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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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A 1983 world champion will become the oldest Olympic table tennis player ever

Ni Xia Lian
European Table Tennis Union
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Ni Xia Lian, a 55-year-old, Chinese-born table tennis player for Luxembourg, is set to become the oldest Olympian ever in her sport.

Ni earned Luxembourg a quota spot at the 2020 Tokyo Games by bagging bronze at the European Championships on Wednesday. Ni will fill that spot and compete at her fifth Games next summer, according to Luxembourg’s table tennis federation.

Ni’s first senior medal at a global competition came with China at the world team championships in 1983.

Ni moved to Luxembourg in the 1990s, running a hotel with her husband. She kept competing, with a five-year break between 2002 and 2007, and set a record in 2017 for the longest table-tennis match at 1 hour 33 minutes.

She would already be the oldest Olympic table tennis player if not for He Zhiwen, who was born in China and competed for Spain with the nickname Juanito at the 2004, 2008, 2012 and 2016 Olympics. He retired after Rio at age 54, according to the International Table Tennis Federation.

Ni will be 57 next summer, older than any previous female Olympians outside of archery, equestrian, shooting and art competitions, according to the OlyMADMen. Her best Olympic finish was ninth in Sydney in 2000.

Chinese-born players represent many countries in table tennis, including European Games gold and silver medalists, Fu Yu of Portugal and Han Ying of Germany.

The Associated Press contributed to this report.

MORE: Most experienced Olympian in history retires at age 72

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Phil Dalhausser, tempted by retirement, partner switch, forges to final Olympics

Phil Dalhausser, Nick Lucena
AVP
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At one point last summer, Nick Lucena made an unusual move for an Olympic beach volleyball player. He suggested to his partner, 2008 Olympic gold medalist Phil Dalhausser, the best American for the last decade, that Dalhausser might be happier playing with somebody else.

“I thought, man, Phil’s not enjoying this, he wants to retire,” said Lucena, who at the time was sidelined by a minor injury. “The last thing I want to do is slow you down. I was like, if he’s going out, it’s not going to be on my account.”

Lucena even offered a replacement: the up-and-coming Taylor Crabb, who at 27 is 12 years younger than both Lucena and Dalhausser, Floridians who paired at the Rio Olympics (lost in the quarterfinals), for the last four years and to start their careers from 2003-05.

“Taylor is a special player,” Lucena said. “Them together, I thought they’d be a special team.”

Dalhausser agreed to an extent. Crabb is the best defender in the world, he said. But Dalhausser, the bald, 6-foot-9 blocker known as the “Thin Beast,” waved off Lucena’s humility.

“If I were to rate a defender one through 10, Taylor being a 10, say Nick is a nine,” Dalhausser said earlier this month. “But we’re buddies. We get along. We’ve been friends for 20 years. That just adds a point value to him, so now he’s a 10.”

Crabb, based in California, sensed from afar that Dalhausser might be interested in a change last year. So, he called him.

“I’d be crazy not to ask Phil or for us to talk,” said Crabb, in his third season with three-time Olympian Jake Gibb. “We had talked a little bit, but at the end of the day … “

Crabb cut his answer short in a Midtown Manhattan hotel breakfast booth as Lucena walked by.

Even though they didn’t split, Lucena worried that Dalhausser’s heart was not in the sport anymore. Dalhausser isn’t one to show emotion on the sand, but it was clear that 15 years traveling the world took its toll. He’s married now with 4- and 6-year-olds, but he spends more time every summer with Lucena, a fellow 39-year-old father of two.

“I just wasn’t happy, and I wasn’t going to become happy with making a change in volleyball or whatever,” Dalhausser said. “It had to come from inside.”

An epiphany came last offseason. Dalhausser dived into self-help books: Jack Canfield‘s “The Success Principles,” Eckhart Tolle, Tony Robbins.

“One day, I was walking around the kitchen, thinking aloud, what the hell is my purpose?” he said. “I said, I guess it’s volleyball. My wife [former beach volleyball pro Jennifer Corral] was sitting right there and said, you’re an effing idiot if you don’t think it’s volleyball.

“Since then, I was like, all right, I guess I’m going to make a run.”

An Olympic run. Dalhausser and Lucena are about to start a crucial stretch of international tournaments in Tokyo 2020 qualifying. It begins this weekend at the world championships in Hamburg, Germany.

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A maximum of two U.S. pairs can qualify for the Games. Dalhausser and Lucena are outside the world top 25, but, more importantly, third among Americans about halfway through qualifying. They’ve only played four events; most have played at least six. Each team’s 12 best finishes in the two-year qualifying window count when the Olympic field is determined next summer.

“Results wise haven’t been great up to this point,” said Dalhausser, who won at least one international event each of the previous 13 seasons, but none since Olympic qualifying began last June. “I feel like we’re going to hit our stride here, the more we play consistently and get into a rhythm. I think we’ll be fine. I’m not really worried about it.”

Come next summer, Dalhausser and Lucena will both be older than all but one previous Olympic beach volleyball player. Dalhausser said this is his last Olympic cycle and that he will not play internationally after the 2020 season, but could continue on the domestic AVP tour.

“You see these grays here?” Dalhausser said, pointing to his chin stubble. “Obviously, when I was 28 in Beijing [the 2008 Olympics with Todd Rogers], that was probably my peak as far as vertical goes. But I’m not so sure I’m that far under it.”

Still, injuries are creeping up. They withdrew from a recent event in Poland, citing Dalhausser’s ab injury that has limited his jump serving.

While Dalhausser and Lucena were arguably medal favorites going into Rio, there is no debate about the new No. 1 going into worlds.

“Hands down,” Dalhausser said. “Norway.”

Anders Mol, 21, and Christian Sørum, 23, have won eight of their last 11 international events together. Norway has never put a men’s or women’s team into an Olympic beach volleyball quarterfinal. But the Beachvolley Vikings, who honed their skills at a Hogwarts-like academy called Top Volley Norge in a village named Sand, are unlike any team Dalhausser has ever seen.

“They just don’t have any holes in their game,” Dalhausser said.

It was about this time five years ago when Dalhausser was part of the world’s hottest team. He and Sean Rosenthal won three Grand Slams in a four-event stretch in the summer of 2014. But Dalhausser suffered an oblique injury at about this time in the last Olympic cycle, and they plateaued. Lucena emailed Dalhausser about his availability, and they reunited a year before the Rio Games.

Dalhausser actually wanted to retire after he and Lucena lost to eventual gold medalists Alison and Bruno in the Olympic quarterfinals. He spoke with his alma mater, the University of Central Florida. Had the school started a beach volleyball program, he would have left for a job there.

Even up until this past January, Lucena said he was trying to talk Dalhausser into playing this summer’s world championships. Finally, Dalhausser was asked by his agent and USA Volleyball for a 2019 season schedule. He submitted one with 15 events, mostly international ones, and shared it with Lucena.

“It kind of told me, oh damn, we’re going to try to make a run, which I was not ready for, but I was kind of excited,” Lucena said. “I still felt like I had a lot left in the tank. Maybe not a lot, but enough to make a push.”

Lucena said he’s seen a change in Dalhausser’s demeanor. They won for the first time in seven events together this season at the AVP New York City Open earlier this month, rallying past Crabb and Gibb in a three-set semifinal. Lucena, known more for his defense, earned the AVP’s Hammer Award, given to the top offensive player of the tournament.

“A wise man once said,” Dalhausser deadpanned, sitting next to Lucena at the event, “a blind squirrel finds a nut every once in a while.”

Lucena and Dalhausser came up together in the early 2000s, playing for a few hundred dollars a tournament and holding part-time jobs, including as substitute teachers. When Dalhausser left to pair with Rogers, Lucena spent nearly a decade with the motivation to become a strong enough player to get Dalhausser back as a partner.

It didn’t surprise NBC Sports analyst Kevin Wong that Lucena would willingly let Dalhausser leave for another partner in the middle of their last Olympic cycle.

“Those guys are lifelong friends,” Wong said. “Nick’s that guy who can see the bigger picture, life outside of volleyball. The crazy thing was last year on tour, Phil never told me this, but there were two or three different people saying, hey, we think Phil’s going to retire after this year. His motivation, his energy were pretty low and so the question was, is this like a little lull, recharging the battery before one last Olympic push? Or is this the swan song?”

Now Dalhausser seems firm in pushing ahead for one more year.

“It was tempting [to switch partners], but, again, at the end of the day, family then volleyball,” Dalhausser said, noting that sticking with the Tallahassee-based Lucena allows him to spend more time at home in the Orlando area. Most elite beach volleyball players live in California, including Crabb.

“I guess I can be like, hey, Taylor, you want to make a run? It’s not too late,” Dalhausser said. “But my gut’s not telling me that’s the right thing.”

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