Michael Johnson is to return a $500,000 (£374,000) payment he was alleged to have received “secretly” in the days before Grand Slam Track (GST) collapsed, in a new proposed deal between the league and its creditors.
A legal filing made at a US court alleged the former Olympic champion took out the $500k eight days before GST filed for bankruptcy, and while athletes were still owed millions, a claim GST said was “unfounded and false”.
But a GST spokesperson has now confirmed: “While Mr Johnson has been clear that the $500k was a reimbursement and not a payment, to avoid disruption and continue moving forward he and Winners Alliance have agreed to fund the $500k to the plan so that all creditors can benefit and receive a greater distribution in connection with the company's reorganisation and efforts to resurrect the league.”
As reported by the BBC, a spokesperson for Johnson also said: “Michael has asserted defences to the claim, including that this was a partial reimbursement of over $2m (£1.5m) of expenses advances by Michael for the benefit of the athletes.”
The inaugural season of GST lasted just three events – in Kingston, Miami and Philadelphia – before the fourth meet in Los Angeles was cancelled when the league ran out of money. A key sponsor, Eldridge Industries, pulled out its major funding and GST filed for bankruptcy in December.
It left GST owing several major athletes – including Britain’s Josh Kerr, significant sums – mainly in prize money and appearance fees. And Winners Alliance, GST’s primary funder, is reportedly owed more than $15m.
Speaking at the World Indoor Athletics Championships earlier this month, Kerr said: “Of course I’m frustrated. I’m owed a lot of money, so in any business anyone’s going to be frustrated. I don’t particularly know right now where to push those frustrations and where they should sit.
“I’ve had conversations with Michael, I’ve had information given to me by my agents on this stuff. I don’t think these are bad people. I think this is a horrible situation.”
Meanwhile, Johnson will not work on BBC Sport’s athletics coverage this year. His spokesperson said in a statement: “Michael wishes to clarify that it was his decision not to continue with the BBC after the Paris 2024 Games. With his contract up for renewal after the Olympics, and Grand Slam Track launching soon after, he chose to focus fully on the project.
“The BBC understood his decision, and he remains grateful for their support and his longstanding relationship with the broadcaster.”
