Marathon Struggling to Pay Bills : Running: Orange County event promoter has not paid all suppliers, consultants. Many top runners have not received their prizes.

Orange County Marathon Inc., promoter of the inaugural Goodyear Orange County Marathon, has been unable to pay off many of its suppliers, consultants and top runners who won prize money in the event last Nov. 3.

Kent Bowen, Orange County Marathon Inc. chairman and founder, said the company intends to pay the debts with private funds and money raised through 1992 corporate sponsorships. But the financial delays have clouded the opinions of many who were involved with the 1991 race, which organizers hoped would be the first step toward a world-class marathon.

Among those who say they are still awaiting payment:

--Steve Scott, American record-holder in the mile and three-time Olympian, who was hired to promote a five-kilometer run held in conjunction with the marathon. He said he has not been paid $1,000 owed him--$500 for promotional work, $500 for winning the 5K--and that he would not lend his name to the event in the future.

--Michael Marckx, who resigned as race director Dec. 26 because he said he had not been paid commissions owed him and because he had “philosophical differences” with the organizers.

--A number of prize-winning runners, including Cindy James of Homewood, Ill., who finished second in the women’s race and expected $4,000. She said she called the OCM Newport Beach office several times but still hasn’t received any money. Rich McCandless, the third-place men’s finisher from Hayward, said he is still owed $6,000.

--The City of Santa Ana, which has yet to receive the $20,000 owed for off-duty police officers used for traffic control. The 26.2-mile race wound through Anaheim, Santa Ana, Orange, Costa Mesa, Tustin and Irvine. Bowen said he thought most of the cities would eventually waive money owed them. But Lt. Felix Osuna, Santa Ana’s traffic commander, said he didn’t consider that likely. “Not to the cost of taxpayers,” he said.

Vince O’Boyle, UC Irvine track and field and cross-country coach and a member of the marathon advisory board, said the financial problems “embarrassed” him.

“It’s an embarrassment when I’m on the board and my name is used,” O’Boyle said. “It bothers me that athletes with great names like Steve Scott are promised money and not paid.”

Marathon officials admit they overextended themselves but said that everyone will be paid as soon as possible. Explanatory letters and, in a few cases, partial payments have been sent to creditors and prize-winning competitors.

“In today’s economy,” begins one letter, “it is clear to us at Orange County Marathon Inc. there are difficulties that lie ahead for all businesses. . . . These tough times have not spared Orange County Marathon Inc.”

Said Bowen: “We have people on payment programs. Like a lot of other businesses right now, we’re (having cash-flow problems), but we’re going forward. . . . This is not a cheap event (to stage).”

While the marathon had a number of sponsors, sources familiar with the sponsorships said much support came in the form of goods and services instead of cash. Among them:

--Title sponsor Goodyear offered the use of its blimp for television coverage, promotional items such as banners and hats and money for trophies, according to a company official who asked that he not be named. He said the total worth was about $150,000, very little of it in cash.

--BMW awarded automobiles worth approximately $21,500 each to both the men’s and women’s winners and donated another model, worth approximately $55,000, for a charity raffle.

--USAir awarded approximately $20,000 worth of airline ticket vouchers for prizes.

--The Times Orange County Edition provided several free advertisements.

Bowen would not say how much cash was received.

The Goodyear spokesman said the company was unaware the marathon was having financial trouble. He said the company was reviewing the event’s promotional information for 1992.

Asked if Goodyear might help bail the marathon out of its 1991 debts, he said: “Our agreement for 1991 is complete as far as we’re concerned. We’ve done what we’re going to do.”

Marckx, who has helped promote several large events, including the Ironman Triathlon in Hawaii, said he resigned as race director because of his belief that the organization was mismanaged. Marathon officials say Marckx is a disgruntled ex-employee who in fact owes OCM $3,000, which Marckx denies.

“It was my decision to quit, it wasn’t based on financial retribution, it was the ethical dealings with other people,” Marckx said. “I was put in the position to lie and cheat. This is my neighborhood. This is my back yard. (Being a race director) is what I want to do with my life. The top 10 guys? I knew half of them. I was the one who said, ‘You’re going to get paid--I promise you.’ And now we’re not paying them. Maybe not for a long time, if ever.”

One such runner was James.

“They told me some of the sponsors backed out at the last minute, and there was nothing they could do,” she said. “Then they sent me a form letter a couple of weeks ago. They said they’d pay me some time this year. I’ve never encountered anything like this. I don’t believe it. I’ve run many big road races . . . it’s never been handled this way.”

James said she and many other competitors who received travel expenses were asked to sign a pre-race agreement promising not to compete in another marathon a month before or after Orange County.

“I thought, boy, there were several other races I had in mind,” she said. “But I chose this one, unfortunately.”

Glen Biener, hired as OCM’s chief financial officer after the 1991 race, said the organization is working on corporate sponsorships for 1992 and hopes to use some of that money to pay off its debts. He said it’s not unusual for an event of this magnitude to run in the red for the first year, or more.

“Naturally, we went over budget, I’m not going to lie,” Biener said. “Our intent is we’re looking at other financing, raising private money. . . . Our intent is to pay off vendors that we owe money to, and anyone else we owe money to, from part of the sponsorship from 1992. But that’s not abnormal.”

Asked if anyone has taken legal action, Biener said there were two lawsuits initiated but they had been resolved.

“Call the New York City Marathon,” Biener said. “Ask them how many lawsuits they get every year.”

Biener says he is confident the event will be held again this fall. The marathon, 5K, food fair and health and fitness expo went well, he says.

But Scott said that under current management, it isn’t worth a repeat performance.

“Orange County deserves a great marathon,” Scott said. “But this one had business people that didn’t know anything about running. . . . I got suckered in as much as the other guy. (The race organization) wasn’t done right, that’s the sad thing. It was an atrocity. The 5K was a complete joke. . . . If you put on an event and can’t pay your bills, something is dramatically wrong.”