Michael Johnson Agrees to Return $500,000 Grand Slam Track Payment
Michael Johnson, the founder of the now-bankrupt Grand Slam Track (GST), has agreed to return a $500,000 payment he allegedly received just before the league filed for bankruptcy. This move is part of a new deal with GST's creditors, aimed at ensuring a greater distribution of funds and supporting the league's reorganisation efforts.
Court Filing and Disputed Claims
A US court filing claimed that Johnson took the $500,000 payment eight days prior to GST's bankruptcy filing, while athletes were still owed millions in unpaid dues. However, GST has publicly labelled this claim as "unfounded and false", creating a contentious backdrop to the financial dispute.
Johnson's spokesperson has countered these allegations by stating that the payment was actually a partial reimbursement for over $2 million in expenses that Johnson advanced out of his own pocket for the benefit of athletes. This reimbursement was intended to cover costs incurred during the league's operations before its financial collapse.
Impact on Athletes and League Operations
The inaugural GST season ended abruptly after only three events, primarily due to a severe lack of funds and the withdrawal of a key sponsor. This sudden closure left numerous athletes, including prominent figures like Josh Kerr, owed significant sums of money, exacerbating the financial turmoil within the athletics community.
In response to the crisis, Johnson and the Winners Alliance have agreed to fund the $500,000 return. This contribution is designed to help creditors receive a more substantial payout and facilitate GST's efforts to reorganise and potentially revive its operations in the future.
Johnson's Professional Commitments
As part of his focus on resolving the GST situation, Michael Johnson will not be participating in BBC Sport's athletics coverage this year. This decision allows him to dedicate his time and resources entirely to the league's reorganisation and the settlement of outstanding financial obligations with creditors and athletes.
The agreement to return the payment marks a significant step in addressing the financial fallout from GST's bankruptcy, though it remains a complex issue with ongoing legal and ethical considerations for all parties involved.
