If top USOC execs demand USA Gymnastics President & CEO Steve Penny’s resignation later today, it could lead to a highly unusual battle of wills with one of the American Olympic movement’s strongest NGBs. However, the situation is fluid -- the full USOC board still must discuss the matter at a meeting underway in L.A., and its ultimate conclusion is not yet certain, a source said. USOC CEO Scott Blackmun and Chair Larry Probst are expected to address the media at roughly 6:30pm ET. Penny is under fire for failing to immediately notify authorities of complaints against a former women’s team doctor, Larry Nassar, who now faces multiple criminal charges and numerous civil suits over alleged sex abuse. The NGB and Penny are named in many of the suits as co-defendants. USA Today first reported on Wednesday that some USOC officials want him out. Late last night, USA Gymnastics’ BOD defended Penny in a statement signed by Chair Paul Parilla, Vice Chair Jay Binder, Treasurer Bitsy Kelley and '84 Gold Medal-winner Mary Lou Retton. "Steve Penny is among the strongest advocates for our athletes and has reported suspected instances of abuse to law enforcement himself,” the statement reads. "He takes their safety seriously, and over the course of his tenure as CEO, has strengthened USA Gymnastics policies and programs to further protect the health and well-being of athletes.”
LIMITED MEANS TO ACT: Other than the bully pulpit, the USOC has limited means of forcing Penny to resign or forcing USA Gymnastics to fire him. Under the '78 Amateur Sports Act, the USOC could move to decertify USA Gymnastics as the exclusive governing body for the sport or cut its grant funding. Both would have to follow formal procedures and could be seen as punishing innocent athletes. “Generally, every NGB is an independent, self-governing organization,” said U.S. Biathlon CEO Max Cobb, who also chairs the NGB Council. Cobb, who emphasized he has no knowledge of the Gymnastics situation in particular, added, “We’re all separate 501(c)3s, and the decisions that each entity makes are those they feel best serve the sport.” USA Gymnastics is far less financially dependent on the USOC than most other NGBs. It has a television deal with NBC and a stable of corporate sponsors that includes Procter & Gamble, AT&T, Hershey and others. It also has a track record of Olympic success and can fill arenas for its own events outside of the Games. USA Gymnastics in '14 received $1.9M in direct USOC aid out of a $23M total budget, whereas USA Sailing, for instance, received a similar grant but had a budget of $9.2M that year.
SUDDEN CHANGE IN SUPPORT: Penny’s position before yesterday did not appear to be in imminent jeopardy, pending further developments in the scandal. The USOC had not weighed in publicly, and sponsors had not taken any formal steps to disassociate themselves from the sport. The American Cup gymnastics meet in Newark last Saturday carried AT&T entitlement and several sponsor activations. Reached in the last 24 hours, sponsors all either declined to comment or did not return messages. Speaking privately, some praised Penny for keeping partners informed as the scandal developed. However, one veteran member of the gymnastics community said Penny’s support within the sport is less secure than it may appear. While the board is behind him officially, this person said the rank-and-file members, athletes, fans and employees welcomed the prospect of USOC intervention as a chance for a fresh start. Penny did not respond to a request for comment.
