Michael Johnson's Grand Slam Track project has slipped into serious financial trouble as World Athletics rejects its debt-reduction proposal.
Michael Johnson's ambitious Grand Slam Track venture is facing financial ruin after World Athletics rejected a proposal to settle its debts for half the amount owed.
According to the Times, the governing body has insisted that the track league must first pay the six-figure sums owed to its athletes.
The decision could spell the end for an organisation that Michael Johnson, a four-time Olympic champion, had promised would revolutionise athletics with substantial prize money for its top stars.
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World Athletics has reportedly made it clear that its priority is ensuring athletes who competed in the league's events in Kingston, Miami, and Philadelphia are paid in full. A fourth event, planned for Los Angeles in late June, was cancelled.
Several athletes, including British 1500m star Josh Kerr, Emmanuel Wanyonyi and Melissa Jefferson-Wooden, are still waiting for 50 per cent of their prize money and appearance fees. For some, these outstanding payments represent life-changing six-figure sums.
Last month, a law firm representing Grand Slam Track (GST) contacted numerous vendors involved in the league's launch.
The letter, from insolvency specialists Levene, Neale, Bender, Yoo & Golubchik LLP, offered creditors 50 cents on the dollar for what they were owed, which totals millions.
The firm warned that if the offer was not accepted, GST would be forced to file for bankruptcy protection. The letter also mentioned that a third party was interested in acquiring or financing GST, but only if it was debt-free, a condition that required all creditors to accept the partial payment deal by a December 5 deadline.
However, World Athletics, which is reportedly owed around £30,000 for licensing rights, has already turned down the offer, placing the venture in a precarious position.
Michael Johnson, who has yet to make a public statement on these recent events, previously admitted he was 'struggling' to pay the athletes.
He attributed the financial difficulties to a major backer pulling out after the inaugural meet in Kingston, Jamaica, failed to meet expectations.
Michael Johnson was also notably absent from his usual punditry role for the BBC during the World Athletics Championships in Tokyo this past September.
Athletes were informed early last month that they would receive "50 per cent of the total appearance and prize money earned at this year's Slams," but have reportedly received no further communication since.