Since Michael Johnson launched the Grand Slam Track league, it has faced one challenge after another. The league struggled from the start with low attendance. Over time, worries about its future grew, eventually leading to the cancellation of the fourth event in Los Angeles last June. By early December, the league filed for Chapter 11 bankruptcy, citing over $30 million in debt. But the full extent of the crisis was only revealed in recent filings.

According to the latest reports, Grand Slam Track now owes about $31.4 million. That includes $11.4 million to its main backer, Winners Alliance, $7 million to athletes, and $13 million to vendors. The league also has only around $143,000 in cash, most of which is already pledged as collateral to Winners Alliance.

Earlier this year, the league used emergency funding to compensate the athletes for approximately half of what they were owed after an investor dropped out unexpectedly, putting them in a major financial bind. But now, the league is seeking to stay afloat by requesting a $2.9 million debtor-in-possession (DIP) loan from Winners Alliance. But this step has its pros and cons.

The DIP loans come with a high 14.5% interest rate and special protections for the lender, according to the filing. Part of the league’s existing debt would also be “rolled up” into this new loan, giving Winners Alliance priority in repayment.

For now, the league has set a 13-week budget through at least March 2026. It will spend $1.5 million on operating expenses, such as payroll, marketing, PR, and legal and financial consulting, and an additional $1.5 million on professional and restructuring-related expenses. At the end of that period, the league says it will have just under $13,000 left after using its cash and the DIP loan, an amount that could enable it to keep the lights on.

Vendors had also threatened involuntary bankruptcy, which added to the pressure and forced the league to file for bankruptcy. Efforts to attract new investors were largely stymied by concerns about the league’s infancy, absence of operating results, and uncertainty about media and sponsorship revenues. With the financial doors about to be closed, the focus is on who is left to be paid.

Olympic medalists split on Grand Slam Track’s ongoing struggles

Several Olympic medalists, including Sydney McLaughlin-Levrone, Gabby Thomas, and Melissa Jefferson-Wooden, continue to be owed six-figure amounts by Grand Slam Track, the racing league that went bankrupt. Who else is waiting to be paid?

Sydney McLaughlin-Levrone is in fifth place, owed $356,250, and Gabby Thomas is owed $249,375. But the list didn’t end there. Josh Kerr, Kenny Bednarek, Marileidy Paulino, Alison Dos Santos, and Jefferson-Wooden are owed between $190,625 and $250,000.

Top Stories

NFL Suspends Chargers’ Denzel Perryman for Two Games Over Cowboys Incident

Clark Hunt Admits Being Pressured to Leave Arrowhead After Chiefs Offered $2.4B Proposal

Steelers Confirm $45M Punishment for DK Metcalf After NFL Suspended WR for 2-Games

Sean McDermott Confirms if Bills Will Sign a QB Amid Josh Allen’s Injury Concerns

Lee Trevino, 86, Leaves Golf World Hanging on Every Word at PNC: ‘I’ve Been Digging Worms’

Trent Williams Announces Retirement Plans After 49ers Clinch Playoff With Win vs Colts

Just recently, however, Sydney McLaughlin-Levrone praised the league for its efforts, saying, “This year, I know Grand Slam Track tried to pursue something a bit more professional, which I think the model of it really gave fans something exciting to look forward to. Obviously, there were issues on the back end there with the money side of things.”

Others, though, are decidedly less enthused by the whole situation. Gabby Thomas has shared her frustrations with the league that still shows “business as usual” as wages go unpaid. On TikTok, when the league promoted GST by featuring Thomas, she responded to the post with a simple plea: “So dope!!! pls pay me 😭”

Amid everything, the league is still attempting to move forward, albeit with a whole host of legal issues to navigate.