Moody's Downgrades NCAA Credit Outlook
Moody’s has downgraded the National Collegiate Athletic Association’s credit outlook to negative on account of a major lawsuit threatening the future finances of the NCAA, The Wall Street Journal reported. “Increased public discourse about the best interest of student-athletes combined with highly publicized litigation could destabilize the current intercollegiate athletic system and negatively impact the NCAA and its member universities," the Moody’s report said. The lawsuit in question is is currently awaiting class action certification. Led by former University of California at Los Angeles basketball player Ed O’Bannon, the lawsuit, which is currently awaiting class action certification, argues that current and former athletes are entitled to some of the revenue that universities, the NCAA and other parties make by promoting images of those students. An NCAA spokeswoman said she the association does not anticipate any "substantive issues" based on the Moody's report, as it is a long-term projection and the NCAA's financial rating did not change.
(Note: This headline and article have been updated from a previous version.)