I'm going to post one of the comments for the RW article from an actual prize winner - Cody Olin Schmidt :
"I was the 2nd place finisher in the Men's 5k run, and consequently received both a $900 check and the call from Nichols nearly a month later. I would like to share my experience to provide a little more perspective on this story.
Two of my roommates and myself decided to sign up for the race after seeing how much money was advertised for the top 3 finishers in each race. We made the 8 hour drive the night before the race, and got ready to compete.
The event itself was great: the novelty of racing on the San Diego beach was a fun, unique experience, and the level of competition that showed up was impressive for a previously low-caliber race. Booths, music, and swarms of friendly runners set a great mood for the event.
After finishing the race, we were awarded our medals and jumped in the water to cool down. The main stage played reggae and guided those interested through some yoga. Some time after, there was an awards ceremony to highlight the top 3 male and female finishers of each race. Upon being called onto the stage, we were handed large novelty checks with our names, the race we completed, our place, and the advertised prize money for our respective place/race. The ceremony ended with photos and applause, and people slowly started to head out.
The top finishers were instructed to email Nichols with a completed W-9 form and proper identification in order to receive the prize money. I emailed my form, and recieved my check in early November.
Nearly a month later, I received a voicemail from Nicohls asking me to give him a call. I called him back later that night, and was met with an apologetic voice. Nichols said that he was sorry and embarrassed to make the call, and eventually filled me in on the problem:
BN • "You know that $900 check we sent you? Well, unfortunately we were only supposed to send you $450"
CS • "What do you mean? On your website it clearly states that 2nd place should receive $900-"
BN • "-Between the male and female finisher. If you look at the site it says we are giving out $15,000 in prizes, and if you do the math you can see that if we gave out the listed prizes to BOTH the male and female finishers, we would be $9500 over"
At this point, I felt a little cheated and got upset.
CS • "You can't expect people to add up the values, the wording suggests we would receive what you've sent us. Besides, you had us on your stage, taking pictures of us holding big novelty checks with the same amounted received"
BN • "Well Cody, we made a mistake, and people that can't forgive others for making mistakes live sad lives-"
CS • "- I can't just give you back $450 out of the blue- I cashed that check nearly a month ago and I live nearly paycheck to paycheck. That's a lot of money for me- I can't just give it back"
BN • "We aren't some corporate monsters expecting you to write us a check for $450 right now, we can do a payment plan and find something that works for you"
CS • "I don't know Bob- I totally understand your position and realize it was a mistake, but I want to think about this for a couple days and talk to a few people about it before sending you back the money-"
At this point Nichols reminded me of the work that his non-profit does, how much they help the community, and how the money will go to a greater cause. I stated again that I wanted to think about it longer before giving him an answer. This, however, provoked Nichols:
BN • "You know Cody, I've tried to be nice and I came to you humbly and apologetic, but you should know I can get pretty nasty too. A few times I've had to bring in our lawyer and settle things off the phone, but we don't want to have to go that route"
At this point, I was shocked at how threatening Nichols became. The conversation got heated as I defended my position and Nichols defended his. It eventually devolved into a pissing match where neither of our characters were anything close to admirable. This is where Nichols got his quote of me saying "the elite athletes are what make this event worthwhile", but he failed to mention that I said this in defense AFTER his: "You know Cody, you and the other athletes holding out just don't get it. You guys aren't worth anything to us - we don't make money from you guys! It's the women pushing the strollers and the kids in the sand that bring in the money- and that's what this is about, money".
I hung up the phone in anger, and took a few moments to think and decompress. I eventually decided to text Bob:
CS • "Bob, sorry things got heated. That's why I repeatedly asked for my own time to think things through. As I said, I will think it over and give you a response within 4 days. If I decide to return the money, what is the longest repayment schedule you can offer me?"
BN • "No worries Cody, I apologize for this mishap. I really appreciate you getting back to me, it says a lot about your character. What would work best for you. I understand your struggle to make ends meet and I appreciate your honesty. Your gonna do great in life."
I decided to speak with a few of the other athletes that received prize money to see if they got a similar call. I called Matt, and he too said he recently got off a heated phone call with Nicohls. Still a little outraged by Nichols behavior, we contacted other athletes to decide what to do.
Most of us decided to stop all communication with Nichols until we needed to make a move. We received a few other emails repeating the logistics of the mistake, the need to collect the extra money, and the constant reminder that the threat of court is always an option. After holding out for a few more weeks as the Letsrun thread (above) started to blow up, Nichols left me a message saying to keep the money and that he no longer wanted to deal with the issue.
I loved the meet, and would love to have the chance to compete again. I think Nichols made an honest mistake, but the way he handled everything was extremely unprofessional and unnecessarily stressful for both parties. "People make mistakes, and those that can't forgive will live sad lives". Hopefully, Bob, you can forgive me for keeping the advertised money and sharing my story. Hopefully in the future you won't pin the blame and reponsibility of your actions on those that participated your event."