USA Gymnastics proposes $83K to $1.25M settlements for Nassar assault survivors

Yahoo Sports
USA Gymnastics' settlement proposal is part of its bankruptcy filings. (Katharine Lotze/Getty Images)
USA Gymnastics' settlement proposal is part of its bankruptcy filings. (Katharine Lotze/Getty Images)

USA Gymnastics proposed a four-tiered system based loosely on gymnast’s competition levels to pay settlements to survivors of sexual assault by former national team doctor Larry Nassar.

The organization detailed payments ranging from $82,550 to $1.25 million as part of the proposed $215 million settlement its insurance carriers are willing to pay out, ESPN reported. USAG filed a disclosure statement with U.S. Bankruptcy Court for the Southern District of Indiana on Friday that gives payment amounts for 517 survivors of assault.

Per ESPN, the payment levels are as follows:

  • $1,250,757 for women who were assaulted at the Olympics, world championships, national team training camps, and other national team events. It consists of 66 survivors, including Simone Biles and several other members of the 2012 Olympic gold medal team.

  • $508,670 for non-elite athletes sexually abused at USA Gymnastics-sanctioned events (ex: state/regional events, local tri-meets, clinics, etc. under USA Gymnastic’s supervision)

  • $174,401 for those abused at non-USA Gymnastics locations

  • $82,550 for those with “derivative claims” (those brought by a shareholder on behalf of a corporation)

If made, the settlement agreement would release the U.S. Olympic and Paralympic Committee, former USA Gymnastics CEO Steve Penny and former national team directors Bela and Martha Karolyi from all claims, per ESPN. The proposal is part of the Chapter 11 bankruptcy proceedings for USA Gymnastics.

The agreement was already criticized by John Manly, an attorney for nearly 200 Nassar survivors, when it was announced last month. It’s half the $500 million Michigan State reached with survivors.

Manly told the Orange County Register on Friday:

“Let’s be clear for parents considering putting your child in a gym sanctioned by USA Gymnastics what USA Gymnastics is saying if we place a known pedophile in that gym and that individual rapes your child then your child is worth $82,000,” Manly said. “My client Rachael Denhollander asked what is a little girl worth. Apparently if you’re raped by the national team doctor you’re worth $82,000 to USA Gymnastics.

“This is the most disgusting, reprehensible, vile view of children I can imagine. And for (USA Gymnastics) to put this out there and act like it is a constructive step shows how out of touch they are. Steve Penny was so bad USA Gymnastics banned him for life, the Karolyis, every one of them, and they pay nothing. They have no consequences. What message does that send to the next Steve Penny? The message is you get off scot free. You’re better off putting your kids in roller derby.”

In an interview with ESPN, he called the USOPC “morally bankrupt” and that the settlement allows Nassar’s protectors to “escape justice completely and pay nothing.”

The survivors have until May 8, per the filing, to accept. If they do, Twistars USA Gymnastics would contribute an additional $2.125 million to the settlement. Police raided the Lansing, Michigan, location last month as part of its two-year investigation into owner John Geddert. Survivors testified that Geddert knew of the abuse.

If the survivors do not accept, they could continue to pursue judgements in civil suits from insurance policies available to the organization.

Nassar is serving a 60-year federal prison sentence and was sentenced to multiple 100-year stays by the state of Michigan.

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