Top 5 Most Profitable Marathons

The history of marathons dates back to 490 BC. Did you know that the name Marathon originates from an ancient Greek legend and to this day remains an actual city in Greece?

Pheidippides, the messenger, was sent from Marathon to Athens to spread the news of the Persians’ defeat in the Battle of Marathon. Legend says he ran the entire distance (28km)  without stopping before collapsing and dying upon reaching Athens. 

To this day marathons remain an extremely relevant topic. Nowadays though, besides looking at marathons from the aspect of health we can view them from a more business-oriented approach, which is exactly what we are going to discuss today.

Bank of America Chicago Marathon 

Location: Chicago, USA

Annual Revenue: Since 2018, it consistently surpassed a $300 million revenue benchmark annually

Key Sponsors: The main sponsor is the Bank of America, hence the name Bank of America Chicago Marathon. Other official sponsors include: Abbott World Marathon Majors; Nike; Tata Consultancy Services; Gatorade; Advocate Health Care; Biofreeze

Unique Selling Points (USPs): The fast and flat course is one of the main reasons why it became so popular. It’s easier to set a record, either personal or worldwide when the course you’re running is flat. The Chicago Marathon is included in the list of both top six World Marathon Majors and World Athletics Label Road Race. 

Strategies for Profitability: 

1. Sponsors: Their biggest profit comes from their famous sponsors. The event being held by the Bank of America speaks for itself. Their sponsors help lure in elite runners who set world records by building a relationship with them. 
2. Cash Prize: The big cash prize is also a great way to get people to want to participate. Their prize of $100,000 for first place is definitely one of the things people go for. Their sponsor Nike also gives out a bonus of $50,000 to the person that sets the world or race record. 
3. Ticket Sales: Their entry fee isn’t that pricey on a grander scale, but isn’t cheap either. To even send an application you need to pay $240 as a US citizen and $250 as a non-US citizen. Compared to some other races this isn’t the most expensive fee, nonetheless it does help gain profit to at least cover the costs of hosting the event considering the huge number of more than 48,000 participants.
4. Charity: Besides running for your own enjoyment and the cash prize you participate in a good cause. There are numerous charities which you can donate money to. In 2022 10,000 of the marathon’s charity runners raised a staggering $27.8 million for 180 causes.

The New York Marathon

Location: New York City, New York

Annual Revenue: $92.6M per year

Key Sponsors:  One of their biggest sponsors is Tata Consulting with whom they signed an 8 year contract for $100 million. Other sponsors include: Citizens Bank; Mastercard; NewBalance; United Airlines

Unique Selling Points (USPs): One unique selling point is definitely the location. The infamous big apple attracts millions of tourists due to the city’s popularity alone. Add a marathon to that equation and you’re guaranteed to host a successful event. They also sell apparel that is appropriate for the marathon, such as: headwear, shirts, socks, sweatshirts, water bottles, etc.

Strategies for Profitability:

1. Apparel: Besides having apparel that is specifically in theme with the marathon, they have a partnership with NewBalance.
2. Sponsors: Like most marathons their biggest profit comes from their sponsors. Their $100 million sponsorship with TCA is one of a kind even when compared to other marathons. Cash Prize: Just like in the Bank of America Chicago Marathon the first finisher of the race wins $100,000.
3. Ticket Sales: The tickets are a tiny bit more expensive for the New York marathon in  comparison to the Chicago Marathon, but that is due to the location. An entry fee may cost you $295 and it still doesn’t guarantee your participation in the race. After all, the city itself isn’t your average city.
4. Virtual Marathon: If you didn’t get the chance to join the marathon offline you’re in luck because NYRR provides you with the option to join the marathon online.
   
5. Charity: Back in 2022 $34.5 dollars were raised for numerous charities by 8,500 runners.

 

Valencia Marathon

Location: Valencia, Spain

Annual Revenue: €13.2 million

Key Sponsors: Their top sponsors are: Fundación Trinidad Alfonso and Cultura del Esfuerzo. Their other big partner’s NewBalance. A few others are: Caixa Bank; CocaCola; Movistar; msc; Feria Valencia

Unique Selling Points (USPs): Like a lot of other marathons they bring a big profit to the city, but the Valencia marathon stands out because they raised the city’s economy so much that an investment of €1 generated €3 in GDP. Unlike other marathons this one even boosted employment. An increase by a whole 9% since 2019 which created a whole 571 full-time jobs yearly.

Strategies for Profitability:

1. Cash prize: The person who breaks the world record gets a whopping $1 million. The winner of the race can win up to €470,000.
2. Ticket fees: 48% of costs for hosting the event were distributed from entry fees. The ticket fees start at €80 and end at €180.
3. Sponsors: The other 41% of costs were distributed from sponsors.
4. State Financial Support: Unlike a lot of other marathons Valencias Marathon has wonderful state support – 11% of costs are covered by the Valencia City council and Sociedad Deportiva Correcaminos.

London Marathon

Location: London, United Kingdom

Annual Revenue: $39 million per year

Key Sponsors: Their 5 main sponsors are: TCS; NewBalance; Abbott; Buxton; Coopah

Unique Selling Points (USPs): Their online race attracts a lot of people. About 8,518 runners from around the world participated in the TCS London Marathon virtually in 2023. They also have official merch from their partnership with NewBalance.

Strategies for Profitability:

1. Charity: The London Marathon holds a world record for raising the most amount of money for multiple charities. In 2022, the British Heart Foundation generated £2.3 million in funds. Children with Cancer UK surpassed this with an impressive £2.6 million raised. The Great Ormond Street Hospital Charity, selected as the Charity of the Year, nearly reached the million-pound mark in fundraising during 2022. Participants contributed to a cumulative fundraising total exceeding £1 billion. Notably, the 2019 London Marathon set a record by raising £66.4 million, marking the highest amount ever collected in a single-day fundraising event.
2. Virtual Race: Just like the New York Marathon, the TCS London Marathon offers a chance to participate online
3. Location: The famous location attracts thousands of people from around the globe annually. A lot of people want to see famous landmarks that are included in the course. 
4. Ticket Fees: More than 48,000 people participate in the marathon. £70 for UK citizens and £146 for international participants + £20 carbon offset fee for CO2 emissions from participant travel. Keep in mind that not everyone gets accepted into the race, therefore we can conclude that a lot of their revenue comes from the entry fees. 
5. Merch: Official merch listed on their website from their partnership with NewBalance.

Paris Marathon

Location: Paris, France

Annual Revenue: €6 million.

Key Sponsors: A lot of the revenue ASO (marathons organization) gets every year comes from their €1 million deal with Schneider Electric. Other top sponsors are: Asics; Banane Guadeloup De Martinique; BMW; Vittel; Garmin 

Unique Selling Points (USPs): What really stands out in this marathon is that it’s organized by ASO, the organization that is responsible for the Tour de France. No other marathon is on their level when it comes to this professional aspect. 

Strategies for Profitability:

1. Partnership: Their partnership with Amaury Sport Organization since 1998 really boosted their popularity. Who wouldn’t want to join such a global event?
2. Ticket Sales: Their entry fee is less expensive compared to a lot of other races. The cost may vary from €75 to €110. Nonetheless, it is one way the marathon organizers profit from hosting such an event.
3. Sponsorships: Asics pay $600k yearly to be the main brand in the Paris marathon.

Conclusion:

All in all we can say that despite all the little differences each marathon has, the way they profit off of such events is pretty much the same: sponsorships, ticket fees, other partnerships, charities, and merchandise. They simply cater these things to their specific audience, but the general idea stays the same.