Entry fees--a Race Director's Viewpoint
by Brian Oster
(taken from Northwest
Runner, December 2002)
In the September issue of this fine publication (Northwest
Runner), Kathy Howe wrote a letter to the editor lamenting the high cost of race
entry fees in the United States in general, and more specifically in this area.
When a few more letters agreeing with her appeared, Martin Rudow followed her letter
sent an urgent message to all the respected race directors in the Northwest to address
the issue. When none of them had the time, he then asked me to do it.
If you were to pick up older issues of this magazine, you could pretty well determine
when the price of a standard 5K/10K event went from a $15 to a $20 entry fee (around
the mid-1990's for most of them). There have been holdouts at the $15 rate, but they
are harder and harder to find. $25 has become the norm for day-of-event entry fees,
and a few of the larger races are even charging $25 as the regular fee, adding $5
onto that for day-of.
Too high? Possibly. There are several issues involved, and my 900 words won't cover
them all.
Let's go over some of the main issues.
Cost to produce. While event entry fees have crept up slowly over the last half-dozen
years, the cost of living and of doing business hasn't been quite so sloth-like.
In the City of Seattle for example, permitting costs and insurance requirements have
risen steadily over the last several years. Additionally, the City mandates how the
roadways used will be controlled and monitored, which usually requires a great deal
of signage (detours, no parking, etc.) and cones. This equipment is rented by the
event at no small cost, generally non-negotiable as far as the City is concerned.
There are a great deal of other costs involved that I believe don't even register
with most participants as they're out having a good time at the run or walk. Rental
equipment such as tables, chairs, generators, port-a-potties, sound systems, scaffolding
and sometimes vehicles; purchased items that include awards (overalls and age divisions),
brochures, flyers, magazine and Internet ads, food, T-shirts.
Ah yes, T-shirts. Here is a cost that continues to increase from year to year...and
we do like our T-shirts, don't we? Uli Steidl asked in his October Letter to the
Editor why the shirt wasn't optional more often. Maybe pay $5 more if you want the
shirt, but have a lower entry fee if you don't. It sounds like a good idea on the
surface, but there are some problems associated with it. Inventory control, mainly.
How many shirts do you pre-order (it generally takes 1-2 weeks (6
weeks for the Farm Race and 8 for Dam to Dam) to get the shirts once you place
the order)? What sizes? What happens if you order 500 shirts and only 300 people
want one? You eat the cost of 200 shirts, probably around $1,000 (much more if the
shirts are long-sleeve). Most smaller events can not afford to take on that kind
of liability. Plus, if you guess on the low end and have to re-order shirts after
the event, then you have the additional costs associated with getting them mailed
out or delivered. ($2.50 for Farm Race)
Kathy Howe's letter in September kept mentioning the large sponsorships that our
races have as justification for lowering entry fees. The fact of the matter is that
with the exception of the largest events in the area - events with 1,500 to 2,000
participants and over - most of the others do not have large cash sponsorships. Sure,
you see an awful lot of logos on the brochures and shirts, but these are primarily
lower-level sponsorships or in-kind sponsors that give a necessary product rather
than money (water for example). These are great and much needed sponsorships, but
they don't pay for your T-shirts or permits.
Another point in Uli's letter was the fact that most of the events these days are
fund raisers for worthy causes, and that maybe the participant is viewed as secondary
to the ultimate goal, which is net proceeds to the charity. This is true to a degree.
In the 1970's and 80's, mass participation in running events was at its peak, and
most of the runs didn't have a charity as the main focus.
Today, many larger non-profits rely on their athletic events for a large part of
their yearly fund raising efforts. Frankly, that's what the public wants as well.
The number one question we receive as an event producer is where is the money going?
People are more particular about how they spend their discretionary income these
days, and a good cause is more important to them than it was years ago. In reality,
the larger events derive most of their profit (net to the cause) from the donations,
pledges and corporate matching programs. The entry fee is designed to simply cover
all of the costs associated with the event...to "break even" for the most
part.