USA Gymnastics President & CEO Steve Penny resigned today, one week after the USOC pressured the NGB to act amid growing criticism of Penny’s response to a sex abuse scandal. “We have accepted Steve’s resignation and want to thank him for his contributions and dedication to USA Gymnastics over the years,” said USAG Chair Paul Parilla, who will lead the NGB on an interim basis. Penny joined the organization in '99 and took on his current title in '05. He oversaw a major expansion in corporate sponsorship portfolio, event revenue and TV exposure as the team enjoyed unprecedented success at the Olympics.
In recent months, Penny and the organization have come under fire for not responding forcefully enough to gymnasts’ allegations of sexual abuse by former women’s team doctor Larry Nassar, who now faces numerous criminal charges and civil suits, some of which name the NGB and Penny as co-defendants. “Today's announcement will hopefully allow USA Gymnastics to shift its attention to the future with a secure environment for its athletes and continued success in competition,” said USOC Chair Larry Probst.
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Seconds after the USAG BOD announced Penny’s resignation, Penny released his own statement, which read in part, “For the past 18 years, it has been a privilege to serve the membership of USA Gymnastics. ... It has been heartbreaking to learn of instances of abuse and it sickens me that young athletes would be exploited in such a manner. ... My decision to step aside as CEO is solely to support the best interests of USA Gymnastics at this time.”
USAG will initiate a national search for a replacement. It is awaiting the findings of an investigation led by Indianapolis-based lawyer Deborah Daniels into its response to the allegations. One sponsor, Int’l Gymnastics Camp in Pennsylvania, terminated its contract with USAG. But others, including Procter & Gamble, Kellogg’s, Chobani and Under Armour, have been silent.
