Front Office Sports is reporting that Grand Slam Track has narrowly avoided collapsing.
Margaret Fleming wrote:
Embattled running startup Grand Slam Track has narrowly avoided collapsing—for now—after receiving emergency financing from existing investors it used to make partial payments to athletes Friday, Front Office Sports has learned... Now, the league has the money to cover some of the shortfall. A handful of the startup’s existing investors have provided the league with up to eight figures of emergency financing, a source close to Grand Slam tells FOS... The funding is not enough to cover all of the league’s debts, which are about $11 million owed to athletes and roughly $8 million owed to vendors. But the league wired athletes half of what they are owed Friday and next plans to pay off some of its vendor debts. One athlete representative confirmed to FOS that the money had arrived early Friday morning.
I´m so happy for the athletes, especially for some of the less profiled ones as Agnes Ngetich, Welteji and Taye for whom the prize money probably was a VERY important part of their 2025 income.
Salvitore. You are overthinking this one. It's very easy for GST to file for bankruptcy and that's the end of the story.
There's no way any cash at all would have beeen paid yesterday if they wern't fully intent on keeping this thing going. Whether it all works out or not I can't say. But their intentions are pretty clear based on this payment.
Roger. Yes there is a way cash would be paid yesterday even without the intent to keep this going.
We don't know the wording of the contracts/agreements in place. The single biggest question that has emerged since the monetary struggles of GST were made public has been "is Michael Johnson personally liable/has he committed some type of fraud?". So any payments/money changing hands here could really be helping him here. We don't know if agents have just negotiated settlement numbers here to just end it all and this money is subsidizing that. That would make a lot of sense for both parties.
What do you mean "file for bankruptcy and that's the end of the story"? You must have missed the multiple press releases/article where there are athletes talking about filing lawsuits against GST/Michael Johnson. And simply filing for "bankruptcy" isn't that simple - because if it did come to any sort of litigation you would start looking at all the finances, where the money was spent, how much did Michael Johnson make etc and that could be far more damaging to him than even what's happening now.
I love that you think this is all black and white but that's just wishful thinking kemosabe. And put it this way, GST has received a certain amount of money here - but do you really think it's going to be around next season? Really?
Salvitore. You are overthinking this one. It's very easy for GST to file for bankruptcy and that's the end of the story.
There's no way any cash at all would have beeen paid yesterday if they wern't fully intent on keeping this thing going. Whether it all works out or not I can't say. But their intentions are pretty clear based on this payment.
Roger. Yes there is a way cash would be paid yesterday even without the intent to keep this going.
We don't know the wording of the contracts/agreements in place. The single biggest question that has emerged since the monetary struggles of GST were made public has been "is Michael Johnson personally liable/has he committed some type of fraud?". So any payments/money changing hands here could really be helping him here. We don't know if agents have just negotiated settlement numbers here to just end it all and this money is subsidizing that. That would make a lot of sense for both parties.
What do you mean "file for bankruptcy and that's the end of the story"? You must have missed the multiple press releases/article where there are athletes talking about filing lawsuits against GST/Michael Johnson. And simply filing for "bankruptcy" isn't that simple - because if it did come to any sort of litigation you would start looking at all the finances, where the money was spent, how much did Michael Johnson make etc and that could be far more damaging to him than even what's happening now.
I love that you think this is all black and white but that's just wishful thinking kemosabe. And put it this way, GST has received a certain amount of money here - but do you really think it's going to be around next season? Really?
I don't know one way or another for next year but my gut feeling is Johnson and GST are well protected legally if they shut up shop.
I'm reading the other posts about this being a settlement, but really we need to find out from the athletes if it's a part-payment or a settlement-payment. If it's a part payment then we can assume GST intends to continue.
As I've said already, I've no idea if they'll make to next year or not, but my feeling is they are going to try.
Brojos should try and contact some athletes to see if the payments were interim or final.
The key thing that stood out to me was this: “Financing has now been arranged to cover 50 per cent of what is owed to athletes. Due to the nature of financing, the funds will be subject to repayment in the future. Athletes have also been told that GST will be working on securing additional funding in the next 60 days.”
Doesn’t that sound like GST got a loan in order to pay the athletes 50% of what they’re owed?
I don't know one way or another for next year but my gut feeling is Johnson and GST are well protected legally if they shut up shop.
I'm reading the other posts about this being a settlement, but really we need to find out from the athletes if it's a part-payment or a settlement-payment. If it's a part payment then we can assume GST intends to continue.
As I've said already, I've no idea if they'll make to next year or not, but my feeling is they are going to try.
Brojos should try and contact some athletes to see if the payments were interim or final.
Fair enough. I think that finding out this information might ultimately be tough because I "suspect" the athletes/agents have been asked to keep all details confidential beyond the "half" payment (I actually know this because I've been told that's the case, I don't know anything else including if it's a settlement or a continuing payment situation).
I look at it this way, 2 months ago it seemed like a lot of these athletes were getting nothing. If you were Grant Fisher and you even got half of your 200k, well that's a hell of a lot more than you'll ever make on the DL - I wouldn't be overly distraught by that.
As to next year - I just don't understand how we get there. So this money (allegedly in the tens of millions) is just to cover this season and is only getting us half way with athlete prize payments. So in order to see a second season there needs to be more money to presumably pay off athletes from 2025 and then another influx of money to fund 2026? There is simply no way they could possibly have another season before at least this seasons financial obligations are met, right? Imagine starting GST 2026 and you still owe the 2025 athletes a combined X millions of dollars? Zero chance.
Who is fronting this money for 2026 and furthermore, which athletes are doing this again? Even if they get to 2026 there is no way the prize money is as big, and the timing of GST cratered a number of athletes seasons that I don't many are keen to go through again (an outdoor season April > September anyone? yeah no thanks). We aren't even getting to how stupid the format was seems to be the last of his worries right now.
This post was edited 58 seconds after it was posted.
Fair enough. I think that finding out this information might ultimately be tough because I "suspect" the athletes/agents have been asked to keep all details confidential beyond the "half" payment (I actually know this because I've been told that's the case, I don't know anything else including if it's a settlement or a continuing payment situation).
I look at it this way, 2 months ago it seemed like a lot of these athletes were getting nothing. If you were Grant Fisher and you even got half of your 200k, well that's a hell of a lot more than you'll ever make on the DL - I wouldn't be overly distraught by that.
As to next year - I just don't understand how we get there. So this money (allegedly in the tens of millions) is just to cover this season and is only getting us half way with athlete prize payments. So in order to see a second season there needs to be more money to presumably pay off athletes from 2025 and then another influx of money to fund 2026? There is simply no way they could possibly have another season before at least this seasons financial obligations are met, right? Imagine starting GST 2026 and you still owe the 2025 athletes a combined X millions of dollars? Zero chance.
Who is fronting this money for 2026 and furthermore, which athletes are doing this again? Even if they get to 2026 there is no way the prize money is as big, and the timing of GST cratered a number of athletes seasons that I don't many are keen to go through again (an outdoor season April > September anyone? yeah no thanks). We aren't even getting to how stupid the format was seems to be the last of his worries right now.
I agree with what you’re saying. There is zero indication this will happen in 2026. What venue is going to be stupid enough to even allow GST to use their facilities, without full upfront payment as they have seen venues get burned already. The track community is not THAT big that these venues aren’t doing their research, talking to other folks, and making their decisions based on past behavior by GST (non payment). What athletes would sign up for 2026? No pro athlete or their agent is going to willingly sign up for GST in 2026 knowing all of this crap has been going on and it’s now…. Check watch…. October? GST should’ve been paid out and done with S1 and they should be in the strategizing / using lessons learned phase to continually improve and have a better S2. But instead, we have HALF payments going through to athletes? And can anyone actually confirm this has been done? Can we confirm with top placers like MJW or Grant Fisher that they have been paid half? And even if …. EVEN IF…. Some miraculous recovery happens and venues are willing to sign up and so are athletes and they get a S2, you can’t be serious that they would keep Michael Johnson on as the face of this. I mean his reputation is guttered. So yeah, I don’t see any path forward. I will be shocked if athletes ever get more than half but I have yet to see proof that they have even received that much.
Fair enough. I think that finding out this information might ultimately be tough because I "suspect" the athletes/agents have been asked to keep all details confidential beyond the "half" payment (I actually know this because I've been told that's the case, I don't know anything else including if it's a settlement or a continuing payment situation).
I look at it this way, 2 months ago it seemed like a lot of these athletes were getting nothing. If you were Grant Fisher and you even got half of your 200k, well that's a hell of a lot more than you'll ever make on the DL - I wouldn't be overly distraught by that.
As to next year - I just don't understand how we get there. So this money (allegedly in the tens of millions) is just to cover this season and is only getting us half way with athlete prize payments. So in order to see a second season there needs to be more money to presumably pay off athletes from 2025 and then another influx of money to fund 2026? There is simply no way they could possibly have another season before at least this seasons financial obligations are met, right? Imagine starting GST 2026 and you still owe the 2025 athletes a combined X millions of dollars? Zero chance.
Who is fronting this money for 2026 and furthermore, which athletes are doing this again? Even if they get to 2026 there is no way the prize money is as big, and the timing of GST cratered a number of athletes seasons that I don't many are keen to go through again (an outdoor season April > September anyone? yeah no thanks). We aren't even getting to how stupid the format was seems to be the last of his worries right now.
Is there anyone in the White House who’s a track fan? Just get a “grant” from the govt as the way to keep it up. Only half joking - just look at how the WH lawn became a Tesla showroom for a bit
Fair enough. I think that finding out this information might ultimately be tough because I "suspect" the athletes/agents have been asked to keep all details confidential beyond the "half" payment (I actually know this because I've been told that's the case, I don't know anything else including if it's a settlement or a continuing payment situation).
I look at it this way, 2 months ago it seemed like a lot of these athletes were getting nothing. If you were Grant Fisher and you even got half of your 200k, well that's a hell of a lot more than you'll ever make on the DL - I wouldn't be overly distraught by that.
As to next year - I just don't understand how we get there. So this money (allegedly in the tens of millions) is just to cover this season and is only getting us half way with athlete prize payments. So in order to see a second season there needs to be more money to presumably pay off athletes from 2025 and then another influx of money to fund 2026? There is simply no way they could possibly have another season before at least this seasons financial obligations are met, right? Imagine starting GST 2026 and you still owe the 2025 athletes a combined X millions of dollars? Zero chance.
Who is fronting this money for 2026 and furthermore, which athletes are doing this again? Even if they get to 2026 there is no way the prize money is as big, and the timing of GST cratered a number of athletes seasons that I don't many are keen to go through again (an outdoor season April > September anyone? yeah no thanks). We aren't even getting to how stupid the format was seems to be the last of his worries right now.
Is there anyone in the White House who’s a track fan? Just get a “grant” from the govt as the way to keep it up. Only half joking - just look at how the WH lawn became a Tesla showroom for a bit
I am sure there are, Lots Of Track and Field Fans in the White House I know President Obama was a Fan, When Bernard Lagat came up to President obama and said I am Bernard Lagat, President Obama said yes I Know.
This post was edited 31 seconds after it was posted.
Salvitore. You are overthinking this one. It's very easy for GST to file for bankruptcy and that's the end of the story.
There's no way any cash at all would have beeen paid yesterday if they wern't fully intent on keeping this thing going. Whether it all works out or not I can't say. But their intentions are pretty clear based on this payment.
I was at a funeral yesterday so getting caught up. The more I think about it I don’t see why anyone would pay half the money to repair their reputation. If you’re worried about your reputation you pay it all.
I also struggle thinking though that the current investors felt they’d be wiped out immediately if money didn’t come in so they fronted half the money (as a loan according to wording in Athletic) until the money from the new investors hit the books.
I don’t have a very good picture in my mind but fall back on money coming in is not only good for the athletes but is at least a step to there possibly being a 2026 season.
50 cents on the dollar is better than NO cents on the dollar. Also, let the whole GST be a lesson to future promoters - GET THE MONEY FIRST in LEGALESE FORM before doing any promotion to athletes & fans.
The key thing that stood out to me was this: “Financing has now been arranged to cover 50 per cent of what is owed to athletes. Due to the nature of financing, the funds will be subject to repayment in the future. Athletes have also been told that GST will be working on securing additional funding in the next 60 days.”
Doesn’t that sound like GST got a loan in order to pay the athletes 50% of what they’re owed?
my bold; how does this work? this means there must be a business plan to generate revenue to repay the funds. i dont beleive it. how can a failed business put together a credible business plan from a position of extreme debt?
my take; this new financing is 'arranged' with further conditions to be met and schedules to do. a few top athletes might start getting a little bit of money, but only if it frees up more cash which, if the conditions arent met, which they wont be, no more money is released. its like a reverese ponsi scheme. cans kicked down the road.
Salvitore. You are overthinking this one. It's very easy for GST to file for bankruptcy and that's the end of the story.
There's no way any cash at all would have beeen paid yesterday if they wern't fully intent on keeping this thing going. Whether it all works out or not I can't say. But their intentions are pretty clear based on this payment.
I was at a funeral yesterday so getting caught up. The more I think about it I don’t see why anyone would pay half the money to repair their reputation. If you’re worried about your reputation you pay it all.
I also struggle thinking though that the current investors felt they’d be wiped out immediately if money didn’t come in so they fronted half the money (as a loan according to wording in Athletic) until the money from the new investors hit the books.
I don’t have a very good picture in my mind but fall back on money coming in is not only good for the athletes but is at least a step to there possibly being a 2026 season.
GST track was absolutely terrible. Aside from Wanyonyi winning that one 1500, it was so stupid. The forced doubling is r*t*rd*d. Now that we know they can’t afford to pay athletes more, the entire thing falls apart. Athletes arent going to show up for this gimmick if they arent making more money than DL. Hoping they just go bankrupt and we never hear about this again.
I don’t have a very good picture in my mind but fall back on money coming in is not only good for the athletes but is at least a step to there possibly being a 2026 season.
No athlete is going to want to sign with Grand Slam next year after this fiasco. No agent will want their athletes to sign on UNLESS Grand Slam overhauls their payment structure and offers legal guarantees that the payouts are there. Anything short of that, there is zero percent change of Grand Slam happening in 2026.
I don’t have a very good picture in my mind but fall back on money coming in is not only good for the athletes but is at least a step to there possibly being a 2026 season.
No athlete is going to want to sign with Grand Slam next year after this fiasco. No agent will want their athletes to sign on UNLESS Grand Slam overhauls their payment structure and offers legal guarantees that the payouts are there. Anything short of that, there is zero percent change of Grand Slam happening in 2026.
You'd be surprised how quickly the athletes will change their mind once they're paid in full, particularly with the high levels of payment GST had to offer.
