L.A. Marathon operator scrambles to make good on debts

Chris Devine had big plans for the Los Angeles Marathon when the radio executive and running enthusiast acquired the race four years ago for a reported $15 million. Now, however, the race is on the sales block as Devine scrambles to meet a self-imposed June 15 deadline for paying creditors what they are owed.

That kind of uncertainty wasn't envisioned in 2004. Chicago-based Devine Racing Management LLC viewed the annual race as a crown jewel for an endurance sports powerhouse that would buy and create races around the country. The deal also seemed to offer longtime L.A. Marathon owners Bill Burke and Marie Patrick a graceful way to disengage. And it gave the city of Los Angeles an opportunity to end costly subsidies for race-related services.

But operating marathons proved to be as difficult as running one.

The high-powered and costly marketing team that Devine Racing assembled in Chicago was disbanded after struggling to generate new revenue from advertising and sponsorship deals. And the City Council's bid to end race subsidies crumbled after elected leaders mandated that the race be run on a politically acceptable route, despite the higher cost such a change would bring.

Burke and Patrick, who maintained an operating role in the race, have steadfastly declined to comment on the race's problems since selling their equity stake.

Devine Racing's cash-flow problems have grown increasingly public in recent months. Zappos, the online shoe retailer, on May 30 severed its ties with Devine Racing's Las Vegas race, citing the company's financial problems. And some business owners in Los Angeles continue to complain that payments are slow in coming.

"I haven't been paid for the March race yet," said Ron Scardera, who measured the L.A. Marathon course to make sure it met USA Track & Field marathon standards. Scardera said that his checks for the 2007 Las Vegas race also were slow in arriving.

James D. Sprinkel, founder of Buena Park-based Southern California Barricades, said that he hasn't been paid in full for setting up road barriers for the 23rd L.A. Marathon in March.

"I'm still waiting for a percentage of what I'm owed," Sprinkel said. "I've been promised payment several times, and I now have [a] June 4 promise. So we'll see what happens."

Devine Racing founder Devine is scrambling to make good on a promise to pay creditors what they're owed by June 15. As part of that effort, he put the L.A. race on the market with a price tag, according to a published report, set at $9 million to $12 million.