Four-time Olympic champion Michael Johnson has agreed to refund US$500,000 (approximately AUD$726,000) amidst controversies regarding his financial dealings prior to the collapse of his Grand Slam Track (GST) league. As reports surfaced, it was revealed that Johnson had paid himself this amount just days before the league’s planned finale was cancelled, leading to the bankruptcy filing in the United States.
Five Australian athletes participated in GST’s first season, including notable names such as Jessica Hull and Abbey Caldwell. Despite their contributions, athletes are still owed significant sums, having received only partial payments for their services. GST had promised substantial salary and prize money, which went unfulfilled when the league abruptly ceased operations.
Legal documents from an American court specified that merely eight days before GST’s failure, Johnson made the “secret” payment. Earlier, he had invested over US$2 million into GST following a withdrawal of support from a planned US$40 million investment by Eldridge Industries.
GST representatives have described the accusations against Johnson as “unfounded and false.” They conveyed that while Johnson maintains that the payment was a reimbursement rather than a salary, he has agreed to contribute the funds to aid in distributing benefits to creditors during the league’s reorganisation.
As GST aims to emerge from bankruptcy, plans are reportedly in motion that would allow athletes to receive about 70% of their owed prize money, while unsecured creditors might receive a mere 15%. Jessica Hull, who concluded all four GST events, has been identified as owed more than her teammates, with a guaranteed prize of AUD$142,000 based on her performances.
Hull’s father expressed a belief that Johnson did not intend to defraud anyone and acknowledged the challenges of managing financially in a new venture. He noted that while the intention might have been to elevate the sport’s profile, the execution fell short, leading to frustration for those involved.
The overall sentiment reflects disappointment and frustration from the athletes, particularly Hull, who hoped for compensation after significant promotional efforts for the league. The complexities of starting a new business venture are highlighted, alongside the risks that athletes took in participating under such uncertain conditions. Ultimately, the hope remains for athletes to receive the payments they are due, but with the current financial situation, that now seems uncertain.