Economics Behind Marathons

Man Preparing for a Marathon, the Economics Behind It

So, what does a marathon mean? There's no denying that the popularity of marathons and the half-marathons that follow them has skyrocketed in recent years. But if you think these competitions are just for the best athletes in the world, you'd be wrong. Everyone from casual runners to those looking for a challenge may choose a marathon that suits their needs. So don't discount the runners who are crossing the event off their list.

Companies are investing in these long-distance races for various reasons, including the prestige and advertising opportunities that come with a permanent corporate sponsorship and the events' high demand among the general public. To what extent, however, do marathons make financial sense? Where does it all go, all that money? Keep reading to learn more about the prices of these contests.

Counting the Costs of a Marathon

Cost of Conducting a Marathon

A marathon is an example of a somewhat inelastic product; even if the entry fee doubles, many people will still choose to run it. They are prepared to pay top dollar because they value the experience. Various prices are associated with entering some of the most prestigious events, from selection lotteries to complete registration. Moreover, the sums related to such penalties are often substantial—the greater the field, the greater the price.

Let's look at the New York City Marathon, one of the most prestigious competitions in the world. They will only accept participants if they satisfy the requirements for participation. The group draws names from a hat to choose who gets to run in the Marathon. Also, there is a status-based registration cost. The entry cost for the 2022 event for citizens of the United States who are also members of the New York Road Runners organisation is $255. For non-members living in the area, that price jumps to $295.

What's the Point of Holding a Marathon?

Reason Why Marathon Takes Place

Typically, the admission fee is a marathon's primary source of income. Runners don't mind paying a premium to participate in events that collect money for a good cause, such as supporting the battle against breast cancer or constructing a new school track facility. Big-name sponsors who want to make a difference in the world often step up to the line to finance charitable races.

Companies have an interest in sponsoring and hosting running events, such as the world's most prominent marathons, due to the positive publicity they get from such endeavours. Like any other commodity, the greater the demand for a service, the higher the price it may command. In all likelihood, one could double the costs of the Boston Marathon, the London Marathon, and the New York City Marathon without affecting attendance since the restricted product (racing places) would still be purchased by those who place a high enough value on the experience to pay the higher price.

Many participants come from far and wide to participate in the world's largest marathons. These types of marathons will bring in a lot of money for the area. If we take the 2020 New York City Marathon as an example (ultimately cancelled due to COVID-19), almost 30% of the drawn candidates approved to compete in the Race were foreign runners.

Visitors to the host city who run the Race spend a lot of money on lodging, dining, and leisure activities.

This also applies to other races that are less renowned yet very popular. The Rock 'n' Roll Marathon, Walt Disney's (DIS) Walt Disney World Marathon, the Colour Run, the Tough Mudder, and many more are just a few instances of such races. It's more profitable for the Race's organiser and the city when it's not time. Therefore, these later types of marathons and races tend to fall into this category.

Did You Know?

1. Dorando Pietri won the 1908 Olympic marathon but was disqualified because umpires assisted him up after he fell five times in the last kilometres.

2. Emil Zatopek's 1952 Helsinki Olympics triumph was one of the best ever. After winning the 10,000m and 5,000m, he completed an unexpected triple.

3. Abebe Bikila won the Rome 9160 Olympics barefoot. Bikila replaced an injured teammate. His win begins East African marathon supremacy.

4. The marathon distance was 26.2 miles in 1908. Queen Alexandra wanted the race to be seen from Windsor Castle. 1896-1908 saw 25-mile marathons.

5. Paula Radcliffe is the quickest woman (2:15:25 London 2003).

6. Everest is the world's tallest marathon. Gorak Shep 5184m (17,000 ft) lies near Everest Base Camp in Nepal.

Conclusion

Even though the current Marathon has been going on for more than a century, there has been a meteoric rise in the number of people participating in the sport during the last 10 years. This follows half mudder law. Due to this, the organisers of marathons should prepare themselves for a rise in annual participation as more people become aware of the many positive effects running has on one's health, as well as the cheap cost and low barriers to entry connected with the activity.