L.A. Marathon – Frank McCourt’s foundation wants contract changes that could cut or eliminate royalty payments to Los Angeles, as officials weigh the request.
A high-profile Los Angeles event is now at the center of a city budget question: Frank McCourt’s L.A. Marathon is asking the city to restructure how it pays royalties.
Under the terms of the arrangement, the names “Los Angeles Marathon” and “L.A.. Marathon” are city-owned, and the marathon operator pays the city royalties for the right to use them.. The request would do more than update paperwork.. Misryoum reports that the foundation behind the race is asking Los Angeles to waive what the city says are $442. 840 in outstanding royalty payments. while also revising the way future royalty obligations are calculated.
City officials have moved to recommend that the City Council deny the request, according to a memo provided through Misryoum. The contract runs through 2029, and no decision date has been set for the council to act on whether to follow the staff recommendation or direct further negotiations.
This matters because even when a sports event is marketed as an economic and community draw, the accounting details can directly affect city finances, especially in tight budget moments.
The foundation’s proposal targets the threshold that triggers royalty payments.. Since 2004. royalties are required in any year when the marathon’s total revenues exceed a set figure. and the amount the city receives can shift from year to year.. Misryoum reports that the operator wants to raise that revenue trigger so the race could generate more revenue without automatically owing royalties.
The foundation also wants the threshold adjusted annually for inflation and to allow certain revenue deductions. arguing the current method relies on benchmarks established decades ago.. Misryoum reports that a spokesperson said the calculation is outdated and that the goal is to modernize how the city and operator arrive at royalty amounts.
In the city memo. administrative and legislative staff warn that the changes could mean the city receives no royalties and could even create negative fiscal impacts. particularly while the city is facing constraints.. Misryoum reports that the unpaid figure cited by the city reflects missed royalties tied to past years when the operator first raised the dispute. spanning 2022 through 2024.
At the same time, the marathon operator says operational realities may be driving interest in the contract change.. Misryoum reports that operators pointed to sellouts for recent races and said the event’s growth is limited by factors that include parking. access. and safety at the Century City finish area.. The race begins at Dodger Stadium and ends in Century City. where a Metro rail station is planned to open next year.
Meanwhile. the council is also expected to consider another McCourt-related proposal this fall involving a gondola connecting Union Station and Dodger Stadium. according to Misryoum.. For residents and officials. the common thread is how major developments and entertainment events interface with public costs and public oversight.
Bottom line: when cities license big brands and manage complex event logistics, royalty formulas become more than legal fine print, they become a test of how the public and private sides share risk and reward.