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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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IOC group proposes Olympic ‘host’ can be multiple countries

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International Olympic Committee members will decide next month whether to tweak the definition of an Olympic host to make it clear that it does not necessarily refer to a single city but can also mean multiple cities, regions and even countries, IOC President Thomas Bach said Wednesday.

“It’s not an encouragement to spread the Games out as much as possible,” Bach said in announcing the IOC’s executive board approved the measure. “It may be preferable to have a region as a signatory or an additional signatory of the host city contract rather than just a city, and therefore, we wanted to enjoy this flexibility. This, on the other hand, does not change our vision, our request and our focus on having not only an Olympic Village, but to have an Olympic center.”

It’s one of six proposed changes by a working group chaired by Australian IOC member John Coates to examine the bid process. Another is to make the timing of Olympic host city elections more flexible. Typically, hosts are elected seven years before the Games, though two years ago an exception was made in the double awarding of the 2024 and 2028 Games to Paris and Los Angeles.

Bach repeated that the proposals are “to avoid producing too many losers as we had it in the past candidature procedures.”

The IOC previously said in 2014, in announcing Agenda 2020, that it “will allow events held outside the host city or, in exceptional cases, outside the host country, notably for reasons of geography and sustainability.”

This shift manifests in Stockholm’s 2026 Winter Olympic bid plan to have sliding sports in Sigulda, Latvia, home of the nearest existing track for bobsled, luge and skeleton, rather than building a costly new track in Sweden.

IOC members will vote to choose the 2026 Winter Games host next month. The finalists are Stockholm and a joint Italian bid of Milan and Cortina d’Ampezzo, after five other potential candidates were dropped for various reasons.

There is precedent for events held far from the Olympic host city. In 1956, Melbourne held the Summer Games and had equestrian events in Stockholm due to quarantine laws in Australia. Similarly, equestrian at the 2008 Beijing Games was held in Hong Kong.

Soccer matches are often held in cities across the host country. Recent Winter Olympics have had mountain events in a different city or area than arena events.

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IOC board recommends AIBA suspension, boxing stays in Olympics

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The International Olympic Committee executive board recommended that AIBA has its recognition as boxing’s international federation suspended but that the sport remains on the Olympic program at the 2020 Tokyo Games.

An IOC decision on the recommendation will be made next month. The IOC created a group to organize 2020 Olympic boxing qualifying and competition if AIBA will not be allowed to run it.

“We want to ensure that the athletes can live their dream and participate in the Olympic Games Tokyo 2020 while drawing the necessary consequences for AIBA,” IOC president Thomas Bach said in a press release. “At the same time, we offer a pathway back to lifting the suspension, but there needs to be further fundamental change.”

The IOC said in October that boxing’s place in the Olympics was “under threat” after being introduced at the 1904 St. Louis Games and held at every Games since except Stockholm 1912.

In November, the IOC ordered an inquiry into AIBA, which has been in financial turmoil, faced claims of fixed bouts at the Rio Games and elected a president linked to organized crime.

That president, Uzbek Gafur Rakhimov, stepped aside in March to let an interim leader take charge but said he was not resigning. Rakhimov is on a U.S. Treasury Department sanctions list for suspected links to an organized crime group in former Soviet Union republics involved in heroin trafficking. He denies any wrongdoing.

“Serious governance issues remain, including breaches of the Olympic Charter and the IOC Code of Ethics regarding good governance and ethics, leading to serious reputational, legal and financial risks for the IOC, the Olympic Movement and its stakeholders,” the inquiry committee concluded. “AIBA has been unable to demonstrate a sustainable and fair management of refereeing and judging processes and decisions, increasing the lack of confidence that athletes can have in fair competitions.”

The Associated Press contributed to this report.

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