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≡ GRAND SLAM TRACK ≡
Prior to the Grand Slam Track hearing at the U.S. Bankruptcy Court in Delaware on 12 March, the Official Committee of Unsecured Creditors filed a motion to be able to file a complaint against the league and its primary funder, Winners Alliance, and seek millions of dollars in damages specifically against Winners, an arm of the Professional Tennis Players Association.
That got the attention of Grand Slam Track and Winners, and a Monday afternoon filing disclosed:
“Subsequent to the hearing, the Debtor [Grand Slam Track], the Committee, and Winners Alliance engaged in intensive settlement discussions and reached an agreement regarding the modified terms of the Plan, which the Committee now supports.”
This means that the amended reorganization plan now submitted is expected to be approved, meaning:
● Athletes, owed about $7.0 million, will receive $4.9 million or about 70% of the amount due, down from 85% in the prior filing.
Grand Slam Track did make payments of as much as 50% of amounts due to athletes previously; for those performers, the added amount from the plan means they will receive as much as 85% of the total amounts they were owed.
● General Unsecured Creditors, owed about $12.9 million, will receive an estimated 14-16% of their claims, up from just 1.5% before, from a fund of $1,264,550 plus a return of $500,000 paid to founder Michael Johnson as a pay-down of a personal loan which he made to Grand Slam Track in May 2025.
That additional money for the General Unsecured Creditors is coming from the amount owed to athletes, and the return of the payment to Johnson, which had been objected to as preferential treatment. Moreover, according to the new plan, the list of claimants “shall not include any Claims of Winners Alliance, the Debtor’s former or current officers, directors, or Insiders,” impacting claims by Johnson and Grand Slam Track President Stephen Gera.
A letter from the Official Committee of Unsecured Creditors to its members explained:
“The Committee carefully considered the potential alternative of attempting to obtain standing from the Bankruptcy Court to pursue identified litigation claims and causes of action against third parties.
“After carefully considering this potential alternative and its strengths and weakness, the Committee concluded that the recoveries offered to all unsecured creditors under the Plan are superior to any likely alternative, including, without limitation, the pursuit of potential litigation claims against third parties.”
With this in hand, the submission to the Bankruptcy Court was approved by Judge Karen B. Owens and the plan confirmation ballots are being circulated for approval. Once returned, by 9 April, the plan will be approved and the distributions will begin.
What happens to Grand Slam Track?
Winners Alliance, despite having thrown more than $18 million into the project, is ready to do more. The filing explains the go-forward plan:
“The Reorganized Debtor’s long-term go-forward business plan involves raising sufficient funds to host at least one event in 2027.
“To the extent the Reorganized Debtor is unable to raise sufficient funds to host at least one event in 2027 and to implement its go-forward longer term business plan successfully, the Reorganized Debtor will wind down its business affairs and discontinue operations.
“The Reorganized Debtor’s long-term viability will not impact recoveries to Creditors under this Plan, as the New Value Contribution will be made available for Distributions in accordance with this Plan irrespective of whether the Reorganized Debtor is ultimately able to raise sufficient funds to implement a long-term business plan (in addition to the funds the Reorganized Debtor will receive from Winners Alliance to conduct its fundraising process through December 31, 2026).”
This promising but ultimately unhappy chapter in track & field history now appears to be winding up, although it remains to be seen if there are others who want to underwrite another version of Grand Slam Track.
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