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USA Gymnastics CEO Steve Penny resigns amid scandal

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Steve Penny resigned as president of USA Gymnastics on Thursday following intensified pressure on the organization for its handling of sex abuse cases.

The resignation came a week after the United States Olympic Committee’s board recommended to USA Gymnastics chairman Paul Parilla that Penny should step down. Penny offered his resignation during a previously scheduled board meeting on Thursday.

“My decision to step aside as CEO is solely to support the best interests of USA Gymnastics at this time,” Penny said in a statement.

Penny joined USA Gymnastics in 1999 and was named the organization’s president in 2005, overseeing one of the greatest runs in Olympic history. Led by national team coordinator Martha Karolyi, the women’s program has become a dominant force, producing each of the last four Olympic all-around champions and team golds in 2012 and 2016.

The success turned gymnasts like Simone Biles, Gabby Douglas, Nastia Liukin and Shawn Johnson into stars and made USA Gymnastics a magnet for big-time corporate sponsors who wanted to be aligned with its healthy, winning image.

That image took a serious hit in recent months following an investigation by the Indianapolis Star that portrayed USA Gymnastics as slow to act when it came to addressing allegations of sexual abuse by a team doctor and coaches at member gyms across the country.

“The Board believes this change in leadership will help USA Gymnastics face its current challenges and implement solutions to move the organization forward in promoting a safe environment for its athletes at all levels,” Parilla said in a statement.

Last fall, Jamie Dantzscher, a member of the 2000 Olympic team, filed a civil lawsuit in California against USA Gymnastics and former team doctor Larry Nassar.

The lawsuit claims Nassar — who worked for the organization on a volunteer basis for nearly 30 years before being dismissed in the summer of 2015 — sexually groped and fondled the gymnasts as teenagers. Subsequent lawsuits have followed, including some that name Penny, Karolyi and her husband Bela as co-defendants because they “had knowledge of inappropriate conduct and molestations committed by (Nassar) before and during his employment, yet chose to allow him to remain unsupervised where he sexually abused plaintiff.”

Martha Karolyi retired last August and sold the training gyms at the Karolyi Ranch north of Houston to USA Gymnastics.

Nassar was fired by USA Gymnastics after Penny heard of an athlete’s concerns about Nassar’s conduct and went to federal authorities. The organization initially claimed it notified the authorities immediately but amended its timeline last month, indicating it conducted its own investigation during a five-week span before reporting Nassar to the FBI. Nassar is currently in prison in Michigan, where he worked for decades at Michigan State University before being let go last fall. He faces charges in both the state and federal system.

USA Gymnastics hired a former federal prosecutor last fall to conduct an extensive review of the organization’s policies in regards to potential sexual misconduct. The report by Deborah J. Daniels is expected sometime in the spring or early summer.

The gregarious Penny — whose booming voice and penchant for wearing eye-catching shoes during big events made him stand out in a sea of gymnasts — has denied any wrongdoing and the USA Gymnastics board of directors had remained supportive throughout the firestorm.

That didn’t stop the USOC from sending recommendations to USA Gymnastics Thursday. While the USOC does not have official authority to remove heads of national governing bodies, it can apply pressure by threatening to without funding. The USOC gives USA Gymnastics a cash grant of nearly $2 million annually.

Pressure also has been building within the gymnastics community. International Gymnastics Camp, a summer camp located in Stroudsburg, Pennsylvania, announced last week it was pulling its sponsorship of the organization until “USA Gymnastics must become the leading governing body in child safety considerations including National Team programs and club programs alike,” camp director Brent Klaus wrote in an open letter on the camp’s web site.

Penny’s departure is not enough for some of the women who have filed suit against Nassar and the organization. Attorney John Manly, who is representing more than 70 women currently suing Nassar and USA Gymnastics, issued a letter to USOC chairman Larry Probst this weekend asking the USOC to de-certify USA Gymnastics.

The letter pointed to the Ted Stevens Amateur Sports Act, a federal law that guarantees athletes the right to compete without discrimination. The letter pointed to misconduct by coaches as proof that USA Gymnastics “maternally inhibits these women’s ability to participate in their sport.”

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MORE: Liukin ‘completely shocked’ by allegations

USA Hockey to start reaching out to potential replacement players

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USA Hockey will begin reaching out to “alternate players” to determine their interest in playing for the U.S. at the women’s world championship next week amid a potential boycott by its national team.

The contact is taking place in the event a resolution cannot be reached between USA Hockey and the women’s national team in a wage dispute.

“It’s important for everyone to understand clearly that our objective is to have the players we named as the U.S. women’s national team be the ones that compete in the world championship,” said Dave Ogrean, executive director of USA Hockey, in a statement. “Productive conversations have taken place this week and are ongoing in our collective efforts to reach a resolution.”

The alternate players are in the professional NWHL and college, according to USA Today, a report that USA Hockey would not confirm.

U.S. captain Meghan Duggan has said every player in the U.S. national team player pool, plus under-18 national team players, committed to not playing at worlds unless the wage dispute is resolved.

The world championship tournament starts March 31 in Plymouth, Mich.

As of Thursday evening, no resolution has come between USA Hockey and its women’s national team. They met formally on Monday for more than 10 hours, with both sides calling it productive.

Neither side has said when its next scheduled meeting will take place.

On Tuesday, USA Hockey said it postponed a pre-worlds camp that was to run through next Tuesday in Traverse City, Mich., and canceled a scheduled Friday exhibition against Finland.

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MORE: NHL asked for decision on Olympics by end of April

NHL asked for decision on Olympics by end of April

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International Ice Hockey Federation President Rene Fasel tells The Associated Press he needs to know by the end of April whether NHL players will be cleared to play in the South Korea Olympics next year.

NHL team owners have made it clear they don’t want to stop their season again for the Winter Games and put their stars at risk of injury. The reluctance has come up before and yet the NHL has participated in the Olympics since 1998. This time, however, there seems to be an impasse.

The head of the NHL Players Association, Donald Fehr, says the players want to participate and hopes the league will take advantage of the chance to market the game in Asia.

However, NHL Deputy Commissioner Bill Daly says without “material change to the current status quo, NHL players will not be participating in the 2018 Winter Olympics.”

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MORE: 2018 Olympic hockey groups set