Michael Johnson has unveiled a restructuring plan for Grand Slam Track (GST). The document outlines a $6.2 million infusion of capital; however, it has sparked controversy due to the massive disparity in payouts between professional athletes and other creditors.
$6.2 Million to Save the Project
On Monday, an official reorganization plan for the Grand Slam Track league was filed in the U.S. Bankruptcy Court for the District of Delaware. The initiative, spearheaded by legendary sprinter Michael Johnson, has a chance at survival thanks to a new ownership group. According to court filings, this group—controlled at least in part by Johnson—intends to invest over $6.2 million in new funding into the project. These funds are essential for the entity to emerge from Chapter 11 bankruptcy and continue operations in the future.
Under the proposed plan, current leadership would remain at the helm. Michael Johnson would retain his position as CEO, and Stephen Gera would continue to serve as President. A key pillar of support for the reorganized league is Winners Alliance—an investment group linked to Bill Ackman, which served as the primary sponsor for the inaugural season. Reports suggest this entity may provide all or part of the funding required to break the financial deadlock. The GST league debuted in 2025 with an ambitious schedule of four three-day meets but managed to complete only three before declaring insolvency.
Athletes Prioritized While Vendors Face Heavy Losses
The most debated element of the restructuring plan is the drastic imbalance in debt repayment across different creditor groups. Documentation reveals the league owes athletes approximately $7 million in prize money and contracts. The proposal earmarks $6 million specifically for these payments, allowing athletes to recover roughly 85% of their outstanding funds. Considering that competitors previously received half of their owed amounts, their total recovery would reach nearly 93%. This is a strategic move designed to maintain relationships with stars such as Sydney McLaughlin-Levrone, Josh Kerr, Cole Hocker, and Grant Fisher.
The situation looks significantly worse for other creditors, including marketing agencies, production crews, and television broadcasters. This group, owed a combined total of approximately $13 million, would have to settle for a share of just $200,000. In practice, this means external contractors would recover a mere 1.5% of what they are owed. This distribution aims to protect the league’s most vital assets—the athletes—at the expense of technical and promotional service providers. Analysts suggest that without athlete consent for future participation, the chances for a second GST season would be zero.
Voting Under Pressure: Support or Face Financial Downgrade
The restructuring plan includes a specific voting mechanism that places significant pressure on the athletes. Creditors must decide whether to accept the presented terms. According to court sources, if an athlete votes against the plan and it is still approved by the court, that athlete will be automatically moved to the category of general unsecured creditors. This means that instead of the expected 85% return, they would receive only 1.5% of their owed amount. This “take it or leave it” approach is intended to ensure broad support for Michael Johnson’s vision among key league participants.
World Athletics Issues Warning Ahead of Second Season
Ambitious plans for a 2026 Grand Slam Track comeback have already faced criticism from World Athletics. The global governing body issued a statement calling any attempt to resume league activities before fully settling debts “unacceptable.” The federation emphasized that the fair treatment of all involved parties—from athletes to service providers—is a matter of paramount importance. Currently, the deadline for filing objections to the plan is April 9, 2026, with the final confirmation hearing scheduled for a week later on April 16. At this stage, the plan does not include details regarding a potential second-season calendar.
April Will Decide the Future of Grand Slam Track
The fate of Grand Slam Track will be decided in mid-April during a pivotal hearing in Delaware. The proposed plan sends a clear signal: Michael Johnson is betting on the athletes as the foundation for a potential restart, even at the cost of massive losses for business partners. Accepting these terms appears to be the only path to avoiding total liquidation, in which creditors would likely recover nothing at all.
