World News

Frank McCourt's LA Marathon to the city: Save us money

The names “Los Angeles Marathon” and “LA Marathon” are owned by the city of Los Angeles. To use those names, the marathon operator pays the city.

The operator — the foundation of former Dodgers owner Frank McCourt — has asked the city to renegotiate the contract between the parties and, in doing so, waive what the city estimates to be $442,840 in outstanding payments.

Two top city officials recommended that the City Council deny the request, according to a memo obtained by The Times.

No date has been set for the City Council to decide whether to agree, or to direct city officials to discuss the decision. The contract expires in 2029.

The issue comes as another McCourt organization awaits a council vote — expected this fall — on approving its proposed gondola from Union Station to Dodger Stadium.

The foundation pays the city an annual fee to cover the cost of city services for the race, including police, emergency services and traffic management. Royalties are different.

Since 2004, according to city records, the royalty fee kicks in any year the marathon's revenue exceeds $3.87 million. The amount of the payment may vary from year to year.

The foundation wants to increase the trigger value, meaning the marathon can generate more revenue without owing royalty payments. The organization also wants to adjust that starting amount every year for inflation and allow certain deductions, all to reflect the rising costs of running a world marathon, spokeswoman Meg Treat said.

“Our goal is to modernize math,” he said. “Using benchmarks that were created 20 years ago, the calculations are old.”

In their letter to the council, city manager Matt Szabo and senior legal analyst Sharon Tso said the changes requested by the agency could cost the city “money” and would lead to “a negative financial impact on the city, especially in a time of financial crisis.”

The former Dodgers owner is attending the UEFA Champions League match between Olympique Marseille, the team he owns, and Newcastle United in November.

(Alexander Hassenstein/Getty Images)

Szabo did not respond to three messages seeking comment. The $442,840 represents the amount paid from 2022, when marathon operators first raised the issue, through 2024.

Marathon officials have told the city that the 2024 and 2025 races are over, meaning that revenue growth — and the city's priority payment opportunities — would require an increase in capacity. The race starts at Dodger Stadium and ends in Century City, where the Metro D Line station is expected to open next year.

“We are currently limited in increasing the size of the marathon field due to parking, access, and safety issues at our finish line in Century City,” Treat said. “We are eager for the opening of the Metro station on the Avenue of the Stars, as we believe that this will allow us to increase our subscribers.”

A city memo noted that, in 2023, operators are moving the pre-show from the city-owned Los Angeles Convention Center to Dodger Stadium, where McCourt owns 50% of the stadium's parking lots.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button