The names “Los Angeles Marathon” and “LA Marathon” are owned by the City of Los Angeles. To use those names, the marathon operator pays royalties to the city.
The operator – the foundation of former Dodgers owner Frank McCourt – has asked the city to restructure the contract between the parties and, in doing so, would leave the city owing $442,840 in outstanding royalty payments.
Two top city officials have recommended the City Council deny the request, according to a memo obtained by The Times.
There is no date set for the City Council to decide whether to consent, or to direct city officials to negotiate a proposal. The contract expires in 2029.
The issue comes as another McCourt unit awaits a council vote to approve a proposed Gondola from Union Station to Dodger Stadium — expected this fall.
The foundation pays a fee to the city each year to cover the cost of city services for the marathon, including police, paramedics, and traffic management. Royalty fee is separate.
Since 2004, royalty payments are triggered any year the Marathon’s total revenues exceed $3.87 million, according to city records. The amount of payment may vary from year to year.
The foundation wants to increase the trigger amount, meaning Marathon can generate more revenue without any royalty payments. Spokeswoman Meg Treat said the foundation wants to adjust that trigger amount annually for inflation and allow for some revenue cuts, all to reflect the rising costs of organizing a world-class marathon.
“Our goal is to modernize computing,” he said. “Using benchmarks created 20 years ago, current calculations are outdated.”
In their memo to the council, city administrative officer Matt Szabo and chief legislative analyst Sharon Tso said that the foundation’s requested changes “will not result in any royalties to the city” and will result in a “negative financial impact on the city, especially during a time of financial constraints.”
The former Dodgers boss attends the UEFA Champions League match between his team and Newcastle United at Olympique Marseille in November.
(Alexander Hasenstein/Getty Images)
Szabo did not respond to three messages seeking comment. The $442,840 represents unpaid royalties from 2022, when Marathon operators first raised the issue, through 2024.
Marathon operators told the city that the 2024 and 2025 marathons are sold out, meaning revenue growth – and the possibility of significant royalty payments to the city – may require increased capacity. The race starts at Dodger Stadium and ends in Century City, where a Metro D Line station is scheduled to open next year.
“We are currently limited in increasing the size of the marathon field due to parking, access and security constraints at our finish line in Century City,” Treat said. “We are looking forward to the opening of the Metro station at Avenue of the Stars, as we believe it will help us increase our enrolment.”
The city memo states that, in 2023, operators will move the Prerace Expo from the city-owned Los Angeles Convention Center to Dodger Stadium, where McCourt owns 50% of the stadium parking lot.
