Michael Johnson, the co-founder of the short-lived Grand Slam Track competition, has been accused of paying himself $500,000 (£372,000) just eight days before the project collapsed into bankruptcy. The allegation comes from vendors in a legal filing submitted to the US bankruptcy court for the district of Delaware, which also seeks permission to sue individual leaders of GST, including Johnson and the main investor, Winners Alliance.
Financial Collapse and Legal Claims
Grand Slam Track, which promised to "bring fantasy to life" and transform athletics with high-profile matchups and substantial prize money, filed for bankruptcy in December. The filing revealed estimated liabilities ranging from $10 million to $50 million owed to over 200 creditors. The competition collapsed shortly after its third event in Philadelphia on 1 June, following a poorly attended inaugural event in Jamaica last April.
Allegations of Self-Preferential Payment
According to the court documents, Johnson was owed $2.2 million but allegedly initiated a $500,000 payment to himself on 4 June. Lawyers for the unsecured creditors claim that at this time, Johnson knew GST was in precarious financial straits, unable to cover its debts. They argue that he "secretly preferred himself over the athletes and other, non-insider creditors" while publicly portraying himself as selflessly advancing athletes' interests.
Responses from Involved Parties
Winners Alliance, the main investor, has denied controlling the track league and labeled the creditors' objections as "fundamentally false." In a previous statement, Winners Alliance asserted that it invested and loaned millions, suffered greater financial losses than anyone, and offered additional funds to stabilise GST and maximise recoveries for all stakeholders. Both GST and Winners Alliance have been approached for comment, but no further statements have been issued at this time.
The collapse of Grand Slam Track has left athletes and vendors owed millions, with World Athletics warning that there is no guarantee the competition will be allowed to return. The legal proceedings continue as creditors seek to recover funds from the bankrupt entity.
