World Athletics has told Grand Slam Track that it will not accept a partial payment deal for licensing rights, according to published reports.
In an article published by The Times on Thursday, the governing body was adamant that athletes who participated in Grand Slam Track’s events — and it vendors — must be paid first and an offer for a 50 percent settlement to resolve debts has been rejected.
On Wednesday, details of an email from the league that was sent to vendors proposed a settlement that would pay half of what is owed in order to help the league remain active and avoid folding according to The Athletic and The Times.
All of the vendors were asked to accept the offer by early December in order for payments to be issued.
League officials explained that paying out half of debts would be a necessary step to ensuring that a second season of competition would be in the works sometime in 2026.
And according to sources in the report from the Times, World Athletics is owed nearly $40,000 and will not take less from the league. The governing body was contacted by law firm Levene, Neale, Bender, Yoo & Golubchik LLP, the same firm that contacted other vendors requesting they agree to the partial payment so Grand Slam Track would not file for bankruptcy.
World Athletics has been actively monitoring the fallout from the impact that Grand Slam Track’s financial issues have had on the sport and athletes who participated in the league’s three events this year.
As word spread that the league had money problems in June, some athletes and their representatives contacted World Athletics and asked for assistance since nearly $13 million in appearance fees and cash prizes had not been paid dating back to the first meet in Kingston, Jamaica in April.
League founder Michael Johnson has been transparent about state of Grand Slam Track’s finance after rampant rumors persisted after the final scheduled meet in Los Angeles in June was canceled. He said an investor did not meet its commitment, something that was apparently an issue since the Kingston meet, which had low attendance.
Meanwhile, World Athletics’ reported refusal to accept half of what it is owed will likely signal other vendors to take a similar stance. But for these vendors, all of which have smaller name recognition than track and field’s governing body, the options are limited and could include legal action.
Grand Slam Track’s message to the vendors was clear that the 50 percent payment deal would be a necessary step toward keeping the venture alive but also be a conditions of an outside entity acquiring or investing in the league.
