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USA Gymnastics files for bankruptcy

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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.”

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Brooke Raboutou is first U.S. Olympic sport climbing qualifier

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Brooke Raboutou, 18, became the first American to qualify for the Tokyo Olympics in sport climbing by reaching Tuesday’s combined final at the world championships in Hachioji, Japan, USA Climbing confirmed.

She qualified ninth into that final.

Raboutou, the daughter of two world-class climbers who has competed since age 7, became the seventh American across all sports to qualify for the 2020 Olympics after three open-water swimmers, two modern pentathletes and a triathlete.

Olympic sport climbing will feature one set of medals per gender, the event combining three disciplines: lead, speed and bouldering.

From Tokyo 2020: Speed climbing pits two climbers against each other, both climbing a fixed route on a 15-meter wall at a 95-degree angle. Winning times are generally between five and eight seconds. In bouldering, climbers scale a number of fixed routes on a four-meter wall in a specified time without safety ropes. In lead climbing, athletes attempt to climb as high as possible on a wall measuring over 15 meters in height within a fixed time with safety ropes.

A nation can qualify up to two athletes per gender into Olympic sport climbing.

The sport debuted at the Youth Olympics in 2018 in Buenos Aires, but no Americans were entered.

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Danielle Williams cemented as world No. 1 hurdler in Birmingham

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The 100m hurdles has been one of the U.S.’ deepest events the last several years, but Jamaican Danielle Williams looks like the favorite at the world championships in early October.

Williams, who owns the world’s fastest time this year, easily beat world-record holder Kendra Harrison and Olympic champion Brianna McNeal at a Diamond League meet in Birmingham, Great Britain, on Sunday.

Williams crossed in 12.46 seconds despite hitting her knee on one hurdle, but still two tenths clear of Harrison, whose world record is 12.20. It marked Harrison’s first loss in nine meets this year and the first time a non-American has ever beaten her at a Diamond League stop.

It looked like Williams wouldn’t make it to worlds in Doha when she false started out of the Jamaican Championships. But the final was soon after strangely canceled, and Jamaican media reported last week that Williams, the 2015 World champion who failed to make the Rio Olympics, is eligible to be chosen next month by the federation.

The U.S. had at least the two fastest women in the world each of the previous six years. Then Williams re-emerged with a Jamaican record 12.32 on July 20.

The meet airs Monday on Olympic Channel: Home of Team USA at 4 p.m. ET and NBCSN at 7 p.m. ET. The Diamond League moves to Paris on Saturday.

In other events Sunday, Olympic 400m champion Shaunae Miller-Uibo overtook Brit Dina Asher-Smith and Jamaican Shelly-Ann Fraser-Pryce in the 200m in 22.24. Miller-Uibo extended her unbeaten streak to two years across all distances.

It appears Miller-Uibo will not be racing the 200m at worlds, given it overlaps with the 400m. She ranks third in the world this year at the shorter distance, trailing Jamaican Olympic champion Elaine Thompson, who clocked 22.00 on June 23 but was not in Sunday’s field. Miller-Uibo has ranked No. 1 at 400m four straight years.

Yohan Blake won the 100m in 10.07 seconds, holding off Brit Adam Gemili, who had the same time with a 2 meter/second tailwind. Blake, the second-fastest man in history with a personal best of 9.69, hasn’t been the same since suffering a series of leg injuries starting in 2013.

Sunday’s field lacked the world championships favorites — Americans Christian Coleman and Justin Gatlin, who clocked 9.81 and 9.87 on June 30.

Surprise U.S. champion Teahna Daniels placed third in her Diamond League 100m debut, clocking 11.24 seconds. The field lacked world championships favorites Thompson and Fraser-Pryce, who each ran 10.73 at the Jamaican Championships on June 21.

American record holder Ajeé Wilson won an 800m that lacked all three Rio Olympic medalists, who are barred from racing the event due to the IAAF’s new testosterone cap in middle distances. Wilson’s time, 2:00.76, was far off her 2019 world-leading time of 1:57.72 among eligible women.

Olympic and world heptathlon champion Nafi Thiam broke the Belgian long jump record twice, winning with a 6.86-meter leap. That ranks ninth in the world this year. The field lacked the last two Olympic champions, Americans Tianna Bartoletta and Brittney Reese.

A meeting of the last two Olympic pole vault champs went to Rio gold medalist Katerina Stefanidi of Greece, who cleared 4.75 meters in swirling wind. London 2012 champ Jenn Suhr was third but remains No. 1 in the world this year with a 4.91-meter clearance from March 30.

Croatian Sandra Perkovic, the 2012 and 2016 Olympic discus champion, lost her third straight Diamond League meet to start the season as she returns from injury. Perkovic, who placed third behind winner Cuban Yaimé Pérez, had not lost in back-to-back meets since returning from a six-month doping ban in 2011, according to Tilastopaja.org.

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