USA Gymnastics Files For Chapter 11 Bankruptcy

USA Gymnastics has filed a voluntary petition for protection under Chapter 11 of the Bankruptcy Code. USAG posted the news in a press release along with a post outlining frequently asked questions.

In a press briefing following the announcement, Kathryn Carson, chairman of the USAG board, said, "We are not liquidating and we are not looking to close our doors. We absolutely will continue as a not for profit organization serving the sport."

USAG stressed that they are filing for bankruptcy to expedite resolution of Larry Nassar survivors’ claims. They also stated that besides the 100 lawsuits from over 350 survivors, the organization is financially sound.

“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,”

USAG also stated in the press briefing that the filing will stop the proceeding of the USOC's decertification procedure from moving forward. In order for the USOC to proceed, they would need to go to bankruptcy court to get permission.

The search for a new USAG CEO is still underway.

USA Gymnastics press release below:

INDIANAPOLIS, Dec. 5, 2018 -- USA Gymnastics today filed a voluntary petition for protection under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Indiana. This filing will enable USA Gymnastics to continue to support its athletes, to fully operate and meet its responsibilities to the entire membership and to expeditiously resolve the claims made by the survivors of sexual abuse perpetrated by Larry Nassar.

“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, who was recently elected 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.

“At the same time, the filing will allow us to continue the important work of supporting our outstanding gymnasts at all levels, including the current and next generation of Olympic hopefuls,” continued Carson. “Since joining the Board last June, I have been inspired by the commitment of our members -- the administrators, judges, coaches and club owners -- who work daily to foster a safe, positive and encouraging environment where thousands of young people can learn gymnastics and life skills, compete and pursue their dreams.

“We are moving forward with our plans to strengthen our organization to further support the work of our members and gymnasts,” said Carson. “We have made significant progress in implementing safety initiatives and are 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.”

The survivors’ claims against USA Gymnastics are covered by insurance previously purchased by USA Gymnastics, and the amount of available insurance proceeds available is not affected by the Chapter 11 filing. Apart from these insurance proceeds, USA Gymnastics has no other significant assets that could be used to pay claims. USA Gymnastics believes that the Bankruptcy Court is the best forum in which to implement appropriate procedures to equitably determine and allocate the insurance proceeds among claimants, allowing compensation to survivors to proceed more quickly than litigation filed in multiple courts around the country.

By staying all pending actions against USA Gymnastics, the Chapter 11 filing also allows USA Gymnastics to work with the United States Olympic Committee to determine the best path forward for the sport of gymnastics. “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.”

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

Carson is one of eight independent and seven membership directors who were elected to a newly created Board of Directors in June 2018. The membership directors include representation for the competitive gymnastics disciplines, athletes and affiliated organizations.

What's The Difference Between A Kasamatsu & A Tsukahara?

In his 1982 play The Real Thing, British playwright Tom Stoppard writes that love has to do “with knowing and being known.” If loving is knowing—knowing those tiny, nuanced things that turn an idea into a being—then loving gymnastics is knowing the difference between a Kasamatsu and a Tsukahara.

This Weekend On FloGymnastics: Jan. 18-19, 2019

We're already into the third week of the 2019 season, and this weekend you can watch four live events on FloGymnastics.

Georgia's Talented Freshman Class Bodes Well For Gymdogs' Future

When Oklahoma and Georgia faced off Friday night, the two squads had one thing in common. Both rosters were filled with freshmen.

Oklahoma Gymnastics Reclaims No. 1 Spot After Defeating No. 5 Georgia

NORMAN — It took only one week into the season for Oklahoma to claim the No. 1 spot in the rankings. The Sooners did it by beating up on No. 12 Arkansas in the season opener with a 198.050.

Senior Spotlight: University Of Illinois At Chicago's Mikailla Northern

In the return of this ongoing series, FloGymnastics features collegiate gymnasts who are in their final season. First for the 2019 season is the University of Illinois at Chicago's Mikailla Northern.

5 Gymnasts To Watch At The 2019 Lady Luck Invitational

Hosted by Brown’s Gymnastics in Las Vegas, the Lady Luck Invitational is a highly competitive meet set in a lively environment, and it always brings tons of gyms from around the country. Hosted this year from Jan. 16 - 21, 2019, fans can watch levels 9 and 10 live on FloGymnastics. 

McCallum, Wong, Mikulak, Moldauer To Compete At 2019 American Cup

Grace McCallum, Leanne Wong, Sam Mikulak and Yul Moldauer will be representing the U.S. at the 2019 American Cup gymnastics competition on March 2 in Greensboro, North Carolina.

5 Gymnasts To Rewatch After The Cancun Classic

The gymnastics programs of Michigan, Rutgers, Iowa State and West Virginia officially kicked off the 2019 NCAA season at the Cancun Classic. The meet was one of fierce competition and startling scores. Far from home, these four teams began their seasons in a fun venue and shook off the first-meet jitters in a tropical setting.

This Week On FloGymnastics: Jan. 11-13, 2019

The 2019 gymnastics season is underway, and this week we've got five seven exciting competitions live on FloGymnastics. Read about the meets and plan your weekend accordingly!

West Virginia Gymnastics Looks To 'Climb The Mountain' In 2019 NCAA Season

Throughout the 2018 season, one phrase kept popping up around the West Virginia gymnastics program. "Climbing the mountain" had become the mantra of the team.