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A handful of large law firms are advising the U.S. governing bodies for hockey and gymnastics, both of which are dealing with major legal matters that could affect their future.
The U.S. women’s national hockey team is ready to take the ice later this week after reaching a settlement late Tuesday in a compensation dispute with USA Hockey Inc. Earlier this month, Ballard Spahr stepped up for the team as it threatened to boycott the upcoming World Championships unless USA Hockey agreed to resume negotiations over stagnant wages and provide promotional support for women’s hockey.
“We believe that it’s a historic agreement for hockey,” said Ballard Spahr partner Dee Spagnuolo. “There are terms in the agreement that are forward-looking [and] not just about compensating these players, but looking at growing opportunities for girls.”
While the exact terms of the four-year agreement are confidential, Spagnuolo said it did speak to her client’s key issues on compensation and programming, as well as the promotion and marketing of players. Spagnuolo teamed up with retired Ballard Spahr partner and noted sports industry lawyer John Langel to advise the women’s hockey team on a pro bono basis.
“I’m glad we could come together and reach an arrangement that will have a positive and lasting impact,” said a statement by U.S women’s hockey team veteran Hilary Knight. “This is an inspirational time and we’re excited to get back on the ice and represent our country.”
USA Hockey general counsel Casey Jorgensen, the organization’s first-ever in-house lawyer, took the lead in negotiations with Ballard Spahr. Faegre Baker Daniels, which has served as outside counsel to USA Hockey since 1998, also advised the Colorado Springs, Colorado-based nonprofit through corporate governance partner James Leonard in Denver.
Faegre Baker Daniels, formed through a merger that went live on Jan. 1, 2012, also has a long history of working with USA Gymnastics. The Indianapolis-based nonprofit is currently coping with the fallout from a sex abuse scandal involving Dr. Lawrence Nassar, pictured right, a former trainer with the U.S. national gymnastics team.
Nassar, who is facing federal child pornography charges, is accused of abusing more than 80 female gymnasts. Until being fired in October, Nassar was a faculty member with a clinic at Michigan State University. The school has so far paid out more than $105,000 in legal fees to lawyers from Skadden, Arps, Slate, Meagher & Flom; Miller, Canfield, Paddock and Stone and local firm Hackney Grover representing it in Nassar-related matters. (Skadden litigation partner Patrick Fitzgerald, a former top federal prosecutor, is billing $990 per hour for his services.)
John “Jack” Swarbrick, a former partner at Faegre Baker Daniels predecessor Baker & Daniels until leaving that firm in 2008 to become athletic director at the University of Notre Dame, established the relationship with USA Gymnastics, of which he once served as outside general counsel. Faegre Baker Daniels has continued to do work for the nonprofit in subsequent years.
Federal tax filings by USA Gymnastics show that it paid $122,619 to the firm in 2014 and $138,143 in 2013. Faegre Baker Daniels has also sponsored various events for the organization, including the P&G Gymnastics Championships in 2015, where Olympic phenom Simone Biles captured her third consecutive all-around title.
In November, USA Gymnastics announced that it had selected Deborah Daniels, managing partner of Indianapolis-based Krieg DeVault, to lead an independent review of the organization’s policies and reporting practices following allegations that it covered up sexual abuse allegations by female gymnasts. Earlier this month, USA Gymnastics president Stephen Penny resigned. Paul Parilla, an attorney and chairman of the organization’s board, vowed to do better.
“USA Gymnastics has initiated a comprehensive, thorough and independent examination of our requirements, mandates and procedures in this area and we expect this review will identify ways to strengthen our program and better protect [our] youth,” Parilla said in a statement.
Some of the gymnasts, who appeared on television last month in a piece by CBS’ “60 Minutes,” testified this week before Congress. USA Gymnastics did not send a representative to appear before the Senate Judiciary Committee.
Faegre Baker Daniels declined to comment on its representation of USA Gymnastics or USA Hockey.
Contact Meghan Tribe at [email protected].
