What's happened
Grand Slam Track, a sports league founded by Michael Johnson, filed for Chapter 11 bankruptcy in Delaware. Once boasting a $30 million bankroll and top athletes like Sydney McLaughlin-Levrone, the league now reports liabilities between $10 million and $50 million, with less than $50,000 cash on hand. The organization aims to reorganize and return in the future.
What's behind the headline?
The bankruptcy of Grand Slam Track highlights the risks of overambition in sports entrepreneurship. The league's failure to sustain its financial model, despite signing high-profile athletes, underscores the importance of realistic planning and cash flow management. The reorganization plan suggests a potential comeback, but the league's ability to rebuild trust with athletes and creditors remains uncertain. This case exemplifies how even well-funded ventures can falter without solid financial foundations. The broader sports industry should heed these lessons, especially when investing in innovative formats that require long-term stability. The story also raises questions about athlete protections and the sustainability of new sports leagues that rely heavily on media rights and sponsorships.
What the papers say
AP News reports detail the league's financial collapse, citing liabilities of up to $50 million and assets between $1 million and $10 million. The Independent emphasizes the league's dramatic fall from a $30 million bankroll to less than $50,000 cash on hand, highlighting the financial mismanagement and the challenges of maintaining a high-profile sports circuit. Both sources note the league's efforts to reorganize and its ambitions for future seasons, despite the current financial turmoil. The contrasting perspectives underscore the volatility of sports startups and the importance of prudent financial planning.
How we got here
Founded by Olympic champion Michael Johnson, Grand Slam Track aimed to revolutionize track and field by signing top athletes and creating a year-round circuit. Despite initial ambitions and signing major stars, the league faced financial difficulties, including unpaid athlete salaries and canceled events, culminating in its bankruptcy filing. The league's assets and liabilities have been significantly reassessed, reflecting a sharp decline from its original $30 million budget.
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Grand Slam Track was announced in 2024 by American former Olympic champion sprinter Michael Johnson. The first season is due to run from April - September 2025. After being initially announced in February 2024, the name of the league and other details...