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

Shelby Houlihan shatters American 5000m record

Shelby Houlihan
Getty Images
Leave a comment

Shelby Houlihan chopped 10.52 seconds off her own American 5000m record, clocking 14:23.92 at a Bowerman Track Club intrasquad meet in Portland, Ore., on Friday night.

Houlihan, who was 11th in the Rio Olympic 5000m, has in this Olympic cycle improved to become one of the greatest female distance runners in U.S. history.

She first broke Shannon Rowbury‘s American record in the 5000m by 4.47 seconds in 2018. In 2019, she broke Rowbury’s American record in the 1500m by 1.3 seconds in finishing fourth at the world championships in 3:54.99.

On Friday, Houlihan and second-place Karissa Schweizer both went under the American record. Schweizer, 24 and three years younger than Houlihan, clocked 14:26.34, staying with Houlihan until the winner’s 61-second final lap.

“I knew Karissa was going to try to come up on me and take the lead. She does that every time,” Houlihan told USATF.tv. “I had decided I was not going to let that happen.”

Houlihan improved from 41st to 12th on the world’s all-time 5000m list, 12.77 seconds behind Ethiopian Tirunesh Dibaba‘s world record.

OlympicTalk is on Apple News. Favorite us!

MORE: Usain Bolt says one man can bring him out of retirement

Can T.J. Oshie, other established Olympic hockey stars hold on for 2022?

T.J. Oshie
Getty Images
Leave a comment

T.J. Oshie will be 35 years old during the next Winter Olympics. Jonathan Quick will be 36. Now that the NHL is one key step closer to returning to the Winter Games, the question surfaces: which 2014 Olympians will have a difficult time returning to rosters in 2022?

Oshie was the last of the 14 forwards chosen for the U.S. Olympic team for Sochi, beating out Bobby Ryan and Brandon Saad, in part for his shootout prowess.

In group play against Russia, Oshie was memorably tapped by U.S. head coach Dan Bylsma six times in a shootout, including all five in the sudden-death rounds. Oshie beat Sergei Bobrovsky four times, including the game winner.

“After I went out for my third attempt, I figured I was going to keep going,” Oshie said, according to USA Hockey. “Each time I would look up to see what [Bylsma] had to say, and he would just give me a nod every time. I kind of started laughing toward shot five and six because it was getting kind of ridiculous.”

Oshie became known as “T.J. Sochi” on social media. President Barack Obama congratulated him on Twitter. The U.S. eventually lost to Canada in the semifinals and Finland in the bronze-medal game.

When the NHL chose not to send its players to the PyeongChang Winter Games, it may have spelled the end of Oshie’s Olympic career.

Consider that the oldest forward on the 2014 U.S. Olympic team was 29, six years younger than Oshie will be come 2022. A recent Olympic roster prediction from The Hockey Writers put Oshie in the “Just Missed Out” list.

NBC Sports NHL analyst Pierre McGuire has Oshie among the finalists for the last forward spots in his early U.S. roster prediction.

“I wouldn’t discount T.J. Oshie because shootout is still part of it,” McGuire said. “He still has his shootout moves, even though he’s not getting any younger.”

Quick, the unused third goalie in 2010, played 305 out of 365 minutes in net for the U.S. in Sochi. He was coming off a Stanley Cup in 2012 and en route to another one in 2014.

Since, he was sidelined by a knee injury that required surgery. He remains the Los Angeles Kings’ No. 1 goalie, which almost automatically puts an American in the Olympic roster discussion these days.

“Somebody like Jonathan definitely merits consideration just because of his achievement level over time, but I think he’d be the first person to tell you injuries have definitely affected him,” McGuire said of Quick, looking to become the second-oldest U.S. goalie to play in the Olympics after Tom Barrasso in 2002. “It’s not going to be easy for him.”

The U.S. could bypass Quick for three Olympic rookies in 2022. Connor Hellebuyck, John Gibson and Ben Bishop have superior save percentages and goals-against averages and more games played than Quick since the start of the 2018-19 season.

A wild card is Spencer Knight, the 19-year-old No. 1 from the world junior championships who last year became the highest-drafted goalie since 2010 (No. 13 to the Florida Panthers). Knight would break defenseman Bryan Berard‘s record as the youngest U.S. Olympic hockey player in the NHL era.

The Canadian roster has traditionally been deeper than the U.S. The talent is overwhelming at center, led by Sidney CrosbyConnor McDavidPatrice Bergeron and Nathan MacKinnon. The Canadians must get creative if the likes of veterans Jonathan Toews and John Tavares will join them in Beijing.

Toews, then 21, was the best forward at the 2010 Vancouver Games and Canada’s only one on the all-tournament team. While Toews’ last NHL All-Star selection was in 2017, his last two seasons have been his best in terms of points per game since 2011.

“The one thing that Canada is very good at, they do it extremely well, they select players that fit roles,” McGuire said, noting Mike Richards shifting to the wing during the 2010 Olympics. “When you look at the overwhelming depth that Canada has, that’s going to be the thing that’s going that’s going to be very interesting to watch to see how it plays out at center.”

MORE: NHL players vote on world’s best female hockey player

OlympicTalk is on Apple News. Favorite us!