Grand Slam Track announces bankruptcy as Athlos, others illustrate what emerging sports leagues need for success

The GIST: After months of financial difficulties, track & field league Grand Slam Track (GST) — spearheaded by Olympic legend Michael Johnson — officially filed for bankruptcy last week. As popular Olympic sports try to extend their reach beyond the global competition, GST presents a cautionary tale as it endured common issues faced by upstart sports leagues.

• That said, women’s track & field competition Athlos is thriving and has plans for expansion, largely due to its conscientious plan and sponsorship strategy. Let’s dive in.

The background: Last June, Johnson launched GST with a plan for four global track meets starring the sport’s top 96 athletes and promising $12.6M in prize money. But problems quickly arose, with GST canceling its fourth and final meet in LA due to financial difficulties, described as “major cash flow issues.”

• And last month, GST asked its vendors to accept half of their total owed payments (estimated to be over $10M) to avoid declaring bankruptcy, which it eventually did two weeks later. Yikes.

The context: The success of burgeoning sports leagues often hinges on investment, and in GST’s case, the withdrawal of an eight-figure investment early in the season caused it to run into the red. It promised significant financial prizes and launched an ambitious global league spanning four cities, but ultimately could not get out of the blocks.

• It’s not uncommon for new sports leagues to fail or restructure — Major League Volleyball merged after facing a challenger league while AU shuttered its lacrosse league. But these hiccups don’t mean that these sports, or organizations, aren’t prime for commercialization — the Women’s Lacrosse League is flourishing despite AU’s shut down.

The Athlos strategy: Though it also wanted to capitalize on the sport’s hype, the women’s track event launched by the aforementioned Ohanian took a different approach than GST. The event was measured (only in NYC and only track for its first year), but ensured it could deliver on promises and scale up in year two thanks to new partnerships.

• Now in its third year, Athlos is planning a multi-meet league and marketing itself as a cultural moment — both Megan Thee Stallion and Ciara have performed at the event in the past. Creating a festival-like atmosphere that merges sports and entertainment has been an effective strategy to win over audiences, similar to the X Games and the US Open.

Lingering thoughts: When GST launched, much of its marketing was behind Johnson’s fame as an Olympian, giving credibility to the league. But launching a sports league is hard: It takes deep pockets, dedicated investment, and supportive brand partners.

• Other leagues have employed this star power strategy, such as Shaun White’s Snow League and Miles Chamley-Watson’s World Fencing League. GST proves that a famous name alone isn’t enough to carry a league long-term — it takes world-class partners and investors to go the distance, something Athlos is on track to accomplish.