How can Boston Offer Full Refunds, but every other race cannot?

I was as surprised as anybody to get the refund offer but I suspect two things: the BAA is banking on the take-up of that offer to be low; and they're already sitting on a pile o' cash.

Unlike other races, the BM does not struggle to attract entrants and I do not believe for a second that they price their race so that they barely break even - like most other races.

So did Chicago Shamrock Shuffle refund 2 million dollars in entry fees.

B of A Shamrock Shuffle wrote:

So did Chicago Shamrock Shuffle refund 2 million dollars in entry fees.

At that point they probably made enough in interest holding the money to pay for any expenses they already incurred. BAA has been holding closer to $5 million for 6 months.

IAAF label regulations require races to purchase insurance so they can refund entry fees.

r2k83 wrote:

B of A Shamrock Shuffle wrote:

So did Chicago Shamrock Shuffle refund 2 million dollars in entry fees.

At that point they probably made enough in interest holding the money to pay for any expenses they already incurred. BAA has been holding closer to $5 million for 6 months.

Shamrock Shuffle is owned by one of the largest banks in the world. I think they have access to money.

You paid someone money to run around on a street when that is an activity you can do for free. The only goods exchanged where your legal currency and the race packet. If they are shipping you that, then stop complaining.

A lot of race money goes to a charity or cause of some sort. Don’t be petty and ask for a refund from a likely non-profit because you don’t get to run.

It’s called a reserve account. Kind of like a personal savings account or rainy day fund. The BAA is unlike most RD’s in that it has a healthy find balance and reserves in place for a situation like this. Comparing the financials of Boston with other races is like comparing the finances of the NFL with your neighborhood flag football league.

Covid 19 is exposing the RDs with solid business acumen and secondary revenue streams vs. the enthusiast hucksters. If this drags out more than six months, 80% of road races will disappear by year's end.

just another dreamer wrote:

IAAF label regulations require races to purchase insurance so they can refund entry fees.

Do you have any proof of this? According to the link below, Gold label races (and I assume any large road race) must have liability insurance in case they were to get sued. Liability insurance is not going to cover the cost of refunding race fees in case of a cancelled race.

Lenny Leonard wrote:

You paid someone money to run around on a street when that is an activity you can do for free. The only goods exchanged where your legal currency and the race packet. If they are shipping you that, then stop complaining.

A lot of race money goes to a charity or cause of some sort. Don’t be petty and ask for a refund from a likely non-profit because you don’t get to run.

I'm not complaining at all. I literally said the words "I understand the position the position these races are in..."

Christ the reading comprehension on these boards is horrible.

just another dreamer wrote:

IAAF label regulations require races to purchase insurance so they can refund entry fees.

So why didn't Tokyo offer a refund? I am pretty sure they're an IAAF label race.

Joe Jackson wrote:

just another dreamer wrote:

IAAF label regulations require races to purchase insurance so they can refund entry fees.

Do you have any proof of this? According to the link below, Gold label races (and I assume any large road race) must have liability insurance in case they were to get sued. Liability insurance is not going to cover the cost of refunding race fees in case of a cancelled race.

https://iaafmedia.s3.amazonaws.com/competitioninfo/c2127e60-9aa4-40d9-bd90-43fd7db3d607.pdf

Boston is listed as an IAAF Platinum Label race for 2020. Platinum must have refund insurance:

I'm guessing their insurance had a virus or pandemic exemption like most.

pattylover2001 wrote:

just another dreamer wrote:

IAAF label regulations require races to purchase insurance so they can refund entry fees.

So why didn't Tokyo offer a refund? I am pretty sure they're an IAAF label race.

Probably a clause in their insurance policy doesn't cover pandemics

As someone who has directed over a dozen different races, I disagree with the belief that all races spend their entry fee money well before the race.

It depends on the race, and the race director.

Most of the races I directed had very minimal start up costs. Land and route use permits, insurance, and other things needed to be paid for well in advance of the race. Other things, like awards, shirts, food, etc. were not purchased and paid for until later, often within the last month of the race.

You might have to pre order some items, but normally you could not take delivery of those too far in advance unless you had a huge warehouse to store them in. Down payment or some prepayment was required, but often that was not finalized until the amounts and delivery details were worked out month or so out.

Race directing can be quite profitable, even on a small scale. Consider how many races are run as benefit events where non-profit and other organizations receive some of the proceeds. There is long history of some running races being directed primarily to exploit runners for profit. Some events are more runner friendly than others but many runners never question where their entry fee goes.

Admittedly many of the events I directed were smaller (<1000 participants) and did not involve security, fees for road closures, etc. Also, I directed these as a volunteer.

Larger events may involve other contracts and commitments in advance with payment up front, and the event directors and staff may be well compensated.

It would certainly be a hassle for many events to issue refunds. Some of the online registration systems being used are not set up to issue refunds. Many events simply state no refunds because of this.

I advise any runner who entered a now cancelled race that did not specifically include a no refund policy to politely contact the event director requesting a refund. If they say no, ask why not.

If you are not satisfied with the answer, or they never reply, don't enter that race again and tell other runners about it. You can also start directing your own race(s).

race directors are so greedy it's sick. I wish the race directors would chime in on why they don't give money back.

The Boston Marathon is sponsored by Boston-based John Hancock, one of the largest insurance providers in the United States. JH probably stepped in to guarantee the refunds. I doubt the other races you mentioned have that kind of sponsor/coverage.

Pittsburgh marathon offered full refunds or a virtual option.

I took the refund and got my check this week minus the website fee (i think it was $3.50, and no loch ness monster involved).

it's spelled I-N-T-E-G-R-I-T-Y