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.

Senior Spotlight: Nebraska Gymnastics' Megan Schweihofer

In the return of this ongoing series, FloGymnastics features gymnasts who are in their final collegiate season. Next up is Nebraska's Megan Schweihofer.

What You Need To Know Before The 2019 Melbourne World Cup

The 2019 Gymnastics World Cup is being hosted this year in Melbourne, Australia, and will be a huge event. Just one year before the 2020 Olympics, having the 2019 World Cup in Melbourne is a huge honor for Gymnastics Australia. Athletes from 32 different countries will compete in the multi-day competition, where the first two days are spent in qualifications, and then the top eight athletes in each event move on to the finals.

8 Teams Favored To Make NCGA Nationals In 2019

This year the NCGA National Championships are hosted at University of Wisconsin–Oshkosh, and although every team in the division hopes to see itself there, only six can qualify. Which teams snag a spot at nationals depends what happens at regionals, where the top three teams from the East Region and the WIAC secure a berth to the national tournament. With a little over five weeks left to go until competition day, here are eight teams that have a good shot at winning the title. 

Winter Cup Features A Bevy Of Oklahoma Gymnasts

Colin Van Wicklen has been before. In fact, the former Oklahoma Sooner has made five previous trips to the Winter Cup Challenge dating back to his prep years in Magnolia, Texas.

Freshman Feature: University of Wisconsin Oshkosh Gymnast Rahdea Jarvis

FloGymnastics is starting a new series that showcases college gymnasts competing in their freshman season. This inaugural freshman feature highlights Rahdea Jarvis from the University of Wisconsin Oshkosh.

Senior Spotlight: West Virginia Gymnastics' Kirah Koshinski

In the return of this ongoing series, FloGymnastics features collegiate gymnasts who are in their final season. Next up is West Virginia star Kirah Koshinski.

Recognition Rolls In For Florida Freshman Trinity Thomas

The early part of the 2019 season has seen several freshmen catapult onto the scene and create lightning for their teams, but few have shined as brightly as Florida’s Trinity Thomas.

What To Watch On FloGymnastics This Week

With the winter weather raging on, it’s looking like another good weekend to stay in and watch gymnastics! (Although, to be honest, we think every weekend is perfect for that, no matter what the weather’s like.) Luckily, FloGymnastics is streaming a number of meets live, so whether you love rhythmic, NCAA, club or tumbling and tramp, you’ll have lots to watch this weekend.

FloSports Brings FIG World Cups to Canadian Gymnastics Fans

AUSTIN, Texas – February 12, 2019 — Today, FloSports, the innovator in live digital sports and original content, announced a partnership with Dentsu to provide live and on-demand coverage of all Fédération Internationale de Gymnastique (FIG) World Cup and World Challenge Cups exclusively in Canada through 2020 on FloGymnastics.com.

8 NCAA Teams Prepare To Compete At The GymQuarters Mardi Gras Invitational

The GymQuarters Mardi Gras Invitational, taking place Feb. 15 in St. Charles, Missouri, is hosting not only a club gymnastics meet this year but also inviting some of the top NCAA teams to compete. This exciting meet has two NCAA competitions, with four teams in each.