Sprinting From Sandy: The Public Relations Storm Surrounding New York Road Runners and the Cancellation of the 2012 ING New York City Marathon Arthur W. Page Society Case Study Competition 2013 On October 29th, 2012, Hurricane Sandy, described as a “freak storm,” ripped through New England, destroying parts of the five boroughs of New York City. As such, the 43rd annual New York City Marathon was cancelled. New York Road Runners (NYRR), the organization that runs the event, failed to communicate with its principle stakeholders about financial reimbursement, plans for 2013, or express empathy for losses and inconveniences. NYRR's primary stakeholders lost their faith and trust in the organization, which in turn severely tarnished NYRR's reputation. This case study identifies the public relations miscalculations and missteps made by NYRR and its CEO, Mary Wittenberg, as well as suggesting possible strategies for the organization’s return to runners’ graces. Sprinting From Sandy: The PR Storm Surrounding NYRR and the Cancellation of the 2012 ING NYC Marathon Table of Contents I. Case Study 1. Overview 2 2. History of the ING New York City Marathon 2 2.1 New York Road Runners 2-3 2.2 New York City Marathon Course 3 2.3 New York City Marathon Finances and Charity Involvement 3-4 3. Hurricane Sandy 4 3.1 Path of Destruction 4 3.2 Death Toll, Property Damage, & Financial Implications 4-5 4. The Cancellation of a Marathon 5 5. Public Perception 8 5.1 Stakeholder Impact 8-10 5.2 Financial Impact 10 6. Summary 11 II. Appendices 12 III. References 15 2 Sprinting From Sandy: The PR Storm Surrounding NYRR and the Cancellation of the 2012 ING NYC Marathon I. Case Study 1. Overview On Monday, October 29th, 2012, Hurricane Sandy violently raged across New England. Businesses and homes were destroyed from New Jersey to Massachusetts. Over 100 people were killed. There was irreparable damage to entire communities, both physical and emotional. In New York City alone, there were 85 deaths between the five boroughs: Brooklyn, Queens, Manhattan, Bronx, and Staten Island. Hundreds more lost their homes, cars, and personal belongings. Six days after Hurricane Sandy hit the Northeast, the 2012 ING New York City Marathon was scheduled to run its 43rd annual marathon. The 26.2 miles were scheduled to span across the five boroughs of the city, starting in Staten Island and finishing in Manhattan. Residents of the city were torn between two emotions: outrage and the need to persevere. Those who were outraged felt that it was inappropriate for the marathon to continue as planned; that the marathon's resources could be better used to help those affected by the storm. Others thought the city should show strength and perseverance and continue with the marathon as planned. As the confusion built, New York Road Runners, the organization behind the NYC Marathon, failed to communicate with its stakeholders. They failed to answer questions, to be proactive, and to empathize with an entire city. Two days before the scheduled start, the marathon was cancelled, culminating in a plethora of communication and public relations missteps, and a firestorm of public backlash. 2. History of the ING New York City Marathon 2.1 New York Road Runners Founded in 1958, New York Road Runners (NYRR) was originally a small group of male and female runners. Lead by legendary African-American running pioneer, Ted Corbitt, the group grew slowly throughout the years, finally launching the first New York City Marathon in 1970. The inaugural marathon consisted of 127 people who paid $1.00 each to register. The 26.2 miles looped only around Central Park, and only 55 of the 127 runners crossed the finish line. Despite the small number of participants, running was a booming sport, and the desire for high-profile running competitions grew accordingly. In 1972, marathon co-founder, Fred Lebow, took over as president of NYRR and four years later, in 1976, reorganized the path of the marathon to go through the five boroughs of New York 3 Sprinting From Sandy: The PR Storm Surrounding NYRR and the Cancellation of the 2012 ING NYC Marathon City. NYRR revolutionized the competitive world of running; they became the first organization to offer substantial cash prizes to its top finishers, as well has launching sub-marathon categories such as the NYRR New York Mini 10K, the Midnight Run, the Empire State Building Run-Up, the Fifth Avenue Mile, and even a wheelchair division in 2000 (“History,” n.d.) 2.2 New York City Marathon Course The modern path of the Marathon can be seen in Appendix 1. The start line is on Staten Island near the Verrazano-Narrows Bridge. After crossing the bridge, the next 11 miles wind through Brooklyn - Bay Ridge, Sunset Park, Park Slope, Bedford-Stuyvesant, Williamsburg, and Greenpoint. At mile 13, about the halfway point of the marathon, runners pass over the Pulaski Bridge and cross into Queens at Long Island City. They continue for two and a half miles before crossing over the Queensboro Bridge and entering Manhattan. Runners then cross into the Bronx for a mile before returning to Manhattan and completing the final miles of the course in Central Park before crossing the finish line at Columbus Circle. It is important to note that bridges, streets, and avenues are closed to vehicular and foot traffic during the marathon, making any form of transportation virtually impossible. 2.3 New York City Marathon & NYRR Finances and Charity Involvement Although many were skeptical of Lebow's decision to stretch the marathon throughout the boroughs, in 1976, 2,090 runners were at the starting line in Staten Island. In 1978, 9,000 people were at the starting line, including world class runner, Grete Waitz, who broke the women's record at the NYC Marathon. As the marathon continued to grow, and more world class runners began to register, so did the city's support for the event and its runners. Today, thousands of people from New York and around the world line the streets of New York City to cheer on their favorite runners, friends, and family members. Many say the marathon creates a sense of unity between the boroughs; even more appreciate the revenue stream it brings to the city. According to a 2010 study, the marathon itself is worth $320 million. In 2010, there were 45,350 runners (Wile, 2012). The entry fee was $149 for US NYRR members, and $185 for US non-NYRR members (2012 prices were raised to $216 and $255, respectively). The fee for internationals in 2010 was $265, raised to $347 in 2012 (Smiley, 2012). On average, a single runner spent $1,800 throughout the course of the weekend, which included food, hotels, and shopping. When you factor in that each runner has an average of three guests with them, the 4 Sprinting From Sandy: The PR Storm Surrounding NYRR and the Cancellation of the 2012 ING NYC Marathon amount of money that pours into the city during marathon weekend is staggering. The race also yields tax revenues of between $10.8 and $11.2 million dollars per year (Wile, 2012). NYRR stresses their involvement in charity organizations and promotes charity fundraising as a large part of the race, on both an individual and corporate level. Individual runners can raise a specific amount of money, between $3,000 and $5,000, for an official ING charity to defer their entrance fee. These charities include NYRR Champion's Circle, Fred's Team, and Team for Kids. Many runners will partner with a charity on their own to raise money, as well. In 2011, runners raised $34 million for various charities, including the official ING charities. NYRR, however, has been under fire for their own lack of charitable contribution. Their 2011 revenue was $53.8 million, however, they only donated $494,000 to charities, $208,340 of which went to its own programs. Consequently, NYRR CEO, Mary Wittenberg, currently earns a yearly salary of $500,843 (Macintosh, 2012). 3. Hurricane Sandy 3.1 The Path of Destruction [Appendix 2] Hurricane Sandy started as a tropical depression in the Caribbean Sea, became a Category 1 Hurricane in Jamaica, moved to Cuba and destroyed the city of Santiago de Cuba, and finally turned towards the Northeast. It first hit North Carolina, sending violent waves into the Outer Banks and washing out part of NC Highway 12. As the storm's path continued to move west, a high pressure cold front from the north was forcing the storm to move towards New York. Adding to the equation of a perfect storm was the fact that it was a full moon cycle; the moon's gravitational pull, when full, creates a stronger-than-usual high-tide. Therefore, the full moon would amplify any storm surge, even ones that were already predicted to be historically large. At 8:00pm on October 29th, high tide, Hurricane Sandy hit land in Atlantic City, New Jersey. A historic surge of nearly 14 feet smashed over the Atlantic City sea wall, destroying the historic boardwalks and many of its memorable attractions (Drye, 2012). From Atlantic City, Sandy crashed through New York City's boroughs, swirled across Connecticut, and finally dissipated over Pennsylvania. 3.2 Death Tolls, Property Damage, and Financial Implications. From the time the hurricane hit land to when it finally dissipated over Pennsylvania, it had ripped through Breezy Point, Brooklyn, where it destroyed more than 80 homes. It destroyed 5 Sprinting From Sandy: The PR Storm Surrounding NYRR and the Cancellation of the 2012 ING NYC Marathon coastlines and even more homes along Long Beach Island and Fire Island.