The US Olympic Committee (USOC) would not consider bankruptcy protection as it prepares to face lawsuits for failing to protect young gymnasts from sexual abuse by a team doctor, USOC chairwoman-elect Susanne Lyons said on Friday.
Every other option, including settlements, would be on the table, Lyons said, as the committee deals with the fallout from a sex abuse scandal involving former USA Gymnastics (USAG) team doctor Larry Nassar.
Nassar was late last year and early this year sentenced to up to 300 years in prison after more than 350 women testified about abuse at his hands, and lawyers for a number of his victims have filed lawsuits against both USA Gymnastics and the committee.
Earlier this month, USA Gymnastics filed for bankruptcy, saying that it was staggering under the weight of lawsuits filed by hundreds of women who were sexually abused by Nassar.
“I think we discussed all the potential options, but if you are asking about bankruptcy for the USOC, that option is not something that is on the table, nor do we anticipate that it would be,” Lyons said in a teleconference.
“We are looking at all options, which would include at what time it might be appropriate to enter into discussions about settlements or not,” she said.
Despite months of turmoil and upheaval, USOC president Larry Probst said that the committee’s finances remained solid.
“Everything is in good shape there, with revenues running ahead of plan and expenses under plan,” Probst said. “We are well ahead of our target for financial support in the development area, so good news on all fronts financially.”
Earlier on Friday, a US Senate subcommittee investigating sexual abuse in gymnastics determined that former USOC CEO Scott Blackmun had made “materially false statements” to the panel and referred the matter to the FBI.
That came on the heels of a report released on Monday that showed some top USOC executives took no action as the Nassar sexual abuse scandal was unfolding.
The report, carried out by law firm Ropes & Gray, offered details on what it called the “inaction” from Blackmun and former chief of sport performance Alan Ashley.
Blackmun and Ashley were made aware of allegations against Nassar by then-USA Gymnastics CEO Steve Penny in July 2015, but neither shared the information with others in the organization, the report said.
Probst was asked how it was that Blackmun failed to share what he knew about the Nassar scandal with the board.
“I don’t think it is appropriate for me to speculate on what Scott was thinking or not thinking,” Probst said. “I cannot speculate on what was going through Scott’s mind or how he went through his decision process.”
“Obviously the system broke down in many aspects, beginning with some of the things that took place at USAG, at the USOC, Michigan State University,” he said.
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