Olympics legend Johnson’s Grand Slam Track is facing collapse as World Athletics rejects 50% settlement

World Athletics has told Grand Slam Track it must first settle its debts with athletes after rejecting an offer from the Michael Johnson-fronted venture to pay 50 per cent of what it owes the governing body to avoid bankruptcy.

The move could lead to the financial collapse of an organisation that Johnson promised would revolutionise the sport by offering greater financial rewards to athletics’ biggest stars. The Times understands that World Athletics has made it clear that the athletes who were persuaded to compete in Kingston, Miami, and Philadelphia before the cancellation of the fourth event in Los Angeles, scheduled for late June, must be the priority.

Athletes, including Great Britain’s 1,500m star Josh Kerr, are still owed 50 per cent of what they earned in prize money and appearance fees, with a number of them waiting on potentially life-changing six-figure sums.

Last month, letters from a law firm acting for Grand Slam Track (GST) were sent to multiple vendors who helped Johnson, the 58-year-old four-times Olympic champion, and his colleagues launch the new track league.

Sent by insolvency law firm Levene, Neale, Bender, Yoo & Golubchik LLP, the recipients were offered only 50 per cent in the dollar for the millions of their total invoices, with a warning that rejection of the deal would lead to GST filing for bankruptcy protection.

The letters also detailed how an outside party had expressed an interest in financing or acquiring GST on a debt-free basis, stressing that such an outcome would require all the vendors to agree to the 50 per cent offer. They have been issued a deadline of December 5.

However, the World Athletics, which sources have suggested is owed about £30,000 for licensing rights, has already responded with a rejection of the deal.

For Johnson, who is yet to comment on the latest developments, this is now a desperate situation. He has already admitted he was “struggling” to pay the athletes, blaming the withdrawal of a major financial backer after the opening meeting in Kingston, Jamaica, proved unsuccessful. He did not perform his usual punditry duties for the BBC at the World Athletics Championships in Tokyo in September.

At the start of last month, athletes were notified that they were being paid “50 per cent of the total appearance and prize money earned at this year’s Slams”. However, they have heard nothing since.