Grand Slam Track layoffs, compensation cuts
The belt tightening at Grand Slam Track (GST) has begun following the cancellation of the inaugural season’s fourth and final contest in LA. The Michael Johnson-backed startup has laid off six out of a staff of roughly a few dozen and cut pay across the board 15 percent, a source said.
As large pools of money like private equity have flowed into sports with the realization the sector is an asset class in and of itself, inevitably new startups like GST that may not have been funded before the spigots opened will burn through capital at alarming rates. The UFL, which counts PE firm RedBird Capital as an investor, laid off over a dozen last week https://x.com/JamesLarsenPFN/status/1937125994122658177
Nearly all startups lose money in the early years, what is concerning about GST is it cancelled its fourth and final race of the inaugural season.https://frontofficesports.com/grand-slam-track-cancels-los-angeles-meet/ GST has said it will come back for a year two, and the cost savings moves suggest that is indeed the plan. The six laid off were in sales and content, including the chief content officer (I will leave names out).
Whether GST is desperate for cash is unclear. While reporting the LA cancellation story, GST put out the message to me that they were not in a cash squeeze. And then Sportico reported they had a new investor lined up, board member Robert Smith.
My sources tell me Smith was already forking over funds to get May’s Philadelphia event off the ground, which would mean he is not a new investor. That doesn’t mean he is not planning to invest more.
GST is the brainchild of Olympian Michael Johnson, who envisioned four track events annually (thus the Slam) and the best racing stars. Total prize money was announced at an eye popping $12.6 million across the four events (a quarter of that sum was saved with the LA cancellation) The first event in Jamaica suffered from poor attendance (a bit shocking in a country known for track stars). And after Miami, GST shaved Philly down to two days from three.
Winners Alliance invested $30 million in GST. A source close to the fund said its president, former NFLPA player president Eric Winston, is stepping down. He is stepping down for personal reasons only, the source said.