WAG USOC moves to revoke USAG...

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The insurance carriers have denied coverage because their plan documents do not cover gross negligence and intentional conduct. The carriers contend USAG acted intentionally, or at least with gross negligence. It's difficult to decide such a matter on pleadings through motion practice, but the "missing documents" go a long way toward proving that defense before a judge. Normally, such issues would have to go to a jury which would take around 2 years and $75,000+/month to litigate based on the fee structure at the participating firms.

USAG is not a large corporation. It's actually very small. The documents were not accidentally left in a closet. Penney perhaps needs a new attorney (or more likely to listen to his attorney) because his "defense" in the news that no one actually asked for the documents is so outlandish based on the timeline and criminal and civil investigations, he is making his criminal situation worse.

Under bankruptcy law, I do not believe USAG would be able to wipe out the claims brought against it because of the exceptions for willful conduct - at least for the claims after the reasonable notice date. I do not believe USAG would qualify for reorganization, but the trustee and judge would decide. Even if the claims were not wiped out, the reality is there is no money so it means the same thing. Whatever assets the entity has would fall under standard bankruptcy payment priorities. The unsecured liability claimants would not get pennies on the dollar, but it would come close. They could try to pierce the corporate veil to get the individual assets of certain key executives, but there is likely not enough money for the time and expense to justify the litigation. 99% of claims in this country settle. The complexity of dealing with criminal liability, insurance defense, third party claims against entities such as the USOC, and multiple attorneys and plaintiffs makes settlement challenging but truly the only option. The Michigan State plaintiffs had a solvent defendant; USAG will be insolvent.

The new NGB will not use any of the materials from the USAG and therefore will not need to pay for them. The materials have extremely low economic value and very little legally protectable intellectual property interests. If copyright and Level 3 music is all USAG has left, then it might as well light its remaining assets on fire. For instance, there are five required elements in JO (not complicated, can easily be replicated in the public domain) and the elite code comes from FIG. There is no intellectual property value in assigning a value part to an element. Also, the world is digital and USAG materials are grossly antiquated. Find a former gymnast or current coach with a computer science or graphic degree, and let's see the significantly better materials they can produce. As an example of potential innovation from restructuring, Kelli Hill is leading one of the very many new NGB-petition organizations. I'm sure she, and the other people in her group or in other groups, could come up with a new competition and code structure which would have many benefits and likely be an improvement over the current state.

I saw an argument from the Board of Directors (?) that USOC does not appreciate the complexity of running the JO, but mainly elite, program. If that's the best argument they have to retain their status, I am very concerned. The entire camp structure could disappear and USA would still win women's team. Although the same 10 gyms (sadly) would produce all World and Olympic team members, they are more than proficient at fielding a competitive team without attending a single camp. The team would not be as good as it is currently, and it would not build upon all the talent at its disposal in the United States, but the skilled clubs would find a way to produce. If the argument is USAG manages elite and JO programs better than anyone, I think the proof is clear the organization does not. It's travel and apparel bills are much higher per capita than other NGBs, and its public relations, athlete relationships, sponsorships, insurance litigation and safety record show (exceptionally) clear management issues.
 
As an example of potential innovation from restructuring, Kelli Hill is leading one of the very many new NGB-petition organizations. I'm sure she, and the other people in her group or in other groups, could come up with a new competition and code structure which would have many benefits and likely be an improvement over the current state.

Thoughts on the suitability of that board was one of the many directions recent threads about USAG has wandered. I don't know. But the rest of your post was very enlightening. Also, we bought for personal use "from 2013-2021" the compulsory materials so would that matter at all in terms of being able to use them until 2021?
 
LemonLime nails it, and this is also why USOC is acting now -- the litigants know that they are the one deep pocket still likely to be standing if USAG's insurers successfully escape having to pay the tab.
 
The insurance carriers have denied coverage because their plan documents do not cover gross negligence and intentional conduct. The carriers contend USAG acted intentionally, or at least with gross negligence. It's difficult to decide such a matter on pleadings through motion practice, but the "missing documents" go a long way toward proving that defense before a judge. Normally, such issues would have to go to a jury which would take around 2 years and $75,000+/month to litigate based on the fee structure at the participating firms.

USAG is not a large corporation. It's actually very small. The documents were not accidentally left in a closet. Penney perhaps needs a new attorney (or more likely to listen to his attorney) because his "defense" in the news that no one actually asked for the documents is so outlandish based on the timeline and criminal and civil investigations, he is making his criminal situation worse.

Under bankruptcy law, I do not believe USAG would be able to wipe out the claims brought against it because of the exceptions for willful conduct - at least for the claims after the reasonable notice date. I do not believe USAG would qualify for reorganization, but the trustee and judge would decide. Even if the claims were not wiped out, the reality is there is no money so it means the same thing. Whatever assets the entity has would fall under standard bankruptcy payment priorities. The unsecured liability claimants would not get pennies on the dollar, but it would come close. They could try to pierce the corporate veil to get the individual assets of certain key executives, but there is likely not enough money for the time and expense to justify the litigation. 99% of claims in this country settle. The complexity of dealing with criminal liability, insurance defense, third party claims against entities such as the USOC, and multiple attorneys and plaintiffs makes settlement challenging but truly the only option. The Michigan State plaintiffs had a solvent defendant; USAG will be insolvent.

The new NGB will not use any of the materials from the USAG and therefore will not need to pay for them. The materials have extremely low economic value and very little legally protectable intellectual property interests. If copyright and Level 3 music is all USAG has left, then it might as well light its remaining assets on fire. For instance, there are five required elements in JO (not complicated, can easily be replicated in the public domain) and the elite code comes from FIG. There is no intellectual property value in assigning a value part to an element. Also, the world is digital and USAG materials are grossly antiquated. Find a former gymnast or current coach with a computer science or graphic degree, and let's see the significantly better materials they can produce. As an example of potential innovation from restructuring, Kelli Hill is leading one of the very many new NGB-petition organizations. I'm sure she, and the other people in her group or in other groups, could come up with a new competition and code structure which would have many benefits and likely be an improvement over the current state.

I saw an argument from the Board of Directors (?) that USOC does not appreciate the complexity of running the JO, but mainly elite, program. If that's the best argument they have to retain their status, I am very concerned. The entire camp structure could disappear and USA would still win women's team. Although the same 10 gyms (sadly) would produce all World and Olympic team members, they are more than proficient at fielding a competitive team without attending a single camp. The team would not be as good as it is currently, and it would not build upon all the talent at its disposal in the United States, but the skilled clubs would find a way to produce. If the argument is USAG manages elite and JO programs better than anyone, I think the proof is clear the organization does not. It's travel and apparel bills are much higher per capita than other NGBs, and its public relations, athlete relationships, sponsorships, insurance litigation and safety record show (exceptionally) clear management issues.


Great post, delivers much needed clarity. Thank you!
 
Thanks, @LemonLime - you confirmed much of what I’ve been thinking. USAG deserves to be dismantled and we all NEED them to be. It’s a horribly sad scenario, but they have had so many chances to do even one good thing and they have failed fantastically over and over and over. It’s a train wreck of absolutely epic proportions.

It is still shocking to me that across the group of gymnastics professionals, we can’t seem to find a leader among them. Most still don’t seem to grasp the absolute horror show they’ve created of this organization. It baffles me even now that there hasn’t been a breakthrough, but we have to move forward. It’s clear we can’t do that with this group of folks.
 
The USGCOA leadership:

President – Kelli Hill
Vice President – Sandy Flores
Treasurer – Kim Thomson
Secretary – Denise Dalton
Region 1 – Cassie Rice (Nevada)
Region 2 – Brent Phelps (Washington)
Region 3 – Jeff Beal (Texas)
Region 4 – Scott Roberts (Missouri)
Region 5 – Don McPherson (Illinois)
Region 6 – Tony Retrosi (New Hampshire)
Region 7 – Lindsey Stancil (Pennsylvania)
Region 8 – Brad Harris (Florida)
USAG Liaison – Claudia Kretschmer

http://usgcoa.org/our-board-of-directors/
 
The president of this organization is not my choice. I have heard some shocking things from parents whose kids once trained at Hills.

Furthermore wasn't she on the USAG boards of and forced to resign when the scandal was in full bloom?
 
The USGCOA leadership:

President – Kelli Hill
Vice President – Sandy Flores
Treasurer – Kim Thomson
Secretary – Denise Dalton
Region 1 – Cassie Rice (Nevada)
Region 2 – Brent Phelps (Washington)
Region 3 – Jeff Beal (Texas)
Region 4 – Scott Roberts (Missouri)
Region 5 – Don McPherson (Illinois)
Region 6 – Tony Retrosi (New Hampshire)
Region 7 – Lindsey Stancil (Pennsylvania)
Region 8 – Brad Harris (Florida)
USAG Liaison – Claudia Kretschmer

http://usgcoa.org/our-board-of-directors/

I would like to point out the lack of representation for Region 9....
 
It seems like this organization is focused on the women's side of things. I don't know that they have MAG representation on the board, I think all of those people are primarily women's coaches.
They are all club owners. I believe they aim to represent all gymnarics(some of their clubs have boys teams), but they are using the women’s geographical region alignment for their board representation.
 
They are all club owners. I believe they aim to represent all gymnarics(some of their clubs have boys teams), but they are using the women’s geographical region alignment for their board representation.

Hmm. Does explain a lot. Not sure how i feel about the organization, but I definitely think they should represent everyone.
 
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The president of this organization is not my choice. I have heard some shocking things from parents whose kids once trained at Hills.

Furthermore wasn't she on the USAG boards of and forced to resign when the scandal was in full bloom?

In general, she is viewed positively by the athletes she coached that went Elite (Dominique Dawes and Elise Ray at least).

I don't know much about her time on the USAG board (the whole board was forced to resign, regardless of guilt, fwiw). I do know the most recent controversy was that she and Aly went head to head over conditions at the ranch. She said Aly's description was not accurate, Aly said Hill was lying, etc. Not a nice thing to read through at all. That being said, no one is perfect and everyone views things through their own lens (they might both be right according to their own views/expectations).
 
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