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

Too early to say whether virus threatens Olympics, WHO says

Getty Images
2 Comments

GENEVA (AP) — Despite a virus outbreak spreading from China, a top World Health Organization official said Tuesday it’s much too soon to say whether the Tokyo Olympics are at risk of being cancelled or moved.

Tokyo organizers and the International Olympic Committee have repeatedly said they have no contingency plans for the July 24-Aug. 9 Summer Games since the WHO declared a global health emergency last month.

The U.N. agency’s emergencies program director, Michael Ryan, said Tuesday the sporting event was “way too far” away to consider giving advice that would affect Tokyo’s hosting of the Olympics.

“We are not there to make a decision for that,” Ryan told The Associated Press on the sidelines of a news conference at WHO headquarters.

Geneva-based WHO has been in regular contact with the IOC in nearby Lausanne since the virus known as COVID-19 emerged in December.

“We don’t give them judgments,” Ryan said. “We assist them with their risk assessment. We will be working closely with them in the coming weeks and months.”

The death toll in mainland China due to the virus rose to almost 1,900 on Tuesday, with more than 72,000 confirmed cases.

The outbreak has caused numerous sports events in China to be canceled, postponed, or moved, including qualifying events for the Tokyo Olympics.

Chinese athletes and teams have also been unable to travel for some competitions. China sent a team of more than 400 athletes to the Rio Olympics. It won 70 medals, including 26 gold, to place second in total medal standings.

Around 11,000 athletes and many more team coaches and officials from more than 200 national teams are expected in Japan for the Olympics.

Japan has experienced the most significant outbreak of the virus outside of China, on the cruise ship Diamond Princess docked in quarantine at Yokohama in Tokyo Bay.

During a 14-day isolation that ends Wednesday, 542 cases have been identified among more than 3,700 passengers and crew.

OlympicTalk is on Apple News. Favorite us!

MORE: Tokyo Marathon limited to elite runners due to coronavirus

For Mike Eruzione, Al Michaels, it’s no miracle that 1980 Olympics endure

Leave a comment

Mike Eruzione has been reminded on a daily basis about the Miracle on Ice for nearly four decades. While playing celebrity golf tournaments. At speaking engagements. Or that time he auctioned his jersey and stick from the Soviet game to a 9-year-old boy named Seven.

Eruzione, now 65, likes to open conversations with one anecdote about meeting strangers, which he repeated in a call with reporters last week.

“The stories I hear, 40 years later, it’s depending on their age — I remember where I was when Kennedy was assassinated, I remember where I was on 9/11. I remember where I was when the Challenger blew up. And I remember where I was when we won,” Eruzione said. “And I always say, ‘We? I didn’t know you were on the team.’

“But people felt a part of it. … It’s nice to know that people remember and share some great stories about what we did so long ago.”

The captain of the 1980 U.S. Olympic hockey team owns a last name that means “eruption” in Italian. Eruzione scored the decisive goal in the U.S.’ 4-3 win over the Soviet Union en route to a shock gold medal during the Cold War in Lake Placid, N.Y.

NBCSN airs a 30-minute special marking the 40th anniversary of the Miracle on Ice on Wednesday at 11:30 p.m. ET. It will feature a conversation between Olympic primetime host Mike Tirico and Al Michaels, the play-by-play voice of the game dubbed by Sports Illustrated the greatest sports moment of the 20th century.

Eruzione has grandchildren now. Three of them skate at the Mike Eruzione Center in his hometown of Winthrop, Mass.

“They don’t even know who Mike Eruzione is,” Eruzione said of the 5-, 6- and 7-year-olds, “but they know about the Miracle.”

All credit to the U.S. Olympic team of 20 players between ages 19 and 25, back when the NHL did not participate in the Olympics. The Soviets were essentially a team of professionals. The nation won the previous four Olympics and throttled the U.S. 10-3 in a pre-Olympic exhibition at Madison Square Garden.

Enter Michaels, calling hockey at the Lake Placid Winter Games alongside Hall of Fame goalie Ken Dryden. Michaels, then 35, said he was assigned the sport because he had the most hockey experience on the ABC Olympic talent roster — one game. He called the 1972 Olympic hockey final by himself.

Feb. 22, 1980: As the U.S. led the Soviet Union 4-3 and the final seconds ticked down, one word came to mind: miraculous.

“It got morphed into a question and quick answer, and away we went,” Michaels said.

Eruzione said he didn’t learn of Michaels’ call — “Do you believe in Miracles? Yes!” — until two weeks after the Olympics. He didn’t watch the game broadcast until years later.

“I never thought it was a miracle, but it was a catchy phrase and it sounded right,” Eruzione said, noting he preferred Michaels’ call in the final comeback win over Finland to clinch the gold: “This impossible dream comes true.”

Team members since gathered often — to light the 2002 Olympic cauldron in Salt Lake City, for fantasy camps in Lake Placid and for coach Herb Brooks‘ 2003 funeral. Eighteen of the 20 players are scheduled to reunite this weekend in Las Vegas.

Absent will be Mark Pavelich, who was jailed last year on assault charges and ruled mentally incompetent to stand trial. And Bob Suter, who died in 2014 of a heart attack at age 57.

It was Suter’s death that motivated Eruzione and others to commemorate the 35th anniversary together in Lake Placid. It was believed to be the first time all living players were together in Lake Placid since the 1980 Winter Games.

Eruzione said that the 2004 film “Miracle” introduced the team to a new generation. Now at many of his speeches, the majority of Eruzione’s audience was born after 1980.

“I’ll say, how many people watched the movie ‘Miracle,’ and almost everybody raises their hand,” he said. “So I think what the movie did for us as a team was kind of rejuvenated our team as far as people knowing who we were and what we are and what we were about.”

NFL coaches set up “Miracle” viewings for their teams before games. Michael Phelps watched it for motivation at the 2004 Athens Olympics. Phelps told relay teammates, “This is our time,” before they beat rival Australia. An ode to Brooks’ pregame speech before the Soviet game.

Michaels, whose 13-year-old grandson won an October hockey tournament in Lake Placid, said he watched “Miracle” last week for the first time in about a decade. He helped do voiceovers in production more than 15 years ago, though the original Lake Placid audio was used for his signature call.

“The great thing is, in a way, when you watch it back or you watch highlights back, you almost become like in the third person, like somebody else is doing this and announcing this game,” Michaels said. “I exult the way I think most of the country did and do when they see highlights of it. So it’s kind of an out-of-body experience in a way, but it’s a beautiful thing.”

After Eruzione shared his tale of strangers’ memories, Michaels added one of his own.

“One of my favorite stories is Mike Eruzione calling me maybe eight to 10 years ago and saying, ‘The greatest thing about this is every time I come home and maybe I’m a little down, I need a little pick-me-up, I’ll put the tape in,'” Michaels said. “‘Every time I shoot, the puck goes in. It will forever.'”

OlympicTalk is on Apple News. Favorite us!

MORE: Miracle on Ice reunion to include all but 2 players