Grand Slam Track (GST) creditors have accused founder Michael Johnson of secretly transferring $500,000 to himself in June 2025. Documents filed in bankruptcy court reveal the staggering scale of the league’s financial collapse and the looming threat of a $25 million lawsuit.
Half a Million for Self While the League Sank
According to reports published by Front Office Sports on Tuesday, March 10, 2026, Michael Johnson allegedly authorized a $500,000 payment to himself. This transaction took place in early June 2025—the exact same time the Grand Slam Track league announced the cancellation of its final meet in Los Angeles. Creditors allege that these funds were withdrawn without board approval and lacked any professional justification.
The creditors’ committee, which includes Momentum-CHP Partnership, Girraphic Park, and SRK Strategies, claims that Johnson prioritized his personal financial gain over obligations to pro athletes and business partners. Court filings suggest that while Johnson was publicly claiming to act selflessly for the advancement of track and field careers, creditors believe this was a smokescreen for private enrichment.
By June 2025, the league’s financial situation was already dire, eventually leading to a bankruptcy filing in December 2025. In January 2026, Grand Slam Track admitted its debts exceed $40 million, while total revenue for 2025 was less than $2 million. The lack of transparency regarding the founder’s $500,000 payout has become a primary flashpoint in the ongoing proceedings.
$25 Million Damages and Fraud Allegations
Three firms, currently owed a combined $3.9 million by Grand Slam Track, have petitioned the bankruptcy court for permission to sue Johnson and investor Winners Alliance. The creditors are seeking $25 million in damages, accusing the project leaders of fraud, bad faith, and gross incompetence. Documents filed on March 9, 2026, point to a “shocking level of self-dealing” in the league’s financial management.
New information surfaced during the proceedings challenges Michael Johnson’s previous claims that he invested millions of dollars of his own savings into the league. Although internal GST documents mentioned league liabilities to Johnson exceeding $2.2 million, the creditors’ committee maintains there is no evidence that Johnson actually transferred any personal funds to the company.
Creditors further accuse Winners Alliance of intentionally steering the league toward financial ruin. They allege the investor promised a $25 million credit line that was ultimately slashed to just $6 million, making it impossible to cover operating costs. While the league announced it had secured $30 million in funding in June 2024, records show only $13 million was actually received from Winners Alliance.
Winners Alliance Responds: “We Did Not Control the Finances”
In a statement released on Tuesday, March 10, 2026, Winners Alliance called the creditors’ allegations “fundamentally false.” The firm emphasized it was a minority shareholder and did not exercise operational control over Johnson’s actions. Winners Alliance claims they were the largest financial losers in the league’s collapse and that efforts to secure additional funding from investors like Eldridge Industries failed due to external factors.
Athletes to Receive 85%, Other Creditors Only 1.5%
The proposed restructuring plan from February 2026 has also sparked controversy. It suggests that athletes receive approximately 85% of their back pay, while other creditors would receive a mere 1.5%. High-profile stars among the creditors include Sydney McLaughlin-Levrone and Gabby Thomas, who were owed $350,000 and $250,000, respectively, as of December 2025.
Winners Alliance defends the plan, arguing that athletes are essential to the league’s future and must be prioritized if the project is ever to be revived. Meanwhile, the firm has threatened legal action against the creditors’ committee for spreading what it deems defamatory information. Both parties are scheduled to appear before a bankruptcy judge this Thursday, a hearing that will likely decide the fate of the lawsuit against Johnson.
Thursday Hearing Could Decide the Trial
The Grand Slam Track bankruptcy case is entering a critical phase. The allegations surrounding Michael Johnson’s $500,000 payout could potentially block the planned payments to athletes. Thursday’s hearing will determine if the court allows the multi-million dollar fraud lawsuit to move forward, a move that would likely exhaust the league’s remaining financial resources.
