Benner: USA Gymnastics Bankruptcy a 'Gut Punch'

Posted: Updated:
INDIANAPOLIS -

In what Inside INdiana Business Sports Contributor Bill Benner calls "another gut punch to a once-proud organization," Indianapolis-based USA Gymnastics has filed for Chapter 11 bankruptcy protection. The organization says the move is part of a "reorganization" plan and will allow it to more quickly resolve legal claims made by athletes who were victims of sexual abuse by former team doctor Larry Nassar.

In a news release Wednesday, USA Gymnastics says the survivors' claims against the organization are covered by insurance and the amount of available insurance proceeds will not be affected by the bankruptcy filing. However, the organization claims it has "no other significant assets" that could be used to pay the claims and the filing is the best way to quickly reach settlements with the survivors.

"We owe it to the survivors to resolve, fully and finally, claims based on the horrific acts of the past and, through this process, seek to expedite resolution and help them move forward," said Kathryn Carson, chair of the USA Gymnastics Board of Directors. “Our sport is safer and stronger thanks to the bravery of these women. The Chapter 11 filing and the expedited resolution of these claims are critical first steps in rebuilding the community’s trust."

Carson says the filing will also allow USA Gymnastics to continue its support of current athletes.

The filing is the latest in the saga of the embattled organization, which was accused of covering up the actions of Nassar, who was sentenced to prison on numerous counts of child sexual assault following accusations he molested hundreds of underage athletes, both as the USA Gymnastics team doctor and a physician at Michigan State University.

Earlier this year, USA Gymnastics announced Mary Bono would serve as interim president and chief executive officer of the organization. Bono would resign four days later amid backlash over a controversial tweet she sent earlier in the year.

Carson says the board is "in the process of searching for a new CEO who has the experience to build a leadership team that will restore confidence in USA Gymnastics, and set and execute a clear vision for a successful future."

Additionally, USA Gymnastics says the Chapter 11 filing will allow it to work with the United States Olympic Committee, which last month began efforts to remove the organization as the National Governing Body for gymnastics in the U.S. 

"We look forward to future conversations with the USOC to demonstrate our commitment at all levels to strengthening the organization and making gymnastics the best it can be for athletes at all levels," said Carson. "USA Gymnastics will continue with its day-to-day operations of directing and managing the sport’s business and implementing initiatives that put the safety and well-being of the athletes at the forefront."

The filing for Chapter 11 bankruptcy protection was made in the U.S. Bankruptcy Court for the Southern District of Indiana.

Benner says, while the scandal "can't be excused," USA Gymnastics has had a positive impact on Indianapolis.
  • Perspectives

    • Ahh…Yes! Turning a Hot Mess into a Cool Breeze

      "Problems cannot be solved by the level of thinking that created them," is attributed to Einstein over 75 years ago. This still holds true, particularly in challenging communications. Many people address conflict at the level it was created by rehashing and building more evidence for their ‘side’ of an argument. Repeating a position tends to intensify the separation of people.

    More

Subscribe

Name:
Company Name:
Email:
Confirm Email:
HTML
INside Edge
Morning Briefing
BigWigs & New Gigs
Life Sciences Indiana
Indiana Connections
INPower
Subscribe
Unsubscribe

Events



  • Most Popular Stories

    • Aasif Bade (pictured left) is president and Patrick Chittenden (pictured right) is executive vice president of Ambrose Property Group.

      Waterside Developer: City Has 'Violated Our Rights'

      The chief executive officer of Indianapolis-based Ambrose Property Group says the firm is preparing for litigation regarding the future of the former GM Stamping Plant site. In a response to a letter from the city of Indianapolis this week, Aasif Bade says the city's continued threat of acquiring the site of the $1.4 billion Waterside redevelopment project through eminent domain "has violated our rights and is harming the community by putting Waterside in a state...

    • Purdue Global Now Offers Analytics Degree

      The U.S. Bureau of Labor Statistics reports that jobs in the field of data analysis are projected to grow 26 percent over the next ten years. Acting upon that data, Indianapolis-based Purdue University Global has launched a new Bachelor of Science degree program in analytics. 

    • Bob Stutz

      New Role For Salesforce Exec

      After three years on the job, Salesforce Marketing Cloud Chief Executive Officer Bob Stutz is moving into a new role. Stutz, who will remain in Indianapolis, is now executive vice president of strategic partners at Salesforce (NYSE: CRM).  Since arriving in Indianapolis, Stutz has overseen the establishment of the company’s regional headquarters in downtown Indianapolis, which included the Salesforce name being placed atop the state’s tallest building.

    • POET ethanol co. announced in Aug 2019 it was closing the plant in Cloverdale. (photo courtesy: POET)

      Cloverdale Ethanol Plant Closes

      South Dakota-based POET LLC, the nation’s largest biofuels producer, is moving forward with a plan to shut down its biorefining plant in Cloverdale, leaving 50 Hoosiers without jobs effective Friday. The company tells Inside INdiana Business that it is not making any changes to the plans announced two months ago. 

    • (photo courtesy of SupplyKick)

      SupplyKick Moving to Former Angie's List Campus

      An Indianapolis-based tech company is moving from its location near Mass Ave to the former Angie's List campus. SupplyKick, which helps businesses optimize their retail presence on Amazon, says the decision to relocate to the area, now known as Elevator Hill, is the result of continued growth and the need for more office and warehouse space. In an interview with Inside INdiana Business, Vice President of Marketing Peter Lazarz said Elevator Hill was a great fit for the...