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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

George Washington lands 5-foot-3 point guard

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George Washington landed a commitment from Darnell Rogers, a 5-foot-3 point guard, from Georgia on Tuesday night.

Jeff Goodman of ESPN reported the commitment.

Rogers is the son of Shawnta Rogers, the 5-foot-4 point guard who played for the Colonials from 1995-99, earning Atlantic 10 Player of the Year honors as a senior.

“My dad is an alum, and I have a family relationship with the coaching staff,” Darnell Rogers told ESPN. “Their starting point guard is leaving when I come in. It’s a great situation for me and I also love D.C.”

In July, during the Nike Peach Jam, you may have seen clips or photos of the diminutive floor general playing for CP3, alongside arguably the nation’s top recruit, Harry Giles. In 22 appearances with CP3 in the Nike EYBL, Rogers averaged 10.0 points, 3.4 assists and 2.0 rebounds per game.

By the time Rogers reaches campus, Joe McDonald and Alex Mitola will have both exhausted their eligibility, while Paul Jorgensen and Seton Hall transfer Jaren Sina will both be juniors.

He joins power forward Collin Smith in GW’s Class of 2016. The two commits are separated by 18 inches.

Louisville campus police reviewing escort allegations

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Louisville campus police now say they are reviewing allegations that a former men’s basketball staffer hired escorts to dance and have sex with recruits and players in a dormitory.

Katina Powell has alleged in a book released online over the weekend that former Cardinals director of basketball operation Andre McGee paid her $10,000 for dancers to perform 22 shows from 2010-14 at the players’ Billy Minardi Hall dormitory. The school reported those allegations to the NCAA and has launched an investigation.

“The University of Louisville Police Department, in consultation with the Louisville Metro Police Department and the Commonwealth’s Attorney’s Office, is reviewing allegations regarding the men’s basketball program,” University police chief Wayne Hall said Tuesday in a statement.

It was the first confirmation that police are looking into the allegations. When contacted last week, a campus police operator said they weren’t aware of the book allegations, and it was unclear at that time if an investigation had been launched.

Cardinals coach Rick Pitino has said that McGee denied Powell’s allegations.

McGee left in 2014 and is currently an assistant at Missouri-Kansas City, which has put him on paid leave.

Pitino said Saturday that he hasn’t read Powell’s book titled “Breaking Cardinal Rules: Basketball and the Escort Queen” and doesn’t plan to. The 104-page book was published by an affiliate of the Indianapolis Business Journal and is scheduled for hardcover release Oct. 12.

The woman said that she and three of her daughters, along with other women, danced and stripped for Louisville recruits and players and performed sex acts with them, according to the book. Powell, 43, also said McGee offered recruits alcohol at those parties.

Upon hearing of the allegations, Pitino said he did some investigating on his own before being told by the school’s compliance department not to talk to players. But the coach said he talked to other assistants about the allegations and all of them denied knowing of the activities outlined in Powell’s book.

“I’m going through 15 people who worked here, and not one person even had a premonition of something wrong,” Pitino said. “Not one person living in the dorm had even the slightest premonition. It just doesn’t make sense to me.”

Louisville has hired Chuck Smrt of the Compliance Group, which assists schools in NCAA cases, to review the allegations.

McGee left Louisville in 2014 to become an assistant at Missouri-Kansas City under Kareem Richardson, who was a Cardinals assistant from 2012-13. He was placed on paid administrative on Friday and has been unavailable for comment. McGee’s Louisville attorney, Scott Cox, didn’t comment because the investigation is ongoing.