On Oct. 20, 2026, U.S. Bankruptcy Judge Michael Romero ordered USA Badminton to remedy a notice of deficiency in its ongoing Chapter 11 bankruptcy case by submitting a series of required financial disclosures, including a corporate ownership statement, disclosure regarding receivers, balance sheet, statement of operations, cash-flow statement, federal income tax return by Oct. 27.
Compliance And Continuing Financial Losses
The federation complied with the court order by submitting the required documents for judicial approval, though the newly released figures show the organization continues to operate at a deficit. Profit-and-loss statements covering the first six months of 2026 revealed $1,211,436 in operating income, generated largely through $595,804 in tournament fees, $278,950 in tournament sponsorships, and $139,589 in federation memberships. That income marked an increase from the $956,453 reported during the same period in 2025.
Operating expenses during the first half of 2026 reached $1,365,125, representing a 35% increase compared to the first six months of the previous year. The highest expenditure categories included $293,961 for tournament facility rentals, $261,994 in hosting fees, $241,900 for payroll and related expenses, and $218,480 in other tournament costs. Consequently, USA Badminton recorded a total loss of $153,686 for the first half of the year, nearly three times higher than the $56,814 loss incurred during the corresponding period in 2025.
Liabilities And Debts Facing The Federation
In its original Chapter 11 petition filed on Sept. 30, 2026, with the U.S. Bankruptcy Court in Colorado, the federation reported $64,748 in assets against $466,939 in total liabilities. The Internal Revenue Service was owed $71,344, while the California Department of Tax and Fee Administration was owed $16,647, among other debts. Financial statements ending Dec. 31, 2025, previously listed negative net assets of –$187,453, which represented an improvement over the –$203,060 net asset deficit recorded at the close of 2024.
The primary objective of a Chapter 11 filing is reorganization to allow the organization to emerge in financial health. However, USA Badminton has not yet submitted a formal recovery plan detailing how it intends to resolve its mounting tax obligations, a $328,948 judgment against it from the firing of a former employee, and its ongoing operational deficits. The bankruptcy court must ultimately determine whether the organization remains viable.
Postponed Town Hall And Upcoming Tournaments
Plans for a membership town hall meeting scheduled for Oct. 15, 2026, were postponed. In a notification sent to registered attendees, the federation explained that its Chapter 11 legal counsel was unavailable to attend, prompting a postponement so that attorneys could be present to field questions directly.
Despite the legal and financial turbulence, competitive operations continue. Registration remains open for the 2026 Adult National Championships slated for December, which will serve as the selection event for squads competing in two major international tournaments: the 2027 Pan Am Mixed Team Competition and the 2027 BWF Sudirman Cup.
Decertification And External Leadership Challenges
USA Badminton faced provisional de-certification by the Olympic & Paralympic Committee in June 2025, a decision that was subsequently made final in September 2026. Following the decertification, David Levin, of a “United States Badminton Organizing Committee,” sent an email on Oct. 19 to federation staff, directors, USOPC leadership, and the Badminton World Federation proposing his organization as a potential replacement.
While Levin noted hope for a BWF-led reorganization under a “Governance Reset” plan, BWF Secretary General Thomas Lund indicated that the BWF will continue working to create a situation which is satisfactory to it and to the USOPC. Because no recognized national governing body currently oversees the sport in the United States, any prospective replacement must navigate the formal application procedures outlined in the Ted Stevens Olympic and Amateur Sports Act under 36 U.S.C. §220521. The USOPC has stated it will not evaluate certification for a new badminton governing body until after LA28.
Keep reading
