Michael Johnson has been accused of paying himself $500,000 (approximately £370,000) just days before his Grand Slam Track (GST) project collapsed into bankruptcy. The allegations stem from a legal filing submitted to the US bankruptcy court in Delaware, which claims that Johnson "secretly" transferred the funds to himself while GST owed millions of dollars to athletes and other creditors.
Creditors Allege Deception and Prioritised Payments
In the court documents, creditors have further accused Johnson of "feigning to the public" his concern for athletes' interests. They assert that he prioritised payments to high-profile athletes in an effort to limit reputational damage, rather than addressing the broader financial obligations of the project.
Funding Claims Under Scrutiny
The legal filing also challenges GST's financial transparency, alleging that the organisation falsely claimed to have secured $30 million in funding. According to the creditors, only $13 million had actually been raised, raising questions about the project's financial management and viability.
GST Denies Allegations
In response to the accusations, GST has issued a denial, stating that the $500,000 payment to Johnson was a reimbursement for millions of dollars he had personally advanced to cover the project's operating expenses. The organisation maintains that this was a legitimate transaction, not a secretive payout as alleged by creditors.
Grand Slam Track filed for bankruptcy in December, marking a significant downfall for the initiative that aimed to support athletes. The collapse has left many creditors, including athletes, facing substantial financial losses, with the legal proceedings ongoing to resolve the debts and allegations of misconduct.
