What are the economics of putting on a marathon or 5K race?

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Samantha Janes asks:

I'm a big 5K and half marathon runner. There are a ton in Florida, so I drive to different events around the state to participate. I've always wondered what it takes to hold a successful 5K or half marathon sporting event and what the economics behind it look like.

Planning for a successful 5K or half marathon is often a year-long process that requires managing dozens of staff members, liaising with city officials, navigating financial challenges and dealing with unforeseen obstacles.

"I've had issues with sinkholes in the middle of our route. The day before, the road collapsed and we had to completely change our course" said Michael Clemons, director of operations at Running USA, a nonprofit organization that advocates for the running industry.

Racing events like 5Ks (more than 3 miles) and half marathons (more than 13 miles) are making just enough to break even, a goal that's challenging due to the high expenses associated with putting on a race, tariffs, and greater competition for cash sponsorships, experts told Marketplace.

Putting on a 5K in a smaller market can cost anywhere from $10,000 to $15,000, while a 5K in a large city can cost between $500,000 to $1 million, Clemons said. Meanwhile, half marathons can cost between $50,000 to $75,000 in a smaller market to upwards of $1 million in larger ones.

As the numbers above demonstrate, those costs can change depending on which part of the U.S. you're in and where you're hosting your race.

The Sacramento Running Association puts on local 5K races at parks that can cost under $10,000, said Scott Abbott, the executive director of SRA.

"The running industry isn't a huge financial boon"

Many organizations that put on these races are nonprofit organizations that use them to help fundraise money.

"You see the Alzheimer's Association putting on a walk or a run, or you see pride organizations putting on runs that support the LGBTQ+ community and the efforts that are there to support queer individuals, either in the running space or beyond," Clemons said

There are also for-profit organizations that put on 5Ks or races, although they often still fundraise for a cause.

"The half marathons tend to be for-profit organizations more than 5Ks, just because of the amount of work that goes into it," Clemons said. "A lot of the charitable organizations don't have a dedicated staff or the resources to put on longer races by themselves, so they may look to a for-profit organization to put on the race."

But even if a for-profit organizes a race, there might still be a fundraising component to it. The organization might donate a percent of the proceeds from the raise to a charity, or the individuals who are racing might fundraise for a charity of their choice, Clemons said.

"The running industry isn't a huge financial boon. A lot of what we do is going back to support our communities, going back to support charities. So it's either a break-even or just enough money to cover the costs of what we need to do to support our communities," Clemons said.

Race expenses

Road closures are one of the biggest costs for organizers. You have to pay police officers — who are often working overtime rates — to shut down these roads and provide traffic support, Clemons said.

"It is expensive to close down three miles of roadway, especially if you're in a major city, like if you're in Atlanta or in Los Angeles," Clemons said.

The cost of shutting down roadways in Louisville, Kentucky — which is a big market, but not a major one — can set you back $75,000, Clemons said.

A small 5K event where there are only one or two closures might leave you with a police bill of $3,000 to $4,000, Abbott said.

You also have to pay for medals, T-shirts, and post-race items like water, bananas and other food, which have gone up in price due to tariffs, Clemons said. T-shirts might cost $7 to $10 a person, while medals could cost $3 to $5 a person, Clemons said.

While races rely on volunteers, they also pay some staff members, like the people who time the race. Some might pay for a timing company, which could have a base cost of $1,500, along with a cost-per-participant fee on top of that, Abbott said.

Each runner has a bib and a timing chip to track their progress, and that might be $1 to $1.50 per runner, Abbott said.

"There are multiple timing companies that all have different rates, and a lot of times they might work with a nonprofit, if it's a small event to try to make it within their budget," Abbott said. "But sometimes if the event's very small, it may not be worth it in its first year to have it be a timed event because of that cost."

A 5K could have as few as one or two staff members, and a volunteer group of 10 to 20, while a major half marathon can have a staff of 50 and a volunteer group of 1,000, Clemons said.

"We rely on volunteers to help support a course as course marshals, to help hand out medals at the finish line, to help with the check-in process. So there are ways that you can get creative with volunteers, but it's also really important to not cut the corners too much, where you're sacrificing the safety of participants or you're sacrificing the overall event experience," Clemons said.

Organizers also have permitting costs, which can vary depending on what services you're providing at the event. For example, you're going to have food, you might need to pay for a fire safety permit, Abbott said. Permits can range in the hundreds of dollars, each, and those add up, Abbott said.

There are also waste services that you might want to pay for, like trash cans and dumpsters, which can cost a few hundred dollars to $1,000, Abbott said.

Events also pay for liability insurance, which has a per-participant cost, and can run between a few hundred to a few thousand, Abbott said.

Offsetting costs

Costs and services have gone up across the board in recent years, and the running industry isn't immune to these price increases.

"A lot of times, we as race directors and as race producers have to offset those costs by raising our registration fees and making it more expensive because at the end of the day, we're either trying to break even or raise revenue for a nonprofit," Clemons said. "So it's tough because those fees are continuing to rise, and there's only so much that we can do to offset that."

A small 5K that doesn't close a lot of roads can cost $30 to $40 per participant, while bigger 5Ks and 10Ks can cost $50 to $70, Abbott said. Half marathons and marathons tend to be $100 or more, he said.

Abbott is concerned that participant fees might deter people from participating in races. "We don't want community events to become like snow skiing, where it's only accessible to a certain demographic of people," he said. "That shouldn't be what community events are."

Abbott said it's crucial to have races with different price points so that everyone has the opportunity to participate. Those races with lower price points are probably the most under threat, he pointed out.

To help offset some of the costs of these races, races will often bring in sponsors, but it's getting tougher for the running industry to get cash sponsorships now that there's greater competition for funds from activities like festivals and concerts, Clemons said. Instead, companies might provide "in-kind" sponsorships, which include enough water or bananas for the participants.

To minimize costs, organizers are getting creative. Instead of closing down roads, some might opt for a park, or private property like a car racing track, Clemons said. Some organizations are now also asking if participants want to opt out of receiving a T-shirt or a medal.

"We're not out there trying to just take your money. We're out there for the love of the sport and out there to see events succeed," Clemons said.

A rise in runners

While there was a rise in 5K and half marathon events in the 2010s, the COVID-19 pandemic disrupted that growth, Clemons said.

However, the growth in the number of races is starting to come back and there has been a rise in the number of overall running participants, Clemons pointed out. There was a 12% increase in the number of participant registrations over the past year, according to an October report from RunSignup, a registration provider for endurance events in the U.S.

"We see a lot of new runners who decided during COVID, 'Hey, this is a good way to stay active and stay healthy. Now I want to participate in events, and not only do I want to run events, but I want to bring my friends and family along to participate in the events with me," Clemons said.

Clemons said that he's also seen a growth in younger runners who want to be healthier and meet new people through running events, running clubs and running crews.

"That growth is crucial to making running events sustainable," Clemons said.