NCAA’s credit outlook now negative, in part because of Ed O’Bannon case
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 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.
The NCAA is currently staring down $40 million of debt taken from 2005-2010.
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