Gabby Thomas, Emmanuel Wanyonyi, and Co Shortchanged in New Grand Slam Track Bankruptcy Deal

A deal has been reached between the financially troubled Grand Slam Track league and a group of its vendors, who had threatened legal action to recover outstanding debts.

According to a court filing on Monday, the agreement includes a provision for league founder and Olympic legend Michael Johnson to repay a $500,000 payment he received from the organisation.

The creditors' committee had labelled this payment as fraudulent, a claim that Johnson "disputes," as stated in the new filing.

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The agreement, which still requires final approval from a judge and other creditor groups, including the athletes, marks a significant step in the league's bankruptcy proceedings.

According to Front Office Sports, under the revised plan, Grand Slam Track will amend its initial bankruptcy proposal. Originally, the league intended to pay athletes, including Gabby Thomas, Sydney McLaughlin-Levrone, Josh Kerr and Co, 85% of the $7 million they are owed, while most vendors would have received a mere 1.5% of their debts.

Following what was described as a "consensual resolution," the new terms will see athletes recover approximately 70% of their dues, and general vendors will receive a more substantial 14% to 15%.

Under the new proposal, the approximately $7 million owed to athletes will be settled with a payment of roughly $4.9 million. This is about $1.1 million less than the league's original offer.

The most significant shift benefits the vendors, who were collectively owed nearly $13 million but were initially set to share only $200,000. They will now divide approximately $1.8 million, a sum that includes the $500,000 returned by Michael Johnson.

This development follows a March 12 court hearing where the judge indicated she had approved similar plans in the past, countering the creditors' argument that the original proposal was "unconfirmable."

On the same day, the league presented letters of support from athletes Melissa Jefferson-Wooden, Kenny Bednarek, and Freddie Crittenden III, who all endorsed the initial plan and expressed willingness to compete for the league in the future.

Grand Slam Track filed for bankruptcy in December after its inaugural three-event series last spring left it unable to pay athletes and vendors.

Court documents revealed the league proceeded with events in Kingston, Miami, and Philadelphia despite lacking the funds to cover prize money and operational costs. This resulted in over $40 million in debt against less than $2 million in revenue for 2025.

The league has been financially supported by Winners Alliance, the commercial arm of the Professional Tennis Players Association, chaired by hedge fund billionaire Bill Ackman. Winners Alliance has continued its backing throughout the bankruptcy process.

Tensions had escalated as the creditors' committee, comprising a PR firm, a production company, and a graphics company, pushed for a larger settlement.

The committee had previously accused the league of "shocking levels of incompetence" and sought permission to file a $25 million lawsuit against Grand Slam and Winners Alliance. They alleged Johnson transferred the $500,000 to himself "without proper Board approval or justification" around the time the league cancelled its Los Angeles event due to a lack of funds.

Grand Slam has dismissed the claim regarding Michael Johnson's payment as "unfounded and false," while Winners Alliance described the creditors' position as one that "defies common sense." A court hearing to review the proposed settlement is scheduled for next month.