The Michael Johnson lawsuit at the center of Grand Slam Track’s bankruptcy is a creditor action accusing the four-time Olympic gold medalist of taking a $500,000 “secret” insider payment from the league in June 2025, days before it canceled its Los Angeles finale and while athletes and vendors were going unpaid. The claim was filed on March 9, 2026 by the Official Committee of Unsecured Creditors in the U.S. Bankruptcy Court for the District of Delaware, and Johnson has since agreed to return the money as part of a revised Chapter 11 plan.
What the Creditors Are Accusing Johnson Of
The disputed transaction is a $500,000 payment Grand Slam Track made to Johnson on June 4, 2025. That was eight days before the league canceled its season finale in Los Angeles, and roughly a week after Johnson had personally put $2.25 million into the business on May 23, 2025.1The New York Times / The Athletic. Michael Johnson Grand Slam Track Vendor Fraud
In a motion seeking permission to sue Johnson, other officers and board members, and lead investor Winners Alliance, the committee called the payment “secret” and said there were “no Board minutes which reflect authorization of this insider avoidable transfer.”2Stretto. Motion for Standing to Prosecute Claims, Case No. 25-12188 The creditors alleged Johnson “secretly preferred himself over the athletes and other, non-insider creditors” while publicly claiming to champion athletes’ interests.3The Guardian. Michael Johnson Accused in Grand Slam Track US Court Filing
The motion raised several theories under the Bankruptcy Code. Because the transfer occurred within a year of the filing and went to an insider, the committee sought to avoid it as a preference under Section 547. It also pleaded actual and constructive fraudulent transfer under Section 548, and accused Johnson and other officers of breaching their fiduciary duties, with Winners Alliance alleged to have aided those breaches.2Stretto. Motion for Standing to Prosecute Claims, Case No. 25-12188
The committee also asked the court to treat Winners Alliance’s funding as equity rather than debt and to subordinate its claims, arguing the firm had used the league as a “mere instrumentality.” The committee said it had to bring the claims itself because the people who would normally do so on the company’s behalf were the same people being accused, calling the situation “the fox guarding the henhouse.”2Stretto. Motion for Standing to Prosecute Claims, Case No. 25-12188
How Johnson Answered the Allegations
Johnson has denied wrongdoing. His position is that the $500,000 was a partial reimbursement for money he had personally advanced to keep the league operating, not a hidden payout.4Yahoo Sports. Michael Johnson Set Bold Move
Grand Slam Track spokesperson Alex Tourk called the creditors’ allegations “unfounded and false” and said Johnson had “advanced millions of dollars for GST’s operating expenses, including athlete travel, accommodation and costs.” In a separate statement, the league called the filing “ill-conceived” and an attempt to “derail” its bankruptcy plan, and said the Chapter 11 process was “completely transparent.”3The Guardian. Michael Johnson Accused in Grand Slam Track US Court Filing5The New York Times / The Athletic. Michael Johnson Grand Slam Track Vendor Fraud
Winners Alliance also pushed back, saying it was a minority shareholder with minority board representation and that GST management ran the business. The firm called the committee’s claims “fundamentally false” and an “extortion” tactic.6The New York Times / The Athletic. Grand Slam Track Bankruptcy Plan Court
Why the Payment Drew Scrutiny
The reason a $500,000 transfer became a flashpoint is that there was almost nothing left in the company when it was made. Grand Slam Track filed for Chapter 11 on December 11, 2025 (Case No. 25-12188) reporting $40.68 million in debts against $831,385 in assets.7Stretto. Grand Slam Track Bankruptcy Case The league owed roughly $7 million to athletes, $12.9 million to vendors and other unsecured creditors, and more than $17 million to Winners Alliance itself.8Front Office Sports. Grand Slam Track Revenue Debt Filings
Athletes had received only about half of what they were owed by October 2025.9Sportico. Grand Slam Track Michael Johnson Chapter 11 Bankruptcy Sydney McLaughlin-Levrone was owed $356,250, Gabby Thomas $249,375, Kenny Bednarek $225,000, and Josh Kerr $218,750.10LetsRun. Grand Slam Track Creditors Revealed Vendor Momentum-CHP Partnership was owed more than $3 million for broadcast production. Kerr told reporters, “I’m owed a lot of money, so in any business anyone’s going to be frustrated.”11The Independent. Michael Johnson Grand Slam Track Payment
Johnson had publicly apologized in August 2025 for missed athlete payments, saying the league was “struggling with our ability to compensate” athletes and that a 2026 season “will not happen until these obligations are met.”12ESPN. Johnson Apologizes Missing Payments Grand Slam Track Athletes The June payment predated that apology by two months.
The Settlement Returning the $500,000
By mid-2026, the league and the creditors’ committee reached what was described as a consensual resolution. Under the revised plan, Johnson and Winners Alliance agreed to return the contested $500,000 to the bankruptcy estate, where it was added to the pool for unsecured creditors.13Front Office Sports. Michael Johnson Grand Slam Track Repayment
The revised terms cut athlete recoveries from roughly 85 percent to about 70 percent of the $7 million owed (approximately $4.9 million) and lifted vendor recoveries to about 14 to 15 percent of their claims (roughly $1.8 million), up from a rate of about 1.5 percent under the original plan.14Front Office Sports. Grand Slam Track Bankruptcy Plan13Front Office Sports. Michael Johnson Grand Slam Track Repayment
Creditors backed the deal decisively. Athletes voted 123 to 0 in favor, and unsecured creditors approved it 23 to 1. A motion to approve the plan went to the court in April 2026, with a final confirmation hearing scheduled for July 2026.15The Sports Examiner. Grand Slam Track Bankruptcy Plan Passes
What’s Still Open
The settlement resolves the creditors’ civil claims against Johnson inside the bankruptcy; the file does not report any separate criminal investigation or regulatory action against him personally. Whether the league itself has a future is a different question. The reorganization plan envisions a new ownership group controlled at least in part by Johnson investing more than $6 million, with Winners Alliance expected to provide exit financing, but the plan sets out no schedule for a second season.16LetsRun. Pay the Athletes 85 Save the League Inside Grand Slam Tracks Bankruptcy Plan
Any restart would also require licensing from World Athletics. President Sebastian Coe said in December 2025 there was “no guarantee” the league would be allowed back even after debts were settled, and that any new version would need a “sustainable, solid financial model.”17The Guardian. No Guarantee Grand Slam Track Will Be Allowed Back Warns World Athletics In February 2026, World Athletics said it would be “unconscionable” for the league to restart before settling all outstanding obligations.18The New York Times / The Athletic. Grand Slam Track 2026 Bankruptcy