Sydney McLaughlin-Levrone and other Olympic medalists are among those owed six-figure sums by Grand Slam Track, the racing league that filed for bankruptcy earlier this month.
Background on Grand Slam Track
Grand Slam Track, a racing league founded by Olympic gold medalist Michael Johnson, has been in the news for its recent Chapter 11 bankruptcy filing. The league has signed athletes who receive salaries and appearance fees to compete on its four-event circuit. In addition to these payments, athletes earned prize money at each race and from a season-long series.
Creditors List and Outstanding Payments
On Monday, the league resubmitted its bankruptcy forms, including a required list of its top 20 creditors. Sydney McLaughlin-Levrone, the four-time Olympic champion and world-record holder in the 400-meter hurdles, appears fifth on that list with an outstanding amount of $365,250. Other names on the list include Kenny Bednarek, Josh Kerr, Marileidy Paulino, and Alison Dos Santos. Dos Santos and Melissa Jefferson-Wooden are each owed $190,625. The remaining creditors on the list are owed amounts that fall between $211,000 and $250,000.
Olympic Medalists and Their Claims
The athletes named on the creditors list are all Olympic medalists. Sydney McLaughlin-Levrone is a four-time Olympic champion. Gabby Thomas, Melissa Jefferson-Wooden, and the other four medalists share the same status, underscoring the league’s high-profile roster. Their claims reflect the financial commitments the league made to attract world-class competitors.
Event Cancellation and Its Impact
Grand Slam Track’s season-long series was cut short when the league abruptly called off its final event, which had been scheduled for Los Angeles in June. The cancellation halted prize money distribution and disrupted the season’s conclusion. This abrupt end was part of the broader financial turmoil that led to the bankruptcy filing.
Revised Asset Estimates
The organization amended its estimated assets in the bankruptcy filing to a range between $1 million and $10 million, a significant increase from the less than $50,000 originally reported. This revision reflects a reassessment of the league’s financial position during the proceedings.
Debts to Creditors and Major Liabilities
Grand Slam Track stated that it owes between $10 million and $50 million to a group of 200 to 999 creditors. The largest single liability is $3.036 million, which is due to Momentum-CHP Partnership. This partnership was created specifically for the league’s television productions and represents a key financial obligation.
League’s Outlook
“With a rightsized financial profile, the League will have the ability to return for future seasons and pursue new initiatives,” GST said in a news release last week that announced the bankruptcy. The statement indicates the league’s intent to reorganize and potentially resume operations after addressing its debts.
Key Takeaways
- Grand Slam Track owes Olympic medalists over $190 k each as part of its Chapter 11 bankruptcy.
- The league’s assets were revised to $1 M-$10 M, up from <$50 k.
- A $3.036 M debt to Momentum-CHP Partnership is the largest creditor claim.
The bankruptcy filing marks a pivotal moment for Grand Slam Track, as it seeks to navigate its financial challenges while maintaining relationships with its high-profile athlete roster. The league’s future will depend on its ability to restructure its debts and restore confidence among its creditors and competitors.
