In 2016, an explosive investigative article exposed how USA Gymnastics had failed to report sexual abuse allegations against coaches, triggering a scandal that ultimately engulfed the broader U.S. Olympic movement. This case study examines how the U.S. Olympic Committee (USOC)—an organization structured as a private nonprofit with oversight of 47 semi-autonomous National Governing Bodies (NGBs)—responded to the crisis sparked by the sexual abuse perpetrated by longtime gymnastics doctor Larry Nassar. As Nassar’s victims came forward, lawsuits multiplied, media scrutiny intensified, and Congressional investigations loomed, raising urgent questions about the USOC’s responsibility, governance structure, and culture. The case traces how USOC leadership, including CEO Scott Blackmun and board member Susanne Lyons, navigated growing institutional pressure, culminating in Blackmun’s resignation and Lyons stepping in as interim CEO. It explores the reform efforts launched in response: the development of the SafeSport Center to handle abuse allegations across sports; the overhaul of USA Gymnastics’ leadership and potential decertification; the launch of an internal strategic plan; and the creation of new compliance structures to hold NGBs accountable. The case also highlights the challenges of implementing organizational change amid litigation, public outrage, and internal resistance. Through a rich narrative and firsthand accounts, this case raises critical questions about leadership in crisis, board responsibility, nonprofit governance, and the tension between performance metrics and athlete welfare. It invites students to consider how leaders should balance institutional reputation with moral accountability—and what it takes to rebuild trust after systemic failure.
