Louisville player before.

Oklahoma State without Jawun Evans, questionable moving forward

Oklahoma State guard Jawun Evans (1) goes up for a shot between Kansas forward Jamari Traylor (31) and forward Perry Ellis (34) in the second half of an NCAA college basketball game in Stillwater, Okla., Tuesday, Jan. 19, 2016. Oklahoma State won 86-67. (AP Photo/Sue Ogrocki)
(AP Photo/Sue Ogrocki)
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Oklahoma State’s star point guard was not in the lineup on Saturday against No. 13 Iowa State.

Evans injured his shoulder in the Cowboys’ loss at Texas Tech on Wednesday and was ruled out of Saturday’s game.

According to the school, his official status moving forward is questionable. The Pokes are just 11-11 on the season and likely need to earn the Big 12’s at-large bid to get into the NCAA tournament. It makes sense to let him get healthy.

Evans was averaging 12.9 points, 4.9 assists and 4.4 boards this season, but he had been arguably the best point guard in the Big 12 during league play, averaging 15.6 points and 5.6 assists.