Running News Daily

Some Veteran Pro Runners Are Making Less This Year, and They're Ditching the Sport

Many athletes are confronting a bleak financial reality. Some are quitting the sport entirely.

What do Noah Droddy, Ben True, and Andy Bayer have in common?

They’re all ranked among the top 10 Americans of all time in their events—Droddy in the marathon, True in the 10,000 meters, Bayer in the steeplechase.

How Much Do Pro Runners Make? For Some Veterans, It’s Less This Year

And they were all dropped by their sponsors at the end of 2020.

This news took a while to seep out—after all, athletes don’t tend to publicize it when their sponsors reduce their pay or stop supporting them altogether. But Droddy, 30, and True, 35, have been open about their status and confirmed it in calls with Runner’s World (both had been sponsored by Saucony), and Bayer told the Indy Star that Nike dropped him and he has left the sport, at age 31, for a job in software engineering.

Droddy—one of running’s most recognizable figures in races with his long hair, backward baseball cap, and habit of losing his lunch at marathon finish lines—summed up his situation in a tweet on February 19.

Is he right? Is it typical for top runners, at the height of their careers, to lose financial backing from shoe companies? Or is this an anomaly at the end of an unusual, pandemic-marred 15 months?

Runner’s World had conversations with eight athletes, four agents, two marketing employees at brands, and three coaches to get a sense of the current economics for athletes. They painted a complex picture.

Are most pro runners broke?

Many are just getting by. For years, America’s pro runners have been on shaky financial footing. With the exception of those who win global medals or major marathons, distance runners often struggle to earn enough money to pay for their essentials (rent and food), plus cover all their running-related expenses, such as coaching, travel to races and altitude camps, health care, gym membership, and massage.

Over the past year, the pandemic has erased lucrative racing opportunities. Additionally, shoe companies have been reevaluating their sports marketing budgets, from which runners are paid. Experts say that the result has been an increasing bifurcation between the sport’s haves and have nots.

The most successful, those destined for the Olympic team or starring on the roads, are earning generous base payments and bonuses for setting records or winning. Many of the rest are scraping by, with smaller contracts, if any, and they’re supplementing their shoe company earnings with jobs.

Running’s middle class, much like America’s, is shrinking.

The exception is runners who belong to a single-sponsor training group, like those in Flagstaff, Arizona (Hoka); Boston (New Balance); and Portland, Oregon (Nike). In those cases, coaching, travel, and training camp costs are absorbed by the club, easing the financial pressure on athletes and making it possible for them to pursue the dream.

Brands these days appear to be more eager to devote dollars to groups and the athletes who train with them, rather than individual athletes training on their own in different locations. That presents a quandary for midcareer runners who have achieved a level of success. Faced with the loss of a sponsorship, they aren’t always willing to pick up and move to a new town and a new coach.

What do contracts look like?

If you’re a top runner in the college ranks, and you’ve won multiple NCAA titles at the Division I level, shoe companies—Nike, Adidas, Brooks, Saucony, Hoka, and others—will usually come calling, offering more than $100,000 a year for multiple years, with a spot in a group or a stipend to pay your coach. Those companies are betting on those NCAA champions to be Olympians of the future.

Dani Jones, for instance, won three individual NCAA titles at the University of Colorado, and she signed with New Balance at the end of last year. Her agent, Hawi Keflezighi, said she entertained competing offers from other companies.

A midcareer athlete with a breakthrough performance—hitting the podium at a major marathon or making an Olympic team, for instance—might also be rewarded with a base contract worth $50,000 to $100,000.

The top sprinters earn even more (although their careers are typically shorter). Usain Bolt famously made millions, and Canadian sprinter Andre De Grasse was 21 when he signed a deal worth $11.25 million—before bonuses—from Puma in 2015, the Toronto Star reported.

The payouts drop significantly after that. Let’s say you’re a distance runner, but you haven’t been able to get a big win in college, although you’ve come close. The lucky ones are looking at deals for about $30,000 to $75,000 per year.

Your agent takes a 15 percent cut of that. And this base salary most often comes without benefits: no health insurance, no 401(k). As independent contractors, pro runners are paying all their own taxes. (In contrast, traditional full-time employees have half of their Social Security and Medicare taxes paid by the employer.)

Many young runners out of college join pro groups, and they’re not making anything beyond free gear and coaching. Others might get a stipend worth $10,000 or $12,000 a year.

The contracts typically sync with the Olympic calendar. At the end of 2020, many athletes’ contracts were expiring—even though the Olympics didn’t happen. That’s how Droddy, True, and Bayer were dropped. Shannon Rowbury, a three-time Olympian, told Track & Field News her deal with Nike was extended for one year, two if she makes the Olympic team this summer.

If an athlete has a good Olympics, the sponsoring company often has an option to extend the deal for an additional year, which includes the world track & field championships. It’s at the company’s discretion—not the athlete’s.

Parts of the sponsorship model appear to be changing, but slowly. When NAZ Elite announced a new deal with Hoka last fall, it included health insurance for the runners. Similarly, members of Hansons-Brooks in Rochester, Michigan, get health insurance if they work in the Hansons running specialty stores. And last May, Tracksmith brought Mary Cain and Nick Willis on as employees at the company—Cain in community engagement, Willis as athlete experience manager—with the plan that both would continue to train and race at an elite level.

Why doesn’t anyone know exactly how much runners are making?

As part of these deals, athletes have to sign non-disclosure agreements (NDAs), promising to keep the terms quiet. If an athlete violates the NDA, the sponsor can void the contract—or sue for breach of contract.

This is, in fact, similar to other sports. In basketball, LeBron James is being paid $39.2 million this season by the Los Angeles Lakers. But he also has an endorsement deal with Nike, and the exact structure of that is unknown.

In running, prize purses are publicized—$150,000 for winning the Boston Marathon, $25,000 for being the top American at New York in 2019, $75,000 for winning the Olympic Marathon Trials.

But as in other sports, the terms of the sponsor deals are kept mum. And appearance fees at major races, as well as time bonuses within those appearance fees, which represent a major source of income for road runners (mainly marathoners), are also mostly unknown.

Athletes feel that the silence around sponsor contracts and appearance fees puts them at a disadvantage—it’s hard to know their market value. Yes, they can—and do—have quiet conversations with peers about it. But lacking broad knowledge, they lack power.

And as a result, the industry is rife with rumors and assumptions. Athletes’ values are often inflated through the grapevine.

“I think it is very similar to the dynamic that would occur if no one knew the price of home sales,” Ian Dobson—a 2008 Olympian who ran for Adidas and Nike during his pro career, which ended in 2012—told Runner’s World. “How could you ever be confident in a sale price if you didn’t know what any other homes in your neighborhood were selling for? Granted, we don’t know every detail of every home sale in the neighborhood, but it’s certainly helpful to know in general terms the dollar amount that these are going for so that we can all understand what value our home might have.”

Also, athletes keep quiet when their circumstances change. They feel embarrassed. One athlete told Runner’s World, “No one in track wants to be the one to say, ‘I got dropped,’ or ‘I got reduced.’ It's all taboo.”

Even so, $30,000 is nothing to sneeze at—especially for a job that’s about pursuing individual goals.

No, it’s not. But not every contract is structured the same way.

Some pay that base amount, no matter what. Other contracts penalize athletes with reductions if, for instance, they don’t finish in the top three in the country in Track & Field News rankings, or if they get injured and can’t race a certain number of times per year.

That’s why numerous Nike athletes seemed to be eagerly seeking racing opportunities of any kind last summer amid the pandemic. Marathoner Amy Cragg raced a 400 meters at an intrasquad meet on July 31, and finished in 90.15 seconds—6:00 pace—presumably to check a box on her contract. On August 7, she ran 800 meters in 3:03.85. The record of those races are in her World Athletics profile.

A Nike spokeswoman, when asked about athletes racing in 2020 to meet contractual obligations, responded: “We do not comment on athlete contracts.”

Time bonuses, once seen as a reliable way to beef up athletes’ base payments, are also becoming less frequent or harder to hit, as shoe technology improves and fast times become more common, according to one agent.

What role do agents play?

For athletes who have never previously had a sponsorship deal, it’s almost impossible to secure one without the help of an agent, who can get in the door at all the major brands.

For American distance runners, there are nine main agents—all men—negotiating the deals (Keflezighi, Josh Cox, Paul Doyle, Ray Flynn, Chris Layne, Dan Lilot, Tom Ratcliffe, Ricky Simms, and Mark Wetmore). Karen Locke, one of the few female agents in track and field, represents a few distance runners among her roster of clients in field events.

Of course, all the prominent agents—who have multiple clients across multiple brands and at various stages of their athletic careers—have data about what athletes are worth. But they have a duty to each one to maintain confidentiality about the specifics of that deal.

Agents bring to their athletes a broad picture of the market and what each might command, providing advice to those considering offers: Yes, this a fair offer, a solid deal. Or no, you can do better.

They also help get athletes into competitive track races like the Diamond League and elsewhere, or into the World Marathon Majors. They can handle travel arrangements to meets and help to make sure records get ratified. Generally, their role is to go to bat for athletes, no matter what they need.

For their services, they take 15 percent of everything an athlete earns: sponsor deals, appearance fees, and prize money, no matter how small the race or winnings.

Agents are supposed to negotiate on behalf of each client individually, but athletes have no idea if that’s happening. Are they being used as part of a package deal? Thrown in at a minimal rate as a thank you to a brand for giving a generous deal to a superstar? Or, on the upside, getting a small appearance fee from a major marathon that they wouldn’t be able to get into on their own, because they have the same agent as a mega-star?

“Agents want to bring in the most money for their combined athletes—if they manage 20 athletes, they’re trying to bring in the maximum money they can across 20 athletes,” one athlete told Runner’s World. “That doesn’t necessarily mean they’re trying to maximize for each individual. The difference between earning $20,000 a year and $30,000 a year is profound in terms of your ability to actually train as a professional. But it translates into a small amount [$1,500] for the agent.”

Why is the market tricky right now?

The pandemic caused upheaval in marketing budgets. Also, the people who work in marketing at shoe brands can be inexperienced in the running industry, and turnover often runs high at those positions, jeopardizing relationships between athletes and brands that have lasted years.

The marketing budget questions are not limited to running, said Matt Powell, a sports business analyst and vice president for NPD.

“I think brands are taking a more circumspect view of endorsement contracts in general—whether it’s teams, leagues, or individual athletes,” he said. “They’re [questioning whether] they’re getting the return on that investment.”

Nike is rumored to have cut its marketing budget for running, amid layoffs at the company. Nike did not return an email from Runner’s World seeking clarification on the budget or the numbers of runners it currently sponsors.

Although Nike’s superstars are said to be fine and not facing any reductions in their deals, one Nike athlete, a 2016 Olympian, told Runner’s World, “It’s pretty much assumed that everyone is getting less.”

And it’s believed that several of these contracts are for shorter periods of time than they might have otherwise been: through the world championships in 2022 in Eugene, Oregon, instead of through the next Olympics in 2024.

In answer to questions from Runner’s World about True and Droddy—as well as rumors about a new Saucony-sponsored training group—Saucony responded with an emailed statement from Fábio Tambosi, Saucony’s chief marketing officer:

“At Saucony we believe you cannot have a sports brand without the inclusion and authentic connection with athletes. We are excited about the evolution of Sports Marketing as a brand pillar for years to come, and remain committed to building an athlete strategy that aligns with this goal.” 


Good news abounds, too

On the positive side for distance runners, Puma has re-entered the distance running market. Molly Seidel was lured from Saucony to Puma, and Aisha Praught Leer told Women’s Running she signed a “big girl contract” with Puma. Additionally, the company started a group in North Carolina, coached by Alistair Cragg and with three athletes so far.

The shoe company On has also invested heavily, starting a new team in Boulder, Colorado, coached by Dathan Ritzenhein and with athletes like Joe Klecker and Leah Falland.

Keira D’Amato, 36, signed her first pro contract, with Nike, after a string of impressive performances during the pandemic on the track and roads. She has kept her job as a realtor.

Keflezighi sees an opening for apparel brands that don’t have footwear to sponsor more athletes. Women’s apparel company Oiselle has done this for years, and Athleta is now sponsoring Allyson Felix. Could a menswear company be far behind? These arrangements leave athletes free to choose their own running shoes, which can be advantageous as shoe technology advances so quickly.

Why do brands have pro runners anyway?

Beyond the individual dollar amounts in contracts, brands seem to be rethinking what the role of a professional athlete is. Is it to inspire with performances, and hope those performances translate into shoe sales? Or is it to connect with fans on social media and promote product sales that way?

“You have to kind of look at it big picture,” True told Runner’s World. “These companies aren’t giving athletes money for charity; they’re doing it for a marketing investment and they’re looking for a return on their investment. And currently—and this is not ideal, in my mind—you look at the rise of social media and influencers. They are very inexpensive for marketers to go after and they get their products in front of a lot of eyeballs.”

A 2:20 male marathoner who also has a drone and a great Instagram account or YouTube channel might be gaining followers, True said, while a 2:05 marathoner is training hard and devoting his craft toward the next race.

“The average person, they don’t understand that 15-minute difference,” he said. “One historically will cost that company a lot of money. The other does not cost much at all and will get a whole lot more eyeballs on the product. You have to understand that.”

In his nine years with Saucony, True, training on his own in Hanover, New Hampshire, was part of only one ad campaign the company ran. The company preferred to use models for its ads and catalogs.

In February, True ran 27:14 for 10,000 meters, a personal best and faster than the Olympic standard. He wore Nike spikes and a plain yellow singlet. If all goes according to plan, he’ll race the U.S. Olympic Track and Field Trials in June and try to make his first team. His wife, professional triathlete Sarah True, is pregnant and due in July. And after that, he’ll run a fall marathon. True intended to debut at the marathon last fall, before the pandemic canceled all the races.

He’s moving ahead and training hard, despite the financial uncertainty. “I would have loved to have spent my entire career with Saucony,” he said. “I very much enjoyed working with them. I’ve been fortunate enough that I have had probably a lot more support than many other people in my position. That’s been nice.”

At this point, he is hoping another company will pick him up to take him through the next few years. “If a company just gave me a bonus structure that is fair for the result, I’d be happy with that,” he said. “It’s not like we’re looking for huge amounts of money. I’m very pragmatic and very realistic. I don’t think you should be paid for potential; I think you should be paid for results.”

(06/13/2021) Views: 5,560 ⚡AMP
by Runner’s World