Should the Calendar Be Overhauled After Grand Slam Track's Bankruptcy?

The bankruptcy of the Grand Slam Track (GST) competition highlights the financial fragility within the world of athletics, as noted by World Athletics president Lord Coe. Coe emphasised the need for a sustainable financial model when introducing new events, stating that innovation should come with a solid backing to protect athletes' interests. The GST, launched by sprint legend Michael Johnson, owes millions to creditors, including prominent athletes, and is now seeking Chapter 11 bankruptcy protection to restructure its debts and stabilise its finances.

Last updated: 19 October 2023 (BST)

What’s happening now

World Athletics is navigating a critical moment in the sport, as the bankruptcy of GST has raised questions about the viability of new athletic competitions. Lord Coe's remarks underline the organisation's commitment to ensuring that any upcoming events have a sustainable financial foundation. This situation is particularly relevant for UK athletes and stakeholders, as it underscores the potential risks associated with new initiatives in the athletics calendar.

Key takeaways

The Grand Slam Track competition has filed for Chapter 11 bankruptcy.
Lord Coe emphasised the importance of a sustainable financial model for new events.
GST owes significant amounts to several top athletes, raising concerns about their financial security.

Timeline: how we got here

The following timeline outlines significant dates leading to the current situation:

January 2023: GST announced its launch, promising innovative competitions with high prize money.
June 2023: The planned fourth meet in Los Angeles was cancelled due to cash flow issues.
October 2023: GST filed for Chapter 11 bankruptcy in the United States, aiming to stabilise finances and restructure debts.

What’s new vs what’s known

New today/this week

Lord Coe's recent comments indicate a proactive approach by World Athletics to "police the calendar" and ensure that any new competitions are backed by solid financial models. This reflects a response to the financial challenges faced by GST and the need for more robust planning in future events.

What was already established

The GST competition, launched by Michael Johnson, had previously promised substantial financial rewards but faced immediate challenges, including poor attendance and lack of investment. The filing for bankruptcy suggests deeper financial issues that were not adequately addressed at the outset.

Impact for the UK

Consumers and households

The bankruptcy of GST could have a ripple effect on UK athletics, particularly for fans and households that support events. The uncertainty surrounding competitions may lead to reduced interest in future events, impacting ticket sales and local economies involved in hosting such competitions.

Businesses and jobs

For businesses connected to the athletics industry, the GST's financial troubles may create uncertainty regarding sponsorships and partnerships. If new events are not financially viable, businesses may hesitate to invest in athletics-related initiatives, affecting jobs and economic growth within the sector.

Policy and regulation

World Athletics' commitment to ensuring a sustainable financial model indicates potential changes in how new competitions are approved and regulated. This could lead to more stringent criteria for event organisers seeking to launch new athletic competitions, particularly in the UK, where maintaining athlete welfare is a priority.

Numbers that matter

£7.4 million: The total prize pot for the upcoming Ultimate Championships, highlighting the financial stakes involved in athletics.
£162,000: The amount owed to Scottish runner Josh Kerr by GST, illustrating the financial impact on athletes.
£265,000: The debt owed to American sprinter Sydney McLaughlin-Levrone, further emphasising the competition's financial mismanagement.
£186,000: The debt owed to Gabby Thomas, indicating a broader issue affecting top athletes.

Definitions and jargon buster

Chapter 11 bankruptcy: A legal process in the United States allowing companies to restructure debts while continuing to operate.
World Athletics: The international governing body for the sport of athletics, responsible for overseeing events and regulations.

How to think about the next steps

Near term (0–4 weeks)

In the immediate future, observers should monitor developments from World Athletics regarding new regulations for competitions. The outcome of GST's bankruptcy proceedings will also provide insight into the financial health of the athletics industry.

Medium term (1–6 months)

As World Athletics evaluates new events, stakeholders should prepare for potential changes in the competition calendar. This may involve stricter criteria for event approval and a focus on financial sustainability.

Signals to watch

Updates on GST's Chapter 11 bankruptcy process and any restructuring plans.
New announcements from World Athletics regarding upcoming competitions and their financial backing.
Responses from UK athletes and stakeholders regarding the changes in the athletics calendar.

Practical guidance

Do

Stay informed about World Athletics' updates and new competition guidelines.
Support established events that demonstrate financial viability and athlete welfare.

Don’t

Invest in or endorse new athletic events without thorough financial scrutiny.
Assume that high prize money guarantees a sustainable competition.

Checklist

Ensure you understand the financial backing of any new athletics event.
Consider the history and reputation of event organisers before participating or investing.
Monitor athlete responses and endorsements for new competitions.
Stay updated on World Athletics' regulations and event approvals.

Risks, caveats, and uncertainties

The situation surrounding the GST bankruptcy is fluid, and the outcomes of the Chapter 11 process are uncertain. Additionally, while World Athletics aims to enforce stricter guidelines, the effectiveness of these measures in preventing future financial mismanagement remains to be seen. Stakeholders should remain vigilant and prepared for potential changes in the athletics landscape.

Bottom line

The recent bankruptcy of GST serves as a stark reminder of the financial vulnerabilities in athletics. As World Athletics looks to enhance its calendar with new events, the emphasis on sustainable financial models is crucial for safeguarding the interests of athletes and ensuring the longevity of competitions in the sport.

FAQs

What is the Grand Slam Track competition?

The Grand Slam Track competition was an initiative launched by Michael Johnson, aiming to offer lucrative prize money and innovative athletic events. It has recently filed for bankruptcy.

How does Chapter 11 bankruptcy work?

Chapter 11 bankruptcy allows companies to restructure their debts while continuing operations, aiming to stabilise finances and recover from financial difficulties.

What are Lord Coe's concerns about new athletic events?

Lord Coe emphasised that new events must have a sustainable financial model to protect athletes and ensure the success of the competitions.