August 26th, 2008

Dodger’s Owner Backing L.A. Marathon Sale

by Toni Reavis in News and Views

Frank McCourt, owner of Major League Baseball’s Los Angeles Dodgers, issued the following release late yesterday afternoon regarding inquiries about his interest in the Los Angeles Marathon.

LOS ANGELES, Calif. (August 25, 2008)-

“I am prepared to provide financial backing to Going the Distance, a group formed by Los Angeles business executives Russ Pillar and David Kingsdale, to acquire the rights to the Los Angeles Marathon from Chicago‐based Devine Racing Management affiliated entities so long as necessary terms can be worked out with Devine Racing Management affiliated entities and the City of Los Angeles. It’s no secret that the rights to the race are for sale. The Los Angeles Marathon is an important civic asset that has the potential to have an even greater positive impact on the City of Los Angeles. Because of its great potential, I am evaluating the opportunity together with Going the Distance.

“The Los Angeles Marathon could attract more runners, visitors, and corporate sponsors from around the world. It could stimulate economic activity, boost local tax revenue and benefit community and non‐profit organizations dedicated to youth, fitness, and health.

“A number of conditions must be met with both Devine Racing Management affiliated entities and the City of Los Angeles before any deal can be completed.”

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The involvement of Dodger’s owner Frank McCourt would bring to the L.A. Marathon an organization which understands sports marketing at the highest level.  It would also send a clear message to the L.A. city council - which controls the rights to the event, and which is owed several hundred thousand dollars in back services by Devine Racing, the circumstance which has held up the sale to this point - that a respected local civic institution is behind the future of the marathon.

Devine Racing has been under the gun for some time, not only in Los Angeles, but in Clark County Nevada for not paying their bills for the Las Vegas Marathon.   Clark County has required Devine to put up a $3 million surety bond in order to stage the 2008 Las Vegas Marathon.  The sale of the L.A. Marathon would give Devine Racing the funds to successfully hang on to its Las Vegas event.

In Los Angeles, the city council’s budget committee held up the sale of the marathon from Devine to Going the Distance until the funds owed the city were taken care of. 

 END

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3 Responses to “Dodger’s Owner Backing L.A. Marathon Sale”

  1. Scott Bush says:
    August 26th, 2008 at 12:07 pm |

    That certainly is a unique situation, and goes to show that certain aspects of our sport are starting to be viewed more as a business than a mere activity or event.

    However, I question time and again how Devine Racing is still in business. With all the money they’ve owed and various problems they’ve had with LA and Las Vegas, it’s amazing they are still allowed to put on races in these cities, or anywhere for that matter.

    I wonder if this will start becoming a trend, with major sports business people investing and organizing road racing events. If it does become the norm, will this carry over to track and field and will it influence the professional side of the sport at all?

  2. Toni Reavis says:
    August 26th, 2008 at 12:33 pm |

    I would suggest that one aspect of our sport, road and track, which has not been well served is at the level of event owners, most of whom are either non-profits, or small and independent. I have a business friend who once said, “In my association with your sport the one thing I’ve never seen is a person who looks like they are on their way to becoming an NFL owner.” Well, in Frank McCourt we have exactly that level of business person. The need to more fully integrate and utilize best-use business practices in running is long overdue.

  3. Scott Bush says:
    August 26th, 2008 at 12:46 pm |

    How can road racing, or track and field for that matter, attract more business people like McCourt? Obviously creating a spin-off road racing organization from USATF would help, as talked about on this site before, but is there anything else that could be done?

    For example, if I wanted to start a professional track and field meet in Chicago, what would be the best approach to try and attract “big money” owners to invest in such a venture? I think that is part of the problem. People don’t necessarily know how to approach big business owners and market a road race or track meet as an actual money-making business.

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