Sprinting from sandy:

1. Sprinting from sandy: New york road runners and the pr storm surrounding the 2012 ing new york city marathon

2. History of new york road runners • 1958 - FOUNDED BY RUNNING PIONEER, TED CORBITT. • 1970 - INAUGURAL NEW YORK CITY MARATHON • 127 PEOPLE REGISTERED • $1.00 REGISTRATION FEE • MARATHON COURSE CIRCLES CENTRAL PARK FOR ALL 26.2 MILES. • 1972 - FRED LEBOW TAKES OVER AS NYRR PRESIDENT • 1976 - MARATHON COURSE EXPANDS ACROSS FIVE NYC BOROUGHS • 1972-1981 – MARATHON SUBCATEGORIES LAUNCHED • 1980 - NYRR AMONG THE FIRST ORGANIZATIONS TO OFFER SUBSTANTIAL CASH PRIZES FOR TOP MARATHON FINISHERS • 2003 – SIGNS MULTI-YEAR DEAL WITH ING AS MARATHON TITLE SPONSOR • 2005 – MARY WITTENBERG BECOMES PRESIDENT AND CEO OF NYRR, AS WELL AS RACE DIRECTOR OF NYC MARATHON

3. 2012 ingnyc marathon course nyrr.org

4. 2012 ingnyc marathon course nyrr.org

5. 2012 ingnyc marathon course nyrr.org

6. NYC MARATHON FINANCIAL IMPACT • The ING NYC Marathon is estimated to be worth $320 million. • 2012 entry fee: • US Resident - $255 • International - $347 • On average, a single runner spends $1,800 over the course of the weekend. • Each runner averages three guests. • Runners can choose to run for an official NYRR Charity instead of paying entry fee. • Must raise $3,000 - $5,000 individually • In 2011, $34 million raised for charity • NYRR 2011 total revenue: $53.8 million. • Only donated $494,000 to charity • $208,340 of that to their own charities

7. SANDY’S PATH OF DESTRUCTION weather.com

8. Sandy’s aftermath • DEATH TOLL: 108+ PEOPLE • HOMES AND BUSINESS WITHOUT POWER: 656,000 • MAJOR HIGHWAYS, SUBWAYS, BRIDGES, AND TUNNELS CLOSED. • NEW YORK STOCK EXCHANGE CLOSED FOR TWO DAYS. • TOTAL AMOUNT OF REPAIRS FOR NEW YORK: $42 BILLION • $32 BILLION FOR “REPAIRS AND RESTORATION” • $9 BILLION FOR PREVENTATIVE MEASURES AGAINST FUTURE STORM • TOTAL AMOUNT OF LOSSES IN NYC: $19 BILLION • $3.8 BILLION COVERERED BY PRIVATE INSURANCE. • $4.5 BILLION IN FEMA ASSISTANCE. • $9.8 BILLION OUT-OF-POCKET

9. THE CANCELLATION OF A MARATHON • LATE EVENING, MONDAY, OCTOBER 29TH • NYRR President & CEO, Mary Wittenberg, announces that NYC Marathon will not be affected by Hurricane Sandy. • TUESDAY, OCTOBER 30TH • Wittenberg issues official statement: • “…NYRR continues to move ahead with its planning and preparation.” • WEDNESDAY, OCTOBER 31ST • Mayor Bloomberg issues official statement: marathon will continue as a symbol of vigilance. • Wittenberg issues statement regarding race fees. • Withdrawal = guaranteed spot in 2013 race, but 2013 fee is still mandatory. • No entrance fee reimbursement for 2012.

10. The cancellation of a marathon • MORNING, FRIDAY, NOVEMBER 2ND • Marathon Expo at Jacob K. Javits Center takes place. • Mayor Bloomberg issues statement: marathon is still on. • “We have a 24/7 operation going that I’m confident we’re going to do.” • LATE AFTERNOON, FRIDAY, NOVEMBER 2ND • Marathon cancelled. Wittenberg and Bloomberg issue joint statement. • Bloomberg – “We cannot allow a controversy over an athletic event…to distract attention away from all the critically important work that is being done to recover from the storm…” • Wittenberg – “Today it is my job to say there will not be a 2012 ING New York City Marathon.”

11. THE CANCELLATION OF A MARATHON probusy.blogspot.com

12. The cancellation of a marathon • SATURDAY, NOVEMBER 3RD • First email goes out to NYRR registered marathon runners from Wittenberg. • Suggests reason behind marathon cancellation is “antagonistic” and “grueling” media coverage created unsafe environment for runners. • Asks for donations for NYRR’s “Race to Recover” charity. • No information on financial reimbursement.

13. The cancellation of a marathon “The decision was made after it became increasingly apparent that the people of our city and the surrounding tri-state area were still struggling to recover from the damage wrought by the recent extreme weather conditions. That struggle, fueled by the resulting extensive and growing media coverage antagonistic to the marathon and its participants, created conditions that raised concern for the safety of both those working to produce the event and its participants. While holding the race would not have required diverting resources from the recovery effort, it became clear that the apparent widespread perception to the contrary had become the source of controversy and division.”  -Mary Wittenberg, November 3rd, 2012

14. Stakeholder response • ONLINE MESSAGE BOARDS • Mostly negative • “I will never run another NYRR race.” • “…disingenuous.” • “She can give away millions of runners of money [sic], many of whom are barely scraping by, but she will gladly keep her bloated salary.” • NEWS MEDIA • MIKE VACCARO – NEW YORK POST • Wittenberg “heartless” • “…arrogance embodied by NYRR.” • Called for Wittenberg’s resignation from NYRR

15. Financial impact • NYRR • Didn’t have to give out any prize money to top finishers. • $1.1 million donated to it’s own charity – “Race to Recover.” • Tax write-off • Still had to pay sponsors and television affiliates. • NEW YORK CITY • 40,000 of 47,500 runners, and their guests, were already in NYC at time of cancellation. • Still spent money on hotels, food, entertainment. • Added to volunteer manpower, saving NYC money.

16. DISCUSSION • HOME IS WHERE THE HEART IS An event’s home is it’s lifeblood. It is where the event and it’s affiliates find support, strength, and financial help. If the location is in any way compromised, the reality of the situation is that the event cannot go on as planned.If the event can go on, it needs to be organized with the help of the locations inhabitants and primary stakeholders. Without location support, the event cannot be successful.

17. DISCUSSION • UNDERSTAND YOUR STAKEHOLDERS People who live in New York City have a deep, extreme love of their home. It’s one of the traits that sets locals apart from tourists. Mary Wittenberg and New York Road Runners failed to recognize that most of the people in New York City didn’t care about the marathon – they cared about their city. Wittenberg ran the marathon like a business instead of an integral part of an entire city. By putting the marathon ahead of the city’s inhabitants, she caused an extreme drop in NYRR’s reputation.

18. DISCUSSION • TIMELY AND HONEST RESPONSE • Instead of having behind-the-scenes meetings and being absent from the public eye for an extended amount of time, an immediate response to the situation or crisis presents the stakeholder as a primary priority. • A timely response can also immediately start the diffusion of the crisis. One of the first steps of any crisis situation is to address your stakeholders. A timely response ensures that the first step is taken and the crisis management plan can continue to move forward. • An honest response shows the stakeholders that the organization or business can be trusted. Even negative (albeit, non-damaging) information can have a positive outcome, as it shows that the organization or business cares about it’s stakeholders and wants them to have every possible piece of information.

19. DISCUSSION • REBUILDING POSTURE AND BOLSTERING POSTURE • Rebuilding • Compensation – Providing money or gifts to victims & stakeholders • Apology – taking responsibility for crisis and asking forgiveness. • Bolstering • Reminding – reminds stakeholders of past positive actions • Ingratiation – praising of stakeholders • Victimage – relates organization’s experience to that of the stakeholders’.

20. QUESTIONS • How would you have changed NYRR’s first response after the hurricane? • Who were NYRR’s primary stakeholders? Who were the city’s primary stakeholders? Did they have any of the same? • Do you think Mayor Bloomberg responded appropriately? • How would a public, highly visible volunteer aid appearance by Wittenberg have helped her reputation?

21. QUESTIONS • Besides the attribution theory, what other ways did New York City’s inhabitants respond to NYRR? How did they respond to city officials? • What was the role of social media in this crisis? How did it help or hurt NYRR? • What can NYRR do to help their reputation as they try to move forward? • If you were in Wittenberg’s situation, what would you have done?