Embattled USA Gymnastics president Steve Penny resigned Thursday amid potentially the worst sexual abuse scandal in American sports history and mounting pressure from Congress and the U.S. Olympic Committee.
Penny's resignation came during a USA Gymnastics board of directors conference call Thursday and a week after the USOC recommended that Penny resign or be moved.
Despite Penny's resignation, USA Gymnastics continues to face legal and political problems on several fronts.
USA Gymnastics, possibly anticipating legislative action in California, has hired a Sacramento lobbying firm, the Orange County Register has learned.
Penny, USA Gymnastics chairman Paul Parilla and other top officials have come under mounting criticism from former gymnasts, safe sport advocates and leading figures in Congress, including Sen. Dianne Feinstein (D-Calif.), since the sexual abuse scandal involving Dr. Larry Nassar broke last fall.
Nassar, the longtime USA Gymnastics national women's team physician, is accused of sexually abusing more than 100 young athletes. Critics charge that Penny, his two predecessors, former U.S. national team coaches Bela and Martha Karolyi and other top officials such Parilla created a culture of abuse within American gymnastics that enabled Nassar to take advantage of underage athletes.
More than 20 civil lawsuits have been filed against Nassar and USA Gymnastics since September.
Nassar is being held without bail in Michigan after being arrested on federal child pornography charges last year. The FBI found at least 37,000 child pornography videos or images on Nassar's home computers, according to a detention hearing transcript. He also is facing first-degree criminal sexual conduct charges in Michigan.
"We have accepted Steve's resignation and want to thank him for his contributions and dedication to USA Gymnastics over the years," said Parilla, an Orange County attorney, in a statement. "The Board believes this change in leadership will help USA Gymnastics face its current challenges and implement solutions to move the organization forward in promoting a safe environment for its athletes at all levels.
"USA Gymnastics and the entire gymnastics community must work together to focus on keeping athletes safe. We believe (a committee's) recommendations will identify areas where we can strengthen and refine how we handle sexual misconduct as an organization, and expand our efforts to educate the entire community, including parents and athletes, about what to watch for and what to do if they suspect abuse is happening. Everyone can be an active and vigilant participant for this to be effective, not only in gymnastics but also the Olympic movement as a whole."
Said Penny: "My decision to step aside as CEO is solely to support the best interests of USA Gymnastics at this time."
USOC board chairman Larry Probst said Penny's resignation "will hopefully allow USA Gymnastics to shift its attention to the future with a secure environment for its athletes and continued success in competition."
Nassar's alleged victims and their supporters said Penny's resignation was not enough.
"We don't see this as the end of the scandal or the end of the need for USA Gymnastics to enact reforms," said John Manly, an Orange County attorney who represents more than 70 of Nassar's alleged victims. "This is just the end of the beginning. It wasn't just Steve Penny that looked the other way when children were being sexually abused. There were a lot of other longtime board members who looked the other way when this was happening and they need to go to."
In particular Manly singled out Parilla, who has served on the USA Gymnastics board of directors since 1999 and has been chairman since 2015.
"He's been the chairman, was vice chairman for a long time and he needs to go," Manly said. "And they all need to be replaced with people with long histories of advocating for children."
USA Gymnastics retained the lobbying firm of Wilke, Fleaury, Hoffelt, Gould & Birney in January, according to California Secretary of State records. The firm has a lengthy history of representing pharmaceutical companies and organizations.
