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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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Bryan brothers to retire at 2020 U.S. Open, don’t plan on Olympics

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Bob and Mike Bryan said they will retire after the 2020 U.S. Open, ending a tennis career that’s included a men’s record 16 Grand Slam doubles titles together.

They also don’t plan to play at the Tokyo Olympics, their manager later said in an email.

The twins are 41 years old, having spent more than half their lives as professionals.

“A part of us, feels like, is dying,” Bob Bryan said on Tennis Channel. “But we’re really clear about this decision. It’s going to be great to have a finish line.”

Mike said that in 2020 they will play all the events they “really love,” including all four Grand Slams and American tournaments. The Olympics weren’t mentioned.

Rather, they will see how they’re feeling midway through the year, they said on the Tennis.com podcast.

The Bryans earned doubles gold at the 2012 London Games but withdrew from the Rio Olympics six days before the Opening Ceremony. They cited making their family’s health a “top priority” and later said Zika virus concerns were “a very small part of” the decision.

The Bryans own 118 titles overall but nearly ended their partnership after Bob underwent hip surgery a year ago. He rejoined Mike this season, reaching the Australian Open quarterfinals and winning two ATP doubles titles.

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A century later, Naomi Osaka, Kei Nishikori can bring Japan Olympic tennis to forefront

Naomi Osaka, Kei Nishikori
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When Naomi Osaka and Kei Nishikori take the courts at the Tokyo Olympics, perhaps together, they will be doing so 100 years after tennis players won Japan’s first Olympic medals in any sport.

Tennis is not usually one of the handful of marquee competitions at the Games, in part because it is one of the sports whose biggest event is not the Games themselves.

“We have been playing for these Grand Slams, and I think that’s why we train for,” Nishikori said at the U.S. Open in August, when asked to compare the meaning of winning one of tennis’ four annual majors to earning a medal at a home Olympics. “That’s going to be the biggest goal to winning Grand Slams.”

Yet the term “Grand Slam” had not been conceived — for golf or tennis — at the time of the 1920 Antwerp Games. There, Ichiya Kumagae earned silvers in singles and doubles with Seiichiro Kashio to become the first Japanese Olympic medalists.

Kumagae was Japan’s first notable international tennis player, reaching the 1918 U.S. Open semifinals (then called the U.S. National Championships) and beating Bill Tilden in the final of the 1919 Great Lakes Championships.

Kumagae, born in 1890, had not seen a tennis racket or ball until his 20s, according to Roger W. Ohnsorg‘s “The First Forty Years of American Tennis.”

“He came here to America in 1916, the possessor of a wonderful forehand drive and nothing else,” Tilden wrote in “The Art of Lawn Tennis.” Kumagae was listed by Ohnsorg as 5 feet, 3 inches, 134 pounds and requiring glasses at all times. Later in 1922, Kumagae’s engagement to the daughter of a wealthy politician was published as a news brief in The New York Times.

Nearly a century later, Nishikori and Osaka brought more Japanese tennis breakthroughs. Nishikori became the first Asian man to reach a Grand Slam singles final at the 2014 U.S. Open. Last year, Osaka became the first Japanese singles player to win a Grand Slam, also at the U.S. Open.

This past June, Japan’s annual Central Research sports survey (1,227 people, age 20+) put Nishikori and Osaka as its respondents’ fourth- and sixth-favorite athletes, past or present. Baseball players Ichiro (retired), Shohei Ohtani and Shigeo Nagashima (long retired) and figure skater Yuzuru Hanyu rounded out the top five.

Osaka’s U.S. Open title was voted the top sports moment of Emperor Akihito’s reign from 1989 to April 30, beating Ichiro’s retirement and Hanyu’s repeat Olympic crown in PyeongChang. Perhaps there was some recency bias.

Akatsuki Uchida, a tennis journalist from Japan, said that Nishikori’s U.S. Open final was a bigger moment for Japanese tennis than Osaka’s win over Serena Williams, though.

“Tennis at that time [in 2014] was not broadcast in Japan,” she said at the U.S. Open. “Media coverage of tennis was decreasing before Kei made that final. For most of Japanese, not tennis fans, but ordinary people, it came from out of nowhere. … He became like an overnight sensation. Since then, the situation of tennis in Japan changed dramatically.

“If [Osaka] wins the title before Kei won the title here, it could have been way bigger, but since Kei made the final before Naomi, it made Naomi’s achievement, still a big deal, less surprising.”

Another key difference: Nishikori spent the majority of his childhood in Japan, while Osaka’s family, with a Haitian father and Japanese mother, moved to the U.S. when she was 3 years old.

Osaka has dual citizenship, but Japanese law requires one to be chosen over the other by the 22nd birthday. Osaka turned 22 last month, before which she confirmed what most had assumed, that she picked Japan.

Uchida was unsure whether Osaka and Nishikori could propel tennis at the Tokyo Games into a greater spotlight among 33 total sports.

“But if Kei and Naomi played mixed doubles, that would be a big thing,” she said.

Nishikori has already reportedly said he plans to enter singles and doubles in Tokyo, the latter with Ben McLachlan, Japan’s top doubles player. McLachlan was born in New Zealand and in 2017 switched representation to Japan, his mother’s birth nation.

But Nishikori did not rule out adding mixed doubles.

“Very hot, very humid, playing singles and two doubles, I don’t know if I can,” he said before the U.S. Open. “I haven’t think too much yet, honestly. I don’t know. I will talk to Naomi later.”

Nishikori smiled as he brought up Osaka’s name at the end of his answer to a question that didn’t mention her. Later in the tournament, Osaka was told Nishikori’s thoughts.

“I would definitely play with him,” said Osaka, who in 2016 was the highest-ranked eligible player not to make the Rio Olympic field. “I just — I would actually need to practice doubles for the first time in my life. Because you cannot play mixed doubles with Kei Nishikori and lose in the first round of the Olympics in Tokyo. That would be the biggest — like, I would cry. I would actually cry for losing a doubles match. Yeah, definitely I think that that would be so, like, historic in a way. And I would love to do it, but I need to practice my doubles.”

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