Michael Johnson’s Grand Slam Track, despite being launched just this year, has been changing things in the track and field landscape. However, it seems like the change lacks some crucial foundations. And it has left netizens wondering if GST is, in fact, here to stay or just for the hype. While Grand Slam Track will have its debut season only in 2025, they have announced the track meet locations!
The races are set to happen in Kingston, Miami, Philadelphia, and Los Angeles. The Jamaican capital will see GST happen between April 4-6 at the National Stadium in Independence Park. This will be followed by the run at Franklin Field, the home of the historic Penn Relays. GST will also make a stop at Los Angeles Memorial Coliseum and Miramar Regional Park Stadium. Sounds exciting, doesn’t it?
It gets better! GST is bringing names like Sydney McLaughlin-Levrone, Fred Kerley, and Grant Fisher to the track. Sounds almost too good, right? Here’s where things get tricky. So, how does all this get funded? It is four international cities with a rather large number of track athletes. The revenue model is one that relies on unpredictable factors like ticket sales, sponsorships, and fan engagement. Now, GST offers more, which means more expense!
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Let’s not forget GST is also putting up a big prize money, travel, and venue costs. So, as per Raes Rake TV’s calculations on X, the “estimated cost for the year…roughly $15,201,000″. This also means they have already lost 50% of their initial funding. In the very first year, “their 30 million would drop down to less than 20 million. ” And wait a minute, what about the broadcasting?
Normally, a major portion of track and field league funding usually comes from broadcasting rights. But that’s not the route Grand Slam Track has taken. With traditional broadcasting models changing, especially in the US, where NBC chose not to renew its contract with the World Athletics Diamond League, there’s a clear need to rethink how track and field is packaged for the new audience. And GST seems to have found a new solution.
Allegedly, all of GS Track Meets will be streamed via YouTube on CitiusMags YouTube channel. I’m not totally mad at that. Makes it very accessible to watch the meets so that’s a win. But let’s do some basic math estimated evaluations:
48 athletes x approximately $50k (low end…
— Raes Take TV (@RaesTake) November 14, 2024
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Can Michael Johnson's Grand Slam Track survive without major sponsors like Nike or Adidas backing it?
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So, where to watch GST? Well, it is being said to be streamed via Citius Mag’s YouTube channel. Now, while it is understandable that the choice of the magazine is because of their affinity to track. But skepticism here is justified as one big question comes up. With YouTube streaming and four international locations, can these numbers really work? With expenses and no broadcasting rights revenue? As Raes Take TV puts it, “They have a lifespan expectancy of 3 years before collapsing.“There’s an evident gap between income and expenses, and netizens are already questioning all the loopholes.
Netizens raise questions about financial feasibility
As one fan went on to rightly put the collective emotions, “Do they have secured partnerships and sponsors? Even then, they would need big sponsors to help cover that huge deficit. If you haven’t secured sponsorship by now … a big yikes.” Let’s rewind a little. So Grand Slam Track started off raising $30 million in commitments, with primary funding from Winners Alliance. Now, why was this done? The idea was to create a self-sustaining model that does not rely on TV sponsors! Here’s where things get concerning.
Now, usually, most leagues apart from broadcasting also have brand deals with big brands, most of which are usually shoe companies. But these brands are important to boost visibility and ease financial strains. How did they plan on generating income? Well, by focusing on the competition and crafting great athlete stories that draw sponsors and investors. As of now, Grand Slam Track, despite having announced meet locations, is yet to get such funding. So what’s the plan?
As another fan rightly puts it, “I love this idea bc track is my first love, but I need more info on GS’s business model.” Let’s look at the structure GST is working with. Grand Slam Track is planning on bringing in 48 athletes at an approximate $50,000 per contract on the low end. $2.4 million for athlete salaries alone (doubling it for high-end contracts brings the total to $4.8 million). Now combine that with the prize of $12.6 million. That’s already a total of $15.2 million for just the athletes and prize. And that is just the start!
Now, there needs to be travel and lodging for athletes. This could cost around $153,000, assuming $200 a night for 24 hotel rooms and 48 airfare tickets. Then comes venue rental costs that are approx. $18,000 per event, with U of Penn’s venue potentially being more expensive. And marketing? Estimating that to be around $30,000, the total for GST just got a whole lot higher! But aren’t there other ways to improve income? Of course, there is.
For example, as a fan points out, “Aren’t they 3-day events? So you could triple (at best) the ticket revenue.” So, let’s crunch some ticket numbers. If GST manages to sell out Zurich’s 50,000-seat stadium, that’s around $2.5 million in ticket sales. But Miramar? At just 5,000 seats, the revenue could be a maximum of $250k. While Kingston is an opportunity, it still hits around $1.7 million with its 35,000 seats, and U of Penn’s 50,000-seat stadium could bring in another $2.5 million if sold out. So, how much does that add up to?
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Well, if every stadium sold out. It adds up to around $5,035,000 in ticket sales for the year. A great number, but it falls short when compared to the 15.2 million in estimated costs. Additionally, GST is already facing a shortfall of $10.1 million. So it’s clear that just the ticket prices might not do, Micheal Johnson might have to think of something better. Some netizens have already done that and pointed out some possible ways of recovering the expenses.
One fan went on to write, “So meet and greets. School district events. Vendor spaces, streamers, and influencers. The money is in the engagement.” It is a fair point, considering a lot of track and field popularization has happened over social media. This becomes especially true with events like the Paris Olympics. So yes, all these initiatives could bring in money, but only so much. So, what exactly is going on with GST’s finances?
The answers seem to elude the world at large. However, there’s a niche part of the fandom that feels the lack of sponsors is due to an entirely different reason. “If Sha’Carri and Noah aren’t signed up, GS Track will miss out on a massive American audience.” The netizen is not far off in assuming the possibility. Noah Lyles and Sha’Carri Richardson undoubtedly have a screen presence that calls for attention!
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Not just attention from the media but from the world at large. When Lyles gets on track and does his pre-race antics, eyes around the world are glued to the screens for those precious seconds. And no doubt, it’s the same with Sha’Carri Richardson. When she steps on track with her hair, which has become a symbol of authenticity and, of course, the iconic nails, the world cannot help but watch. And maybe Grand Slam Track does lack some American persona. While the debate continues, another fan has directed the question elsewhere.
As one fan asks, “@MJGold questions are being asked. You have clarification?” The world will have to wait for the same. Micheal Johnson’s answers to these will perhaps define the sustainability and longevity of Grand Slam Track! The fact, unfortunately, still remains that if GST can’t get a strong presence in media as expected, they may struggle to compete with other established sports leagues in terms of revenue generation.
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Can Michael Johnson's Grand Slam Track survive without major sponsors like Nike or Adidas backing it?