Moody’s revises NCAA credit outlook to negative

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The NCAA's credit outlook has been revised to negative by ratings agency Moody's as the governing body of college sports deals with an anti-trust lawsuit about the use of athletes' images and likenesses.

A federal judge in California is considering whether to certify a lawsuit by former UCLA basketball star Ed O'Bannon as a class-action suit. The lawsuit demands the Indianapolis-based NCAA find a way to cut players in on the billions of dollars earned from live broadcasts, memorabilia sales, video games and in other areas.

The report released Monday says: "The outlook change to negative reflects increasing litigation and regulatory risks that could potentially alter the NCAA's operations."

The NCAA said in a statement that its financial rating did not change and it "does not anticipate any substantive issues based on the Moody report."

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