USA Gymnastics files for bankruptcy

USA Gymnastics
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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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MORE: Olympic medalist no longer on USA Gymnastics suspended list

Jenny Simpson, most decorated U.S. miler, shifts focus with new Puma sponsorship

Jenny Simpson
Puma
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Jenny Simpson, the most decorated U.S. female miler in history, plans to return to racing on Sunday with a new shoe sponsor, Puma.

Simpson, whose last race was the Cherry Blossom 10-mile road race in Washington, D.C., in September 2021, according to World Athletics, will run what she called “a little rust-buster” at the Army Ten-Miler in Washington, D.C.

“My intention is to turn my focus to the roads,” Simpson, 36, wrote in an email. “I have some great PUMA spikes that I love so the track isn’t off the table. But my emphasis will be road racing.”

Last year’s Cherry Blossom was her first race longer than 5,000 meters, according to World Athletics. What are the chances she eventually moves up to the marathon distance?

“This new chapter is an exploration,” she answered. “I’m going to let the races, training, and coaching guide the next steps as they come. I know I can physically do it, it’s a matter of whether I can be great at it and my team and I will only go there if we think we can be competitive. So, let’s say for chances… 51% :)”

Simpson made her first Olympic team in 2008 in the 3000m steeplechase, then in 2012 and 2016 in the 1500m, earning a bronze medal in Rio. She is the lone U.S. woman to win a world 1500m title (2011) or an Olympic 1500m medal.

From 2007 through 2019, Simpson finished in the top three in one of the 1500m, 5000m or 3000m steeplechase at all 13 annual USA Track and Field Outdoor Championships. Last year, she was 10th in the Olympic Trials 1500m in a bid to become the oldest U.S. Olympic 1500m runner in history, according to Olympedia.org.

Simpson focused much of her time this year helping her Colorado community heal and rebuild from a late December fire. She did not enter the USATF Outdoors for the first time since 2006.

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Mikaela Shiffrin, checklist complete, carries lessons into new World Cup season

Mikaela Shiffrin
Atomic
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Mikaela Shiffrin said she hit every possible statistical goal in the first 11 years of her Alpine skiing career. Keep that in mind as the storyline the next few seasons may turn to the World Cup wins record.

Shiffrin, who begins her 12th World Cup season in Soelden, Austria, in two weeks, is up to 74 victories on the circuit. The 27-year-old ranks third all-time behind Lindsey Vonn, who owns the women’s record of 82 wins, and Swede Ingemar Stenmark, who has the overall record of 86.

Shiffrin did rounds of interviews Thursday at the media day for her ski sponsor, Atomic. In one sitdown streamed by Atomic, she was asked, “Are you aiming for the record? … There’s just 12 left. Normally, winning 12 races, that’s a lot, but you already won 74, so it doesn’t sound that much anymore.”

“Just 12,” Shiffrin joked. “If you look at it like that, but that’s maybe oversimplification.” (Note greats including Americans Picabo Street and Julia Mancuso didn’t win 12 World Cups over a career.)

Then Shiffrin asked if the interviewer did in fact say 74 — “Yeah, you have 74,” the interviewer confirmed to Shiffrin, who sat between fellow stars Sofia Goggia of Italy and Aleksander Aamodt Kilde of Norway.

“Even after 74 … one race feels like a lot,” Shiffrin continued. “Twelve [wins] still feels like a large mountain to climb, for sure, but it’s step by step or race by race. If I just focus on what’s coming in the next couple weeks and then keep going from there, then we’ll see.”

From 2017 to 2019, Shiffrin won 11, 12 and 17 times on the World Cup. Her last three seasons were abbreviated after her father’s death, the COVID-19 pandemic and back problems. She still won an average of five races each year.

In an earlier interview Thursday, Shiffrin expressed confidence about her preseason form. She followed February’s Beijing Olympics, where her best individual finish was ninth, by bagging her fourth World Cup overall title, the biggest annual prize in the sport, crowning the best all-around skier.

“Finishing off [at last March’s World Cup Finals] in Meribel, that final race of the season, I was thinking, I could use a moment to breathe,” she said. “There was also this part of me that’s like, I kind of didn’t want this to be the last race. I was a little bit antsy to actually get going on the next season already.”

Shiffrin took less of a break than a year ago, spending 10 days in Maui. She had “really productive” training camps in Colorado, Switzerland and Chile and arrived back in Europe on Wednesday for the run-up to the World Cup opener on Oct. 22.

As always, the priority is keeping her slalom and giant slalom technique top-notch. As long as that’s flowing, Shiffrin feels comfortable branching into the speed events, starting with super-Gs. She plans to race both the slalom and GS at February’s world championships, then possibly the super-G with the combined less of a priority. The downhill is “fairly doubtful,” but she has a few months to make a final decision.

Of course, Shiffrin raced everything at the Olympics in February. In interviews last winter, she couldn’t quite explain why the greatest technical skier in history did not finish any of her three technical runs at the Games.

Shiffrin gave a detailed, two-and-a-half-minute answer when asked Thursday if she went back during this offseason to analyze those races. Or if she is brushing them off as an anomaly.

“Statistically, it’s an anomaly, but there was a lot of culminating factors that could have been involved,” she said.

In basic terms, she got on her inside ski in the opening GS and fell within 13 seconds — “a technical flaw that had a much higher consequence than it’s ever had in any other race that I’ve ever done.” In slalom, she had too much intensity, or too much speed, in a section that required more precision and skidded out within six seconds — “I was not giving anything away, and then I gave everything away.”

“There was less margin for error in Beijing because of the snow conditions,” said Shiffrin, who like every other racer hadn’t previously raced on that slope of manufactured snow. “I don’t think I maybe considered that enough in the moment when I was skiing to kind of reel it in sometimes when it would have been necessary. But I also wasn’t skiing to reel it in or make it to the finish. I was skiing to like, blow the course apart. I was going for it.”

She hopes to take that mentality into this season. In the spring and summer, she devoted more time to developing equipment that works better on softer snow, which is becoming more commonplace at World Cup venues given warmer temperatures.

“If you have a checklist of goals you want to achieve before you retire, actually, my checklist is complete,” she said. “If I had one, it would be complete. Somehow, I feel like I still have something left to accomplish, or faster skiing to do, so that’s kind of why I’m here. Hopefully I can remember that when there’s points in the season that feel stressful or pressure. There’s nothing that has to be done.”

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