Devine Racing Agrees To Sell L.A. Marathon To Local Media Execs
Devine Racing (DR) has agreed to sell the L.A. Marathon to L.A.-based Del Ray Management Partner & Managing Dir David Kingsdale and former AVP Vice Chair Russ Pillar, according to a source and a copy of the prospectus the duo are circulating to potential investors in their bid cited by Daniel Kaplan of SPORTSBUSINESS JOURNAL. The sale of the race "would continue a move into road racing by professional investors who are seeking to build media and sponsorship businesses." The prospectus indicates that the race's EBITDA in '07 hit $1.5M, and sources said that Devine Racing is "asking for six to eight times" that amount, which would "put the price between [$9-12M]." A source said that Devine Racing in '04 paid $10M for the event, though company Owner Chris Devine has "publicly said that he paid $15[M]." Kaplan notes Kingsdale and Pillar have an "exclusive window to try to close the deal, but if they don’t, Devine would be left with the race, which, despite its location in the country’s second-largest market, took in less than $5[M] in revenue" for this year's March 2 event (SPORTSBUSINESS JOURNAL, 6/2 issue).
RUNNING START: Devine yesterday "acknowledged publicly for the first time that the local race is on the sales block." Devine: "Something definitive will get done in the next couple of days. It will allow us to clean up the balance sheets." Devine declined to identify a prospective buyer, but said that he "hoped to complete 'a high, double-digit, multi-million dollar sales process." Devine noted the sale "may include the L.A. Marathon." In L.A., Greg Johnson notes N.Y.-based investment firm Falconhead Capital LLC earlier this year "looked at a possible acquisition of the L.A. race but did not make an offer." Meanwhile, Dallas-based U.S. Road Sports & Entertainment Group, which in January acquired the ING Miami Marathon, yesterday said in a release it "would have a deep and sincere interest in being involved in one of the great franchises in running if the opportunity presented itself" (L.A. TIMES, 6/3).
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