Michael Johnson, the celebrated former Olympic champion, has agreed to a new proposal that will see him return a significant $500,000 payment that was allegedly received “secretly” in the days leading up to the collapse of Grand Slam Track (GST). This development emerges as part of a new deal being negotiated between the struggling league and its various creditors.
Previously, a legal filing lodged with a US court had alleged that Johnson, a prominent figure in athletics, had withdrawn the $500,000 just eight days before GST officially filed for bankruptcy. This was particularly contentious as athletes were reportedly still owed millions of dollars at the time, a claim that GST itself had vehemently denied, labelling it “unfounded and false.”
However, a spokesperson for Grand Slam Track has now confirmed the new arrangement. “While Mr Johnson has been clear that the $500k was a reimbursement and not a payment,” the spokesperson stated, “to avoid disruption and continue moving forward he and Winners Alliance have agreed to fund the $500k to the plan so that all creditors can benefit and receive a greater distribution in connection with the company’s reorganisation and efforts to resurrect the league.”
This agreement aims to provide a greater distribution to all creditors as part of the company’s efforts to reorganise and potentially revive the league.
A representative for Michael Johnson also shed light on the situation, explaining his perspective. According to reports, the spokesperson indicated that Johnson had asserted defences to the claim, asserting that the $500,000 represented a partial reimbursement of over $2 million in expenses that he himself had advanced for the benefit of the athletes involved.
The Downfall of Grand Slam Track
The inaugural season of Grand Slam Track was exceptionally brief, managing to host only three events before its abrupt end. Races were held in Kingston, Miami, and Philadelphia, but the scheduled fourth meet in Los Angeles was ultimately cancelled. The league ran out of funding, a situation exacerbated by the withdrawal of a key sponsor, Eldridge Industries, which pulled its substantial financial backing. This financial crisis led GST to formally file for bankruptcy in December.
The collapse of GST left numerous prominent athletes facing significant financial shortfalls. Many were owed substantial sums, primarily in the form of prize money and appearance fees. Among those affected is Britain’s own Josh Kerr, who, along with other major athletes, found themselves waiting for payments. Winners Alliance, identified as GST’s primary funder, is reportedly owed a staggering amount exceeding $15 million.
Athlete Frustration and Perspectives
The financial fallout has understandably led to considerable frustration among the athletes who were left unpaid. Speaking earlier this month at the World Indoor Athletics Championships, Josh Kerr articulated his disappointment. “Of course I’m frustrated,” Kerr admitted. “I’m owed a lot of money, so in any business, anyone’s going to be frustrated. I don’t particularly know right now where to push those frustrations and where they should sit.”
Kerr also indicated that he had engaged in discussions with Michael Johnson and had received information from his agents regarding the complex situation. Despite the financial woes, Kerr expressed a nuanced view, stating, “I don’t think these are bad people. I think this is a horrible situation.” This sentiment suggests an understanding of the broader challenges faced by the league, even amidst personal financial losses.
Michael Johnson’s Future with BBC Sport
In related news, Michael Johnson will not be part of the BBC Sport’s athletics coverage this year. His spokesperson issued a statement clarifying that this was Johnson’s own decision. “Michael wishes to clarify that it was his decision not to continue with the BBC after the Paris 2024 Games,” the statement read. “With his contract up for renewal after the Olympics, and Grand Slam Track launching soon after, he chose to focus fully on the project.”
The BBC reportedly understood his decision, and Johnson remains appreciative of their support and his long-standing professional relationship with the broadcaster. This move allows him to dedicate his full attention to his involvement with Grand Slam Track, a project that has now entered a new phase of restructuring and creditor negotiation following its financial collapse.
