Is Grand Slam Track Setting a Dangerous Precedent with Debt Issues?

Michael Johnson's Grand Slam Track (GST) faces serious challenges as it struggles to repay athletes owed significant sums from its inaugural season. Johnson has stated that no events will be held in 2026 unless all outstanding debts to athletes are settled first. With reports indicating that GST owes over $30 million (£11.8 million) to more than 150 individuals and companies, the Association of Athletics Managers (AAM) has called for immediate repayment to restore trust in the sport.

Last updated: 25 October 2023 (BST)

What’s happening now

The current situation surrounding Grand Slam Track has drawn attention due to the mounting debts owed to athletes from its first season. Many prominent athletes, including Olympic medalists and world record holders, are among those awaiting payments. With GST's bankruptcy filing in the USA, there are growing concerns about the competition's future and its implications for the sport as a whole.

Key takeaways

GST owes over $30 million (£11.8 million) to more than 150 athletes and companies.
Michael Johnson has stated events will not occur in 2026 unless all debts are settled.
The AAM is urging GST to prioritise repayments to rebuild trust in athletics.

Timeline: how we got here

The journey leading to this financial predicament for Grand Slam Track can be traced back to its ambitious launch in 2022. Below is a brief timeline of significant events:

2022, 1st January: GST officially launches, promising lucrative prize money and salaries.
2022, August: The final event of the inaugural season is cancelled, raising concerns about the competition's viability.
2023, September: GST voluntarily files for bankruptcy in the USA, revealing substantial debts to athletes.
2023, October: Michael Johnson announces no events will occur in 2026 unless debts are settled.

What’s new vs what’s known

New today/this week

The latest developments indicate that GST has requested $2.9 million (£2.1 million) in financing from the court to cover operating costs. This request has raised eyebrows, especially in light of the outstanding payments owed to athletes. The AAM's statement emphasises the need for GST to address its debts before proceeding with plans for a 2026 season.

What was already established

It was previously known that GST had filed for bankruptcy and owed substantial amounts to various athletes, including well-known British runners. The AAM had voiced concerns about the financial management of GST, particularly regarding commitments made to athletes during the launch phase.

Impact for the UK

Consumers and households

The repercussions of GST's financial difficulties may extend beyond the athletes directly involved. For UK consumers and households, there could be decreased interest in athletics events if organisations are seen as financially irresponsible. This may impact ticket sales and viewership, leading to less sponsorship and funding for future events.

Businesses and jobs

For businesses connected to the athletics sector, including sponsors and suppliers, GST's bankruptcy poses risks. Companies that have invested in GST may now face financial losses, leading to potential layoffs or reduced hiring in related sectors. The uncertainty surrounding GST could deter future partnerships within the athletics community.

Policy and regulation

The UK athletics governing bodies may need to reassess the financial oversight of competitions to prevent similar situations in the future. Upcoming consultations or reviews could focus on improving regulations that ensure competitions operate within their means and honour commitments to athletes and sponsors.

Numbers that matter

£196,000: Amount owed to Sydney McLaughlin-Levrone, the women's 400m hurdles world record holder.
£123,000: Amount owed to Josh Kerr, the 2023 1500m world champion.
£107,500: Amount owed to Matthew Hudson-Smith, the European 400m champion.
£21,000: Amount owed to Daryll Neita, a 4x100m Olympic silver medallist.
£17,850: Amount owed to Dina Asher-Smith, the 2019 200m world champion.

Definitions and jargon buster

GST: Grand Slam Track, a professional athletics competition backed by Olympic athlete Michael Johnson.
AAM: Association of Athletics Managers, an organisation representing professional athletes.
Bankruptcy: A legal process through which individuals or organisations can seek relief from debts they cannot repay.

How to think about the next steps

Near term (0–4 weeks)

In the immediate future, stakeholders within GST and the AAM will need to engage in negotiations to ensure that outstanding debts are addressed. This may include court hearings regarding the bankruptcy filing and discussions about repayment plans.

Medium term (1–6 months)

Over the coming months, the focus will likely shift towards rebuilding trust within the athletics community. This could involve public commitments from GST to prioritise athlete payments and transparent communication regarding financial management.

Signals to watch

Updates from bankruptcy court proceedings that may impact repayment timelines.
Statements from GST regarding operational changes and future event planning.
Reactions from the AAM and affected athletes regarding GST's financial decisions.

Practical guidance

Do

Monitor updates from GST to stay informed about repayment plans and event schedules.
Support transparency initiatives within the athletics community to ensure accountability.
Engage with local athletics clubs to promote grassroots support for the sport.

Don’t

Ignore the implications of financial mismanagement on the sport's reputation.
Assume that future events will occur without addressing current debts.
Dismiss the concerns raised by the AAM and affected athletes.

Checklist

Stay updated on court proceedings related to GST's bankruptcy.
Follow developments regarding athlete payments and GST's financial recovery plan.
Engage with local athletics events to maintain community interest.
Advocate for responsible financial practices in athletics organisations.
Keep track of any announcements regarding the 2026 season from GST.

Risks, caveats, and uncertainties

While GST's bankruptcy filing brings clarity to the financial situation, it also raises numerous uncertainties. The total amount owed and the timeline for repayments remain fluid, and the outcome of court proceedings could affect future operations. Additionally, the financial health of GST post-bankruptcy is unknown, which impacts trust in upcoming events.

Bottom line

The situation with Grand Slam Track serves as a critical reminder of the importance of financial responsibility in athletics. The commitment to repay athletes before planning future events is not just a necessity for GST but a vital step in restoring confidence in the sport as a whole.

FAQs

What is Grand Slam Track?

Grand Slam Track (GST) is a professional athletics competition that promised significant prize money and salaries for athletes but has faced financial difficulties since its launch.

How much money does GST owe athletes?

GST reportedly owes over $30 million (£11.8 million) to more than 150 athletes and companies, including substantial amounts to high-profile runners.

What did Michael Johnson say about future events?

Michael Johnson stated that there will be no GST events in 2026 unless all outstanding debts to athletes from the inaugural season are settled first.