The U.S. Olympic Committee gave its former chief executive officer Scott Blackmun a $2.4 million buy-out after he was forced to resign in 2018 amid allegations he was involved in the cover-up of sexual abuse by U.S. Olympic and womens gymnastics national team physician Larry Nassar, according to financial documents released by the recently renamed U.S. Olympic and Paralympic Committee Wednesday.
The documents also revealed that the USOC spent $13.1 million on legal fees during fiscal year 2018, more than four times the amount it contributed to the much criticized USOC created and funded U.S. Center for SafeSport ($3.1 million) during the same period.
The pay-out to Blackmun, who resigned in February 2018 citing health reasons, was more than what nearly 50 national governing bodies individually received in funding from the USOC last year. Only U.S. Skiing and Snowboard ($6 million), USA Track & Field ($3.99 million), and USA Swimming ($3.4 million) received more funding than Blackmuns buy out. USA Gymnastics received $2.2 million from the USOC last year.
Nassar continued to sexually abuse dozens of young athletes between July 2015 when Blackmun and Alan Ashley, then USOC chief of sport performance, were first notified by then USA Gymnastics CEO Steve Penny of allegations against Nassar and 2016 when the scandal was revealed to the public, according to a USOC commissioned report and court filings.
“Absolutely appalling,” attorney Robert Allard, a longtime critic of the USOC and the national governing bodies under its umbrella, said of the Blackmun settlement. “I cant think of anybody more responsible for the sex abuse epidemic which is currently afflicting the Olympic sport movement than (Blackmun). He belongs in prison and they are rewarding him with a golden parachute. Just another reminder that little has changed and that we will have to blow up the USOC in order to effect real change.”
Blackmun was referred to the Department of Justice and FBI last December for criminal investigation by two U.S. Senators who accused him of making false statements and misleading Congress.
Blackmun made “materially false statements contained in his written testimony to the Subcommittee during the course of the Subcommittees investigation” of the USOC, Sen. Jerry Moran (R-Kan) and Sen. Richard Blumenthal (D-Conn), the chairman and ranking member of the Senate sub-committee with jurisdiction over the health and safety of U.S. Olympic and NCAA athletes, wrote in referring the case to the Justice Department and FBI.
“Shocked to learn that former USOC CEO Scott Blackmun—who enabled abuse of our Olympic athletes by Nassar & others & lied to Congress about it—received a $2.4M golden parachute, while survivors continue to be dragged through litigation,” Blumenthal wrote on his Twitter account Wednesday.
“…Ill be asking USOPC for the terms of the severance agreement to help determine whether the Board acted appropriately authorizing this outrageous payment.”
Under mounting pressure from Congress, the USOC also spent $263,540 on lobbyist in “direct contact with legislators, their staffs, government officials, or a legislative body” in 2018, according to documents filed with the Internal Revenue Service.
“In 2018, the USOPC board of directors approved a separation agreement including severance for former CEO Scott Blackmun,” USOPC chairman Susanne Lyons said. “At that time, based on the requirement for new leadership to guide the organization forward, as well as Blackmuns serious health challenges, the board approved a separation agreement, as provided for in his contract.”
The revelation of the Blackmun buy-out was met with outrage by Olympians and longtime critics of the USOPC who argued the payment and other issues raised by the financial documents are proof that USOPC leadership has failed to deliver on reforming the organization as it promised Congress in the wake of the Nassar, USA Swimming and USA Taekwondo sexual abuse scandals.
“Todays report that the US Olympic and Paralympic Committee paid disgraced former CEO Scott Blackmun 2.4 million dollars to resign in February of 2018 is an insult to every Olympic athlete and a stain on our country,” said attorney John Manly, an Irvine attorney who represents dozens of women who allege they were sexually abused by Nassar. “USOCs own internal investigation of the Larry Nassar scandal revealed that Blackman had clear evidence that Nassar had molested Olympic gold medalists McKayla Maroney and Aly Raisman, along with World and NCAA champion Maggie Nichols in June of 2015. He kept this information secret from law enforcement, the public and Michigan State University. As a result of his concealment and inaction, Nassar was allowed to continue molesting dozens of girls and young women until his arrest in December of 2016.”
Manly and his clients were among several groups Wednesday who called on Congress to demand the resignation of USOPC CEO Sarah Hirshland and the USOPC board and for the organizations corporate partners to withdraw their funding.
“Coca Cola, Visa, General Electric, NBC-Comcast, Nike, Kelloggs and United Airlines should suspend financial support until a new Board and executive team dedicated to transparency and athlete safety can be established,” Manly said.
The chairman of a group of former Olympians who have won 27 Olympic gold medals called the buy-out “outrageous.”
“$2.4 Million? Really?,” Edward Williams, co-chairman of the Committee to Restore Integrity to the USOC, wrote USOPC chairman Susanne Lyons in an email Wednesday.
“Scott did not resign for health reasons I know that;… you know that; ….everyone knows that. He, in effect, was fired for cause ….as was Alan Ashley. Yet the board authorized a payment of $2.4? You have to be kidding me? This is not Visa Or Facebook or even GE.
“The USOC is a not for profit … And it is not supposed to reward people who hurt athletes. This is simply outrageous and will not sit well with athletes or the public at large You keep on saying Trust me; we are turning around. I have not seen it.”
Lyons acknowledged the likelihood of criticism in an email responding to Williams, a New York attorney and former Olympic biathlete.
“I know that a large severance for Scott will feel bad to our athletes and will certainly be criticized,” Lyons said. “But as you point out, Scott separated from the USOC in March of last year (prior, of course, to the Ropes & Grey report being released.) The USOPC board of directors approved a separation agreement including severance for Scott, as provided for in his pre-existing employment contract. At that time, this separation was based on the need for new leadership to guide the organization forward, as well as Scotts serious health challenges. He was not fired for cause.”
Blackmun was diagnosed with prostate cancer in January 2018.
Lyons is one of nine members on the current 14-person board who approved Blackmuns buy-out. Hirshland was hired in August 2018.
“The USOPC Board has demonstrated its negligence in exercising its fiduciary duty over our Olympic and Paralympic movement. Given what was known at the time, and certainly what is known now, the Board must resign,” said Nancy Hogshead-Makar, an Olympic swimming champion and co-chairman of the Committee to Restore Integrity to the USOC.
The Senate referral of Blackmun to the Justice Department and FBI came just days after the release of the report by Ropes & Gray, the Boston-based law firm hired by the USOC to investigate the handling of the Nassar case. The 233-page report dRead More – Source
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