USA Gymnastics
Getty Images

USA Gymnastics files for bankruptcy

2 Comments

USA Gymnastics is turning to bankruptcy in an attempt to ensure its survival.

The embattled organization filed a Chapter 11 bankruptcy petition on Wednesday in an effort to reach settlements in the dozens of sex-abuse lawsuits it faces and to avoid its potential demise at the hands of the U.S. Olympic Committee.

USA Gymnastics filed the petition in Indianapolis, where it is based. It faces 100 lawsuits representing over 350 athletes in various courts across the country who blame the group for failing to supervise Larry Nassar, a team doctor accused of molesting them. Nassar, 55, worked at USA Gymnastics and Michigan State University for decades. He is serving effective life sentences for child porn possession and molesting young women and girls under the guise of medical treatment.

Kathryn Carson, the recently elected chairwoman of USA Gymnastics’ board of directors, said the organization’s goal is to speed things up after mediation attempts failed to gain traction.

“Those discussions were not moving at any pace,” Carson said. “We as a board felt this was a critical imperative and decided to take this action.”

The filing does not affect the amount of money available to victims, which would come from previously purchased insurance coverage, she said. Carson said the insurance companies “are aware we’re taking this action and our expectation is they will come to the table and pay on our coverage.”

Carson added: “This is not a liquidation. This is a reorganization.”

John Manly, an attorney representing dozens of women who have pending lawsuits against USA Gymnastics, chastised the organization for continuing to “inflict unimaginable pain on survivors” and encouraged law enforcement officials to “redouble” their investigative efforts.

“Today’s bankruptcy filing by USA Gymnastics was the inevitable result of the inability of this organization to meet its core responsibility of protecting its athlete members from abuse,” Manly said in a statement. “The leadership of USA Gymnastics has proven itself to be both morally and financially bankrupt.”

USA Gymnastics insists that’s not the case, stressing that the filing is based on legal expediency, not fiscal distress.

While Carson acknowledged that sponsorship is down since the first women came forward against Nassar in the fall of 2016, she described the financial condition of USA Gymnastics as “stable.”

USA Gymnastics reported assets in a range of $50 million to $100 million and a similar range of liabilities, with 1,000 to 5,000 creditors. The organization said its largest unsecured creditor is former president and CEO Steve Penny, who is owed $339,999.96. USA Gymnastics is disputing Penny’s claim, though attorney Cathy Steege declined to get into the specific nature of the dispute.

Penny resigned under pressure from the USOC in March 2017. Two other presidents — Kerry Perry and former U.S. Rep. Mary Bono — have followed in what has become a revolving door amid the organization’s hierarchy.

It’s that chaos at the top that led the USOC to initiate the process of removing USA Gymnastics as the sport’s national governing body at the Olympic level — a step that’s taken only under the most extreme circumstances.

In an open letter to the gymnastics community in November, USOC CEO Sarah Hirshland said “you deserve better,” and that the challenges facing USA Gymnastics were more than it was capable of overcoming as currently constructed.

Carson said the legal maneuvering Wednesday delays the USOC’s efforts to strip its designation as a national governing body.

“We always have a dialogue going with them and intend to make it clear with them we have a lot to talk about and we want to keep that going,” she said.

USOC spokesman Patrick Sandusky said the committee is reviewing the filing’s potential effect on decertification. “Financial stability and viability are essential for a national governing body to operate in the best interests of the athletes,” Sandusky said.

USA Gymnastics believes bankruptcy protects it from having opportunities or assets taken away by a debtor. Carson acknowledged that being a national governing body “is a big part of how we raise our revenue.”

Carson, who replaced Karen Golz as chairwoman last week, said she accepted the position because she believes in the direction of USA Gymnastics, which she said doesn’t need money but rather time.

“We think we’re changing the dynamic and we certainly believe that we will try to remain the NGB,” Carson said. “To be clear, it is our lawyers’ firm belief that the bankruptcy will automatically stay (decertification) … and we will work with the USOC to regain credibility.”

Nicholas Georgakopoulos, a bankruptcy expert and law professor at the Indiana University’s Indianapolis campus, said USA Gymnastics is “hoping for a miracle” with its legal maneuvering.

“The USOC says you violated this relationship, here are the consequences and USA Gymnastics is saying it filed for bankruptcy, there are no consequences,” Georgakopoulos said. “This is like a gambling addict who goes to the casino and gambles every day and one day the casino says you can’t come anymore, you’ve lost too much, and addict says, I filed for bankruptcy, you can’t stop me from coming to the casino.”

If the USOC wants to go forward with decertification, it must now go to court.

USA Gymnastics has no timetable on how long the bankruptcy process will take and did not offer a ballpark on how much it expects to pay in settlements. Its doors, however, remain open for business.

“We are continuing to pursue all aspects of our current operating model,” Carson said. “This affords us an opportunity to reorganize as well as resolve the claims with the survivors.”

OlympicTalk is on Apple News. Favorite us!

MORE: Olympic medalist no longer on USA Gymnastics suspended list

Three questions with Tarah Kayne and Danny O’Shea before the U.S. Championships

Getty Images
Leave a comment

2016 U.S. national champions Tarah Kayne and Danny O’Shea changed coaches to kick off the new season. Now under Dalilah Sappenfield in Colorado Springs, the oft-injured team said they’re healthier than ever heading into the U.S. Championships this weekend in Detroit.

The 2018 Four Continents Champions got off to a “slow start” this year, with a seventh place finish a silver medal on the Challenger Series. On the Grand Prix series, though, they had a fifth place finish in Japan and a silver medal-performance in France. It was their first-ever Grand Prix medal. They told reporters on a media teleconference ahead of nationals that both of their Grand Prix performances “showed growth.” Since then, they’ve spent time drilling on their programs.

Here’s what we learned from their teleconference:

1. They’ve made huge strides from where they are today compared to where they were this time before nationals a year ago.

Tarah Kayne: “There’s a huge difference for me specifically mentally and physically. Last year I was coming off of a right knee surgery where I had my patella tendon reconstructed. For nationals, we were just getting started back into competitive shape. We had maybe a handful of free skate run-throughs under our belts going into nationals. I was just starting to get comfortable doing throws again. We were purposefully trying to make our throws smaller to cut back the impact on my right knee, and to make it as safe as possible.”

“Now this season, I am feeling so much healthier and stronger. We’re making our throws bigger again! Which is a great feeling for me to feel comfortable and to be in that place physically. And also mentally to feel safe doing that. A huge part of that has been being at the Olympic Training Center in Colorado Springs and training under Dalilah who I find to be very empowering.”

Danny O’Shea: “We’re healthy. That’s been the goal for a very long time. We have been elusive for a lot of our career so far. Feeling healthy going into nationals is a very comforting place to be in. Not having to scramble, rely purely on mental toughness to overcome what may be a lack of physical training is a very nice place to be in.

2. They feel like they got a fresh start under their new coach.

TK: “With Dalilah, we started from scratch. We just came to her and let her mold us. Whatever she wanted us to do, we did. We didn’t question things. We didn’t say, ‘that’s not how we do things, how we’re used to.’ We just let her change whatever she wanted to change because we didn’t want to get the same results we have always gotten. We wanted to improve. We wanted to be bigger; we wanted to be better; we wanted to be faster.”

DO: “When you’re with a coach for seven years as a team, things are second-nature. There’s been definite differences in what we’ve been doing throughout the year. Some took some getting used to. Some were very comfortable right off the bat. Overall, it’s been a positive for us and that we’re in a very good place physically right now, which is helping us be able to train hard and keep pushing throughout the year.”

3. Kayne and O’Shea don’t want anyone else to miss out on the Olympics (like they did, as 2018 Olympic alternates) or the world championships. And with only one U.S. pair spot at Worlds this year, they know what’s at stake.

DO: “It’s on our minds.”

TK: “It’s a hard job. It’s a hard position to be in. I wish I wasn’t in this position. I would love to be walking into this with three spots and have a little bit of wiggle room… it’s a job. I have to go and do my job at nationals to get to Worlds. And then I have to do my job at Worlds to make sure no one else is in this position again… We’re capable at this place and time to accomplish that goal for ourselves and for the United States.”

DO: “We have always gone into nationals trying to skate our best, but this year we know we have to go and do that and we have to win. You wanna go into every competition to try and be your best, but with the way things are, we’re going in to win nationals and make that world team again, and go to Worlds and start turning this around. We don’t want to have one spot for Worlds or one spot for the Olympics any longer.”

MORE: Three questions with Alexa Scimeca Knierim and Chris Knierim

As a reminder, you can watch the U.S. Championships live and on-demand with the ‘Figure Skating Pass’ on NBC Sports Gold. Go to NBCsports.com/gold/figure-skating to sign up for access to every ISU Grand Prix and championship event, as well as domestic U.S. Figure Skating events throughout the season. NBC Sports Gold gives subscribers an unprecedented level of access on more platforms and devices than ever before.

OlympicTalk is on Apple News. Favorite us!

U.S. junior champions crowned in ladies’ and men’s events

Jay Adeff/U.S. Figure Skating
Leave a comment

Gabriella Izzo is the newest junior ladies’ national champion, crowned this week at the U.S. Championships in Detroit. Junior ladies’ national champions of the past include eventual Olympians Mirai Nagasu, Gracie Gold, Polina Edmunds and Bradie Tennell.

Izzo had a commanding lead after the short program, with 60.97 points, where she pulled off her first-ever triple Lutz, triple loop combination in competition. (However, it was deemed under-rotated.) Regardless, her 111.45 points in the free skate combined for 172.42 points and the gold medal.

Audrey Shin, who actually won the free skate by just over a point, earned the silver medal with 165.61 points. Emilia Murdock took home the bronze with 154.48 points.

On the junior men’s side, Ryan Dunk rebounded from second after the short program to win the event. His 132.85-point free skate was enough to crack the 200-point overall score, the only man in the field to do so, and win the gold.

Men’s junior champions include eventual world champion Nathan Chen (twice) as well as Olympians Vincent Zhou and Jason Brown.

Dinh Tran finished second with 196.03 points after a fourth-place short program. Joonsoo Kim, who lead after the short program on Tuesday, ended up with the bronze medal with 187.95 points.

NBC Sports Gold’s “Figure Skating Pass” will live stream each junior competition and replays will also be available on-demand. Check out the full schedule and live streaming information here.

The junior rhythm dance took place earlier Wednesday. Siblings Caroline and Gordon Green lead the field with 70.82 points, while Avonley Nguyen and Vadym Kolesnik are second with 65.92 points. The brother-sister team of Oona and Gage Brown are in third with 63.34 heading into Friday’s junior free dance.

Also Wednesday, Laiken Lockley and Keenan Prochnow took the lead in the junior pairs’ short program. The junior pairs’ free skate is Thursday. Kate Finster and Balazs Nagy are second, followed by Isabelle Martins and Ryan Bedard in third.

MORE: Full streaming schedule

As a reminder, you can watch the junior and senior U.S. Championships live and on-demand with the ‘Figure Skating Pass’ on NBC Sports Gold. Go to NBCsports.com/gold/figure-skating to sign up for access to every ISU Grand Prix and championship event, as well as domestic U.S. Figure Skating events throughout the season. NBC Sports Gold gives subscribers an unprecedented level of access on more platforms and devices than ever before.

OlympicTalk is on Apple News. Favorite us!