(ATR) USA Gymnastics is reportedly feeling the financial effects of the ongoing sex abuse scandal rocking the sport.
A report from ESPN this weekend says that Under Armour may end its sponsorship of USA Gymnastics early, while Hershey's and Procter & Gamble will not renew their sponsorships. The sponsor withdrawal comes as former USA Gymnastics team doctor Larry Nassar is set to be sentenced to life in prison in Michigan.
"USA Gymnastics is extremely grateful to all of our corporate partners for their support of our athletes, our sport and the organization," a USA Gymnastics spokesperson said in a statement to Around the Rings. "While USA Gymnastics entered into certain sponsorship agreements that have been fulfilled, we are now discussing renewal opportunities that will reflect our commitment to creating a culture of empowerment focused on athlete safety and other important initiatives.
"We are disgusted that any of our athletes were harmed by Larry Nassar, who committed despicable crimes for which he is now receiving punishment. When USA Gymnastics first learned of athlete concerns about Nassar in 2015, the organization reported him to the FBI and dismissed him from involvement with USA Gymnastics."
Under Armour’s sponsorship, according to ESPN was set to run through the 2020 Olympics. Sources told ESPN that the company would end the agreement early at the end of this year.
Both Hershey’s and Procter & Gamble have deals that end in 2018 with the national governing board. Hershey’s confirmed to ESPN that it would not renew its agreement, which ends in a matter of weeks. Procter & Gamble said in a statement to ESPN that it will "evaluate to renew our partnership next spring, in light of our longer term priorities and continued actions on their part".
The company went on say that deliberations about continuing a sponsorship would proceed after seeing how USA Gymnastics handled the aftermath of the Nassar scandal.
Former head of USA Gymnastics Steve Penny resigned after the United States Olympic Committee board of directors addressed the national governing body. The USOC presented USA Gymnastics with an undisclosed plan of action before Penny’s resignation. USA Today reported that the USOC board exerted pressure on Penny to resign.
The NGB also filed a motion to dismiss any lawsuit against the national governing board by former gymnasts, on the ground that USA Gymnastics had "no legal duty to protect plaintiffs from Nassar's criminal conduct."
New USA Gymnastics President Kerry Perry’s first board meeting saw the adoption of new organizational bylaws to "strengthen safe sport provisions and complaint processing" within USA Gymnastics. The NGB also appointed a new Safe Sport Committee and appointed new committee members. Perry said the adoptions by the federation were aimed at creating a "culture of empowerment" to rectify mistakes from the Nassar scandal.
"As an organization, we will always be advocates for our athletes, and our focus every day will be on doing the right thing, including creating a culture of empowerment that encourages speaking up, especially on difficult topics like abuse," USA Gymnastics added in the statement.
"Perry…has emphasized that our focus must be on athlete safety and empowering athletes and members to have a strong voice, with the goal of USA Gymnastics becoming the safest sport at every level of the organization."
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Written by Aaron Bauer
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