Finally: Now that the XXIII Winter Olympics is over, there’s some movement on the U.S. Olympics Committee (USOC) story we’d been writing about for awhile. USOC CEO Scott Blackmun, widely believed to have known about Dr. Larry Nassar’s abuse of gymnasts but kept it quiet, is out. In keeping with USOC’s poor handling of the Nassar affair, Blackmun’s departure was attributed in a USOC press release to “ongoing health issues resulting from prostate cancer.” While it’s true Blackmun’s battling prostate cancer—that was reported weeks ago—it’s also less than the full story. The press release’s title didn’t even mention Blackmun’s departure. Instead the release, a lesson in attempted obfuscation, was titled “Significant Changes To Further Protect Athletes” and details measures USOC’s taken to make sure another Nassar-type incident won’t occur. The release even praises Blackmun for what he’s done to protect athletes from abuse. [Note to Subscribers: The USOC’s statement can be found in the On The Record section of the PR News Essentials page.] Two-time Olympian and gold medal gymnast Alexandra Raisman wasn’t buying, though. After weeks of hearing evidence of inertia (bad) and a coverup (much worse) by USA Gymnastics (USAG) and USOC, Raisman filed a lawsuit March 2 alleging the USOC and USAG “knew or should have known” about Nassar’s abuses. Raisman endured abuse from Nassar for years. Following Nassar’s sentencing Jan. 24, the USAG board resigned, per order of USOC. Now USOC is under the klieg lights and its offer of Blackmun’s head as a token might be enough to quiet things. Already on the ropes, USOC probably will settle rather than fight the popular gymnast in court. A court case could yield awful PR for USOC, particularly if it’s proved Blackmun and others covered up what they knew about Nassar. Weeks ago we told you USOC lawyers counseled Blackmun and other USOC board members in 2016 to “keep your heads down and mouths closed” about Nassar. They did and now USOC will pay for its lack of transparency and morality and Blackmun’s inept leadership on this issue. It’s anyone’s guess as to how many more USOC executives will lose their jobs.
Home to Roost: The above mess joins Wells Fargo and Equifax as an example of how not to handle a crisis. Similar to USOC, Wells and Equifax obfuscated and covered up their crises as much as possible. Months later, they continue to pay. The latest: Wells said March 2 four board members will step down next month. It’s known their departures are part of a deal struck with the Federal Reserve to punish the board for sleepwalking during the bogus credit card scandal of Sept. 2016. True to form, Wells says the board departures are part of its regular succession planning. Transparency, gotta love it. In an annual filing March 1, Wells said it’s checking on improper procedures in its wealth management unit. In addition it admitted to overcharging minority customers in its investment and fiduciary services businesses. Meanwhile Equifax made like Wells Fargo. In late August, Wells revised upward its estimate of bogus credit card accounts to 3.5 million. Similarly, Equifax March 1 added 2.4 million people to its initial estimate of Americans compromised by its summer 2017 data breach (the number now is 148 million).
Growth and Deals:Creative agency Venables Bell & Partners said it’s crafted a partnership with communications firm RALLY. -- Leidar of Switzerland expanded its operation in the Middle East by opening an office in Dubai. Former Golin exec George Kotsolios will lead the office. -- Digital marketer Bell Media acquired Carted, an online shopping and digital marketing provider for grocers. -- ConnellyWorks of Washington, D.C., merged with marketing agency Yes&. Named for the first tenet of improvisation, Yes& is a creation of the merger of PCI Communications, LeapFrog Solutions and Carousel30. Joanne Connelly will continue as president of ConnellyWorks and join the Yes& executive team. -- Olive & Bones formed a partnership with Gallery PR.
Greenough Brand Storytellers
People: WWE promoted Brian Flinn to chief marketing and communications officer. The former NBA exec has been WWE’s EVP, marketing & communications since 2015. – Preferred Hotels & Resorts promoted Caroline Michaudto EVP, corporate communications & PR. A 6-year company veteran, Michaud was Preferred’s senior PR manager for the Americas. -- The country’s #2 produce firm, The Wonderful Company, named former FleishmanHillard SVP and partner Ryan Bowling SVP, PR and corporate communications. -- Dezenhall Resources, Ltd. named EVPs Steven Schlein and Maya Shackley and SVPs Josh Culling and Anne Marie Malecha partners. -- PRNews friend Gould + Partners named Jack Bergen a strategic partner. Bergen was president of Hill and Knowlton U.S. and global head of H.R. at Alcoa. – Greenough Brand Storytellers named former WGBH communicator Jamie Parker chief mission officer.