Rock N Roll Marathon money scandal

[TrackCEO]

From today's San Diego Union-Tribune:
http://www3.signonsandiego.com/stories/ ... ndex=46271

Elite Racing Inc. has built one of the nation's largest race promotion and management companies, replicating the success of its flagship San Diego Rock 'n' Roll Marathon in eight markets across the country.

But the privately held company has profited from subsidies from the city of San Diego and questionable payouts from an affiliated charity, The San Diego Union-Tribune has found.

The city has provided discounts worth $127,000 to the Rock 'n' Roll Marathon over the past three years, according to a city analysis obtained through a public records request.

City officials estimate that throughout the 11-year history of the event, the subsidies have topped $400,000.

K E N :roll:

[BillVol]

This was just a matter of time. The same group also runs the Country Music Marathon (and half) in Nashville. A great race, but most road races benefit charities -- not private entities.

[dl]

The actual story headline uses the word "controversy", not "scandal".

[TrackCEO]

The actual story headline uses the word "controversy", not "scandal".

It's a scandal now:
http://www3.signonsandiego.com/stories/ ... ndex=48609

The organizer of the San Diego Rock 'n' Roll Marathon rescinded an application Thursday for $375,000 in city tourism-promotion funds and announced it had hired an outside auditor to investigate questionable payouts associated with an affiliated charity.

The actions come after a story Sunday in The San Diego Union-Tribune showed how Elite Racing Inc. profited from the marathon while its charity foundation acted as race co-host. The charity received more than $600,000 in city subsidies and county grants over the 11-year history of the race.

“We are alarmed by what's uncovered, and we want to bring it to light,” said Scott Dickey, chief operating officer for the Competitor Group, the parent company for Elite Racing Inc.

K E N

[gm]

So it's ok for cities to fork over millions of dollars to billionaire sports team owners in the form of extorted stadia, but this is a scandal? Yawn...

[gh]

I had no idea that (at least some) municipal governments were willing to kick that much into race promotion.

[guru]

I had no idea that (at least some) municipal governments were willing to kick that much into race promotion.

It's a bottom line game. If a race can draw thousands of people to town, who all pay local taxes in their hotel rates, as well as pumping money into the local economy every time they make a purchase, government support of race services are a pittance compared to the revenue, and a no-brainer.

Don't expect it at your 200-person garden variety 5K though.