A group of creditors in Grand Slam Track’s ongoing bankruptcy proceeding have rejected a proposal that would pay athletes 85 percent of owed payments while vendors would get less than 1.5 percent.
In an objection filed in United States Bankruptcy Court in Delaware on Friday, the group of more than 100 unsecured creditors dismissed the plan as a move for the league to rebuild its reputation with the athletes who competed it its inaugural season last year.
A committee appointed by a Delaware state trustee includes Momentum-CHP Partnership, Girraphic Park Ltd. and SRK Strategies which are the largest of the unsecured creditors and said in its filing that its own investigation of the league uncovered “shocking levels of incompetence, bad faith, self-dealing and failures.”
The athletes are owed $7 million in appearance fees and prize money, while vendors are owed around $13 million with over 340 identified creditors listed in bankruptcy documents.
The Michael Johnson-led league owes more than $40 million to its creditors and filed for Chapter 11 bankruptcy in December after months of speculation about its finances when the last of its four scheduled events was canceled in June 2025. Johnson later admitted that Grand Slam Track was in financial trouble when an investor did pulled back on commitment to fund the league.
Meanwhile, the creditors committee has singled out the league’s main investor, Winners Alliance, as a major contributory in Grand Slam Track’s failure.
“The proposed Plan is the final step for Winners to make the athletes close to whole while trying to bury all of the bad conduct under the rug,” the filing said. “To add insult to injury, the Debtor attempts to blame its failures at the feet of the innocent trade creditors who supported the business throughout and have not been paid.”
Under a suggested plan by the league that was filed on February 9, Grand Slam Track said it hoped to reorganized and asked to pay athletes $6 million of what they are owed — about 85 percent — while vendors would split funds from a pool of $200,000, which only accounts for less than 1.5 percent of their outstanding debts.
Winners continues to be a lifeline for the league after kicking off funding efforts when Grand Slam Track was announced in 2024. A proposal by Winners to support the league through bankruptcy was approved by the court in early February.
Since April 2024, Winners has funded the league three times with a $6 million initial investment, $600,000 infusion and over $5.5 million in emergency cash as Grand Slam Track struggled to avoid bankruptcy. In late December, Winners agreed to a $3.25 million loan to handle restructuring and operating expenses — but pushed the organization’s into the league’s largest creditor at $17 million, which is around 40 percent of its debts.
The creditors committee wants the latest plan to be dismissed in time for the next bankruptcy hearing on March 12 along with requesting that the league submit another proposed solution as part of its restructuring.
“At the end of the day, the Plan is nothing more than a disguised Bankruptcy Rule 9019 settlement among insiders where the settlement proceeds are earmarked for a select group of favored creditors,” the creditors said in Friday’s filing.
In a series of numerous objections in its filing, the creditors have established that a plan to nearly compensate the athletes while vendors received a fraction of payments has been orchestrated by Winners to “make the athletes close to whole while trying to bury all of the bad conduct under the rug.”
The committee also notes that through its own future disclosure it will show that the firm has operated in the interest of the league.
“Winners, while cloaking itself as a white knight savior of the Debtor, is actually one of, if not the, primary reason the Debtor has failed,” the filing said. “As will be detailed in a forthcoming draft complaint that the Committee will be seeking standing to pursue, Winners is not an innocent bystander or simple investor in the Debtor. Rather, Winners orchestrated the Debtor’s every step from before the Debtor was even incorporated.”
