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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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WATCH LIVE: Nathan Chen in U.S. Figure Skating Championships free skate

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Nathan Chen tries to become the first man to win four straight U.S. figure skating titles since 1988, live on NBC Sports on Sunday.

NBC Sports Gold streams live coverage of the men’s free skate for subscribers starting at 2:30 p.m. ET in Greensboro, N.C. NBC joins with TV coverage at 3.

LIVE STREAM: Men’s Free Skate — Gold | NBC | Skate Order

Chen, a 20-year-old Yale sophomore, is undefeated since placing fifth at the PyeongChang Olympics. He can become the seventh man since World War II to win four straight national titles.

Five of the previous six went on to earn Olympic gold, including Dick ButtonScott Hamilton and, most recently, Brian Boitano in 1988.

Chen carries a substantial 13.14-point lead from Saturday’s short program, where he landed two quadruple jumps on one week of full training following a flu bout.

The anticipated drama Sunday comes in the battle for silver and bronze medals and the last two world championships team spots.

Jason BrownAndrew TorgashevVincent Zhou and Tomoki Hiwatashi are separated by 8.78 points. Brown, the 2015 U.S. champion, and Zhou, the 2019 World bronze medalist, are the only men in the field other than Chen with world team experience.

Key Skate Times
5:01 p.m. (ET) — Vincent Zhou
5:18 — Tomoki Hiwatashi
5:26 — Andrew Torgashev
5:35 — Nathan Chen
5:43 — Jason Brown

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NATIONALS: TV Schedule | Full Results

As a reminder, you can watch the events from the 2019-20 figure skating season 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.

Mikaela Shiffrin, with 66th World Cup win, moves one shy of career dream

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Mikaela Shiffrin has said one of her career dreams is to win in every discipline in one season. She is now one victory shy of realizing it.

Shiffrin earned her 66th World Cup victory — and her second in three days — at a super-G in Bansko, Bulgaria, on Sunday.

She prevailed by .29 of a second over Italian Marta Bassino and .70 over Swiss Lara Gut-Behrami. Gut-Behrami, the last skier other than Shiffrin to win a World Cup overall title back in 2016, earned her first podium in exactly one year.

Full results are here.

“Perfect weekend for me,” said Shiffrin, who moved one shy of recently retired Austrian Marcel Hirscher for third place on the World Cup career wins list. “The whole team is excited about the whole weekend, but especially today.”

She is en route to a fourth straight World Cup overall title. And she is a combined victory away from wins in all five disciplines in one season. Only Marc GirardelliPetra KronbergerJanica Kostelic and Tina Maze have done it.

“The thing that I’m most proud of right now is that I know how to win in slalom, [giant slalom], super-G and downhill, which I never expected that would really happen,” she said.

Shiffrin struggled with confidence during a winless stretch in early January, trying not to compare herself to last season, when she won a record 17 times. She still leads the men’s and women’s tours with six victories this season, a little more than halfway through.

“Every race is such a big fight, and I haven’t been the one on top of this fight every time,” she said. “Certainly I’ve been like sometimes the expectations that I have or that other people might have, I’m not quite living up to that. Sometimes it’s hard not to feel like I’m failing sometimes, even though this is still just an incredible season.”

There are two combined races left this season for Shiffrin to achieve the dream — Feb. 23 in Switzerland and March 1 in Italy. While combined — mixing a speed run and a technical run — might seem perfect for Shiffrin, she has one victory in four starts in the discipline between the World Cup and Olympics.

And Shiffrin is careful about her race schedule. She is undecided on entering a downhill and super-G next weekend at the 2014 Olympic venue in Russia.

“After this weekend my brain is a little bit dead,” she joked.

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