After the cancellation of the New York City Marathon, the New York Road Runners club and its insurers have been battling over how much money organizers could reclaim, according to the Wall Street Journal.
At stake is the $15 million in nonrefundable entry fees that runners paid when they registered for the race earlier in the year, plus millions more in ticket sales and sponsorships. The race was scheduled for Nov. 4, but was cancelled in the wake of Hurricane Sandy’s destruction.
According to the Journal, mediating the settlement is Benjamin Lawsky, superintendant for financial services for New York state. NYRR has been prompted to keep mum on making any public statement about refunds for runners.
A source told the paper that partner Lloyd’s has already authorized a "large payment," to NYRR, though the size of the payment has not been decided.
"There could have been no worse time to cancel the race," Mary Wittenberg said on Friday, according to the Journal. "The people were all here and all the money was spent, except for some police fees and the prize money."
Wittenberg faced criticism before canceling the race, as media outlets latched onto the fact that the race was costing millions of dollars while many were without food, heat and shelter in the aftermath of Hurricane Sandy. The race was scheduled to begin in Staten Island, which was hit especially hard during the storm.
After the cancellation announcement, Wittenberg promised runners entry into next year's race or the New York City half-marathon in March – though the club can't offer free entry until it knows how much money it will be able to recoup from Lloyd's.
Do you think the city should give the organizers back the $15 million so they can offer free entry next year?