USA Gymnastics files for bankruptcy after scandal

Still struggling to move past the Larry Nassar scandal and facing almost 100 lawsuits from his victims, USA Gymnastics filed for bankruptcy in a move that its chairman says will speed up payouts to the athletes.

“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,” Kathryn Carson, the recently elected chair of the USA Gymnastics Board of Directors, said in a statement.

“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.”

USAG said that insurance covers the “survivors’ claims” but that the organization has “no other significant assets” with which to fund other expenses.

“All of us have the same goal of making meaningful changes for the benefit of our athletes and all members,” Carson said.

“While considerable change has been made, substantial work still remains. We will continue to prioritize athletes’ safety and well-being and acting in the best interests of the greater gymnastics community.”

The Chapter 11 bankruptcy also staves off — for the time being — the U.S. Olympic Committee’s efforts to revoke USAG’s status as the sport’s official governing body, a plan announced last month.

“In the short-term, we have to work to ensure that USAG gymnasts have the support necessary to excel on and off the field of play,” CEO Sarah Hirshland said in a statement in early November.

“We are building plans to do just that. In the long-term, it will be the critically important responsibility of the recognized Gymnastics NGB, whether the existing organization or a new one, to lead gymnastics in the United States and build on the supportive community of athletes and clubs that can carry the sport forward for decades to come.”

Nassar was sentenced up to 125 years in prison in January after pleading guilty to molesting 10 girls. More than 100 other gymnasts accused him of sexual assault spanning decades.

President Kerry Perry resigned as part of the scandal and interim president Mary Bono resigned after only a weekend following backlash over a controversial tweet about Colin Kaepernick and Nike.

Steve Penny, the former head of USA Gymnastics, was arrested in October after allegedly removing documents linked to Nassar’s case from the Karolyi Ranch gymnastics training facility in Texas.