AIDSRide Organizer Lays Off Employees

Pallotta TeamWorks, the Los Angeles-based for-profit event promoter that staged lavish and emotional fundraisers on the Washington Mall and in cities across the country, has suspended operations amid a falloff in donations, rifts with sponsors and questions about excessive overhead costs. Pallotta laid off its more than 250 employees Friday. Company spokesperson Janna Sidley said the layoffs were intended to save money and ensure that three breast cancer walks Pallotta is working with in October would be held as planned. Some employees may be rehired.

In the past ten years, Pallotta events have drawn 124,000 participants and netted $222 million for AIDS and breast cancer charities, according to the company Website. Yet in recent years, Pallotta benefits have attracted increasing scrutiny and criticism. Every trek features an elaborate caravan of food, tents and support services that pushed expenses to 40 cents of every $1 donated. And in the past year, Pallotta events have seen a drop-off in participation and contributions. This year's Washington AIDSRide, from Norfolk to the Mall, drew about 2,000 riders, compared with more than 3,000 in 2001.

This year, two District-based AIDS charities announced they were severing their longtime ties with Pallotta to pursue their own fundraising activities. Officials with the Whitman-Walker Clinic said in May that they planned to focus more on seeking corporate donors. Food & Friends, meanwhile, plans to stage its own bike ride next summer. "[Pallotta] gave us a start in something we intend to continue and improve upon," said Food & Friends Executive Director Craig Shniderman said. "We paid for a lot of meals with those Pallotta-produced rides." The events brought the organization $7.5 million over seven years. But he said Food & Friends felt that Pallotta had grown too big too fast, and that a more efficient event could be produced with local management. "We want a greater focus on the AIDS epidemic," Shniderman said, noting that in recent years, he felt the event was too focused on cycling.

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