Four-time Olympic champion Michael Johnson has agreed to refund $726,000 (US$500,000) after claims emerged that he "secretly" paid himself just days before his Grand Slam Track (GST) league collapsed.
Five Australians competed in the inaugural season including Jessica Hull, Abbey Caldwell, Sarah Carli, Peter Bol and Ky Robinson.
Athletes are still owed millions, having only received partial payment for their services.
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They were promised lucrative prize money and salaries in the competition's inaugural season, but the final event was cancelled and organisers later voluntarily filed for bankruptcy in the US.
An American court filing by vendors claimed eight days before the collapse, Johnson "secretly" paid himself $US500,000.
In May 2025, Johnson more than US$2m into the business, after an investor, Eldridge Industries, decided not to throw in the $US40m they initially agreed to.
A GST spokesman disputed the accusation as "unfounded and false".
"While Mr Johnson has been clear that the $500k was a reimbursement and not a payment, to avoid disruption and continue moving forward he and Winners Alliance have agreed to fund the $500k to the plan so that all creditors can benefit and receive a greater distribution in connection with the company's reorganisation and efforts to resurrect the league," a GST spokesperson said.
Johnson's spokesperson added: "Michael has asserted defences to the claim, including that this was a partial reimbursement of over $US2m of expenses advanced by Michael for the benefit of the athletes."
GST has reportedly agreed to amend its plan to get out of bankruptcy. Sources told the BBC the new offer would mean athletes received 70 per cent of their prize money but unsecured creditors would only be given around 15 per cent.
Hull was the only Australian contracted to compete in all four GST events and is owed more than the other Aussies.
The Olympic silver medallist guaranteed for herself $142,000 in prize money with her performances in Kingston, Miami and Philadelphia.
That does not include a base payment she was guaranteed.
"I don't think Michael Johnson went out there to rort people of money. I don't think those were his intentions at all," Hull's father Simon told Wide World of Sports in December.
"It's not the greatest business plan when you don't actually have the cash in the bank but you are promising a delivery. So there were a few mistakes obviously made on his part.
"I think he intended to try and put some growth into the sport, get more eyeballs on it.
"So, no, I don't think he went in with wrong intentions, because then all of a sudden he's gone from American hero to, 'Oh, this guy's ripped off all these athletes'.
"Obviously you don't wanna see her lose money. It's frustrating. I'd love to see her get paid. She did a lot of promotional stuff for them.
"But at the end of the day, if they don't have the money, they don't have the money.
"You take a risk when you sign up with a new venture. You're hoping that it sort of does what it's talked up to do, but it just didn't deliver at the end of the day."
