Grand Slam Track: Creditors Challenge Bankruptcy Plan as They Accuse Lead Investor of Mismanagement

A committee representing Grand Slam Track's (GST) unsecured creditors has formally objected to the league's proposed bankruptcy plan.

In a recent court filing, the group alleges that lead investor Winners Alliance, chaired by billionaire Bill Ackman, "orchestrated" the league's operations from its inception and deliberately ignored its descent into financial ruin.

The objection claims that Winners Alliance prioritised its own financial interests over those of the athletes, vendors, and other creditors who are now owed millions of dollars. The collapse of GST, which had promised to revolutionize track and field, has left a significant financial fallout, raising serious questions about the role of private equity in professional sports.

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The failure of Grand Slam Track has left over 150 athletes with substantial unpaid earnings. Among the highest-profile cases is Olympic champion Sydney McLaughlin-Levrone, who is owed $268,750. Other prominent athletes with large outstanding payments include Kenny Bednarek ($195,000) and Gabby Thomas ($185,625).

The creditors' filing argues that the current bankruptcy plan unfairly favors athletes over other entities, such as vendors, hotels, and public institutions that supported GST events and are also facing significant losses.

The court documents detail a series of accusations against Winners Alliance, a sports licensing and commercial firm. The creditors allege that while GST publicly claimed to have "secured" over $30 million in funding, Winners Alliance only held an "option — but not an obligation" to provide an additional $19 million.

Furthermore, the filing contends that Winners Alliance, which held two seats on the board and effectively acted as the league's chief financial officer, either "watched or turned a blind eye" as GST was "run into the ground." The committee accuses the investment group of controlling every aspect of the league, even before its official incorporation, under the leadership of four-time Olympic gold medalist Michael Johnson, who served as commissioner.

The committee of creditors has until April 9 to review and cast their votes on the proposed bankruptcy plan. Should the plan be rejected, the group has stated its intention to pursue legal action against both Winners Alliance and the management of Grand Slam Track.

The controversy surrounding GST's demise underscores the potential risks when private investment groups exert significant control over the financial and operational governance of sports leagues. The creditors' objections highlight a growing demand for greater transparency and accountability in the management of such ventures to protect all stakeholders involved.