GST organizers have said that the competition, which offered lucrative prize money, had been affected by the withdrawal of committed investments earlier in the year, and that it intends to use the Chapter 11 bankruptcy process in the United States “to stabilize its finances, implement a more efficient operating and cost model, and position GST for long-term success.”
Chapter 11 is a mechanism that allows a company to restructure its debts to stay in business.
GST launched this year with events in Kingston and the US cities of Miami and Philadelphia but, amid cash flow problems and low attendance, a fourth meeting in Los Angeles in June was cancelled.
This week it was revealed that, according to court documents filed in Delaware, Scottish middle-distance runner Josh Kerr is among the biggest creditors, with GST owing the athlete £162,000, along with American sprint stars Sydney McLaughlin-Levrone (£265,000) and Gabby Thomas (£186,000).
Speaking about the inaugural Ultimate Championships, a biennial event that World Athletics will host in Budapest next year, Coe said: “We welcome innovation in sport, we welcome new investment, but it has to be backed by a strong and sustainable financial model, executed and delivered on behalf of the athletes.
“We have to do it right. This is not something that can be a happy accident or ‘everything will be fine that night.'”
“And some in this building will be working over Christmas to make sure we don’t let the athletes down.
“There’s a responsibility to make sure you have a business plan that’s solid, a plan A and a plan B that’s bulletproof. You have to execute it very well, and if you don’t, the risk is always going to be that the group you most want to take with you, the athletes, is at risk.”
A prize pool of £7,438,988 will be offered at the Ultimate Championships, with each winner receiving £111,582.