Olympic legend Michael Johnson has been accused of paying himself $500,000 (£372,000) just eight days before his Grand Slam Track (GST) project collapsed, leaving athletes and creditors owed millions. The allegation comes from vendors in a legal filing at the US bankruptcy court for the District of Delaware, who have also sought permission to sue Johnson and the main investor, Winners Alliance.
When GST was launched, Johnson promised it would “bring fantasy to life” and transform athletics, with top stars competing regularly for huge prize money. However, the first event in Jamaica last April was sparsely attended, and the league collapsed after its third event in Philadelphia on 1 June.
The court filing claims Johnson took $500,000 on 4 June, when he knew GST was at risk of financial collapse and could not cover its debts. Lawyers for unsecured creditors stated: “Mr Johnson initiated a payment of $500,000 purportedly on account of an unsecured note… Shockingly, Mr Johnson elected to secretly prefer himself over the athletes and other, non-insider creditors, while at the same time feigning to the public that he was selflessly looking to advance the interests of the athletes.”
GST filed for bankruptcy in December, revealing estimated liabilities between $10m and $50m to over 200 creditors. Winners Alliance has called the objections “fundamentally false”. A spokesperson for GST denied the allegation, saying Johnson advanced millions for operating expenses and was only partially repaid.
