Grand Slam Track: Creditors Hold Out Hope for Michael Johnson's League Despite Only $7,300 Cash

Despite the bankruptcy filing, creditors express hope for the league's survival as tensions rise over unpaid bills and future spending.

Michael Johnson's ambitious Grand Slam Track (GST) league faced its creditors for the first time on Wednesday following its Chapter 11 bankruptcy filing last month.

The virtual hearing revealed the stark reality of the league's financial crisis, just $7,300 in cash against more than $30 million in outstanding debt.

While these figures might suggest the startup is on its last legs, statements from both GST and its unpaid creditors painted a more complex picture. Despite widespread frustration over the abrupt end to the inaugural season, a mutual interest in salvaging the league for a 2026 return appears to exist.

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Mark Fulton of Momentum, representing the unsecured creditors' committee, captured this sentiment in a statement.

Momentum, a partner of Carr-Hughes Productions, is the league's largest unsecured creditor, with a claim exceeding $3 million for television broadcast services.

"Speaking on behalf of all vendors, let me be absolutely clear: everybody wants Grand Slam Track to succeed," Fulton stated as quoted by Letsrun.com.

"However, that success cannot and should not be built on the financial harm of the 2025 vendors. The impact on businesses, athletes and individuals has been severe, and the strain placed on people’s mental wellbeing has been significant and ongoing."

Fulton's statement provided a rare look into the breakdown of the league's finances. He described how vendors were "shocked by the treatment they received" and what he termed "a disregard for the very people who delivered the product" in the lead-up to Christmas.

He noted that vendors had offered "meaningful concessions and reductions" on their outstanding bills, but these proposals "were not meaningfully engaged with."

Fulton added, "Since mid-October, nearly all communication has focused on preserving Grand Slam Track, while the vendors, who carried the operational and reputational risk, were largely ignored."

Despite the grievances, Fulton emphasised a desire for a constructive outcome. "We are not here to argue. We are here to resolve this properly," he concluded.

"That resolution must fairly address what is owed to vendors while allowing Grand Slam Track to move forward on a sustainable and credible footing."

Court filings and testimony during the hearing confirmed that GST currently has six employees, including founder Michael Johnson, who was not present at the meeting. The league's Chief Restructuring Officer, Nicholas Rubin, answered most of the questions under oath.

To fund its bankruptcy proceedings and minimal operations, GST is expected to receive nearly $1 million in financing from Winners Alliance. The league has a deadline of January 31 to present a formal restructuring plan.

The hearing highlighted the core dilemma for creditors, for them to recover any significant portion of their money, the league must survive.

A complete liquidation would likely leave them with nothing. However, they expressed serious concerns about how GST plans to use its limited funds during the bankruptcy process.

Fulton questioned Rubin about the current salaries of Michael Johnson and COO Steve Gera, a query that was deferred pending more detailed financial disclosures.

He also raised concerns about a proposed $50,000 in consulting fees and a particularly contentious budget item: $400,000 allocated for athlete contracts.

When asked if this money was intended to pay athletes for the 2025 season, Rubin clarified that the funds were meant "to secure the racers on a go-forward basis."

The response, which prioritised future contracts over past debts, was met with an audible chuckle from someone on the call, underscoring the deep-seated frustration among those left unpaid.

A recent bankruptcy hearing for Grand Slam Track (GST) has shed some light on the company's precarious financial situation, but many of the most pressing questions about its future remain unanswered.

The proceedings highlighted the deep frustration of creditors, including athletes and vendors, who are still awaiting payment while the league attempts to reorganise and survive.

Despite widespread public speculation that the league is defunct, the hearing underscored a critical reality: for those owed money, any significant financial recovery hinges on GST's ability to continue operating in some capacity.

The company is currently navigating Chapter 11 bankruptcy, a process that freezes past debts while prioritising the company's reorganisation efforts.