For Immediate Release
December 2, 2016
Contact: +1 424-320-4513
Balanced, rigorous and realistic budget reflects low-risk Games Plan with more than 30 existing venues and no new permanent venues required; KPMG set to release independent review of LA 2024 budget later today
Budget: https://dl.dropboxusercontent.com/u/1356850/LA2024Budget.pdf
LOS ANGELES - LA 2024 today released its balanced budget that offers "no surprises" for the City of Los Angeles and the Olympic Movement based on realistic revenue projections and a low-risk Games Concept.
The LA 2024 budget is balanced with $5.3 billion of revenue and cost, leaving a net position of $0 and a contingency of $491.9 million (10.2% of costs). The budget is based on the convergence of favorable conditions in LA today, including:
• An Olympic and Paralympic Village already in place at UCLA’s state-of-the-art campus accommodation.
• More than 30 world-class competition and non-competition venues in place or planned by private investors attracted to the LA market.
• LA's current massive public transportation upgrade that will transform mobility in the city, with $88 billion in ongoing public transit investment, $14 billion modernization of LAX underway, in addition to the $120 billion in transit funding approved by LA County voters in November.
• The strong foundation of a resilient, dynamic and growing state economy which ranks California as the sixth largest in the world.
Together, these conditions mean no Games related public infrastructure, no complex and costly development projects and no new permanent competition or non-competition venues are required to stage the 2024 Games in LA, in alignment with the IOC's Agenda 2020 reform sustainability goals.
This realistic and achievable budget is the product of LA 2024’s rigorous Games Concept planning and close collaboration with the City of Los Angeles; the bid team has been holding budget workshops with City officials for the last six months. The budget is informed and assured through partnerships with the owners of fully operational venues, completed commercial negotiations and real-world financial modeling informed by third-party specialists from the Boston Consulting Group, Broadstone Group, AECOM and financial experts from the London 2012 Organizing Committee.
Finally, the budget was submitted to the ‘Big 4’ accounting firm KPMG, chosen by the City of Los Angeles to independently evaluate LA 2024’s budget. The City will publicly file the KPMG analysis today as part of its commitment to transparency during the bid process.
LA 2024’s largest revenue sources are domestic sponsorship and activation ($1.93 billion), ticketing ($1.47 billion) and IOC contributions from its international broadcasting ($855 million) and TOP sponsorship ($453.5 million) programs. The largest expenditure is $1.1 billion for Olympic venue overlay, upgrades to existing venues, rental agreements and temporary venue construction. No new permanent competition or non-competition venues will be built specifically for the Games.
Mayor of Los Angeles Eric Garcetti said: "The people of Los Angeles and the Olympic family can be assured that the budget we release today reflects accurately the cost of delivering LA 2024’s Plan for a fiscally responsible Games that provides only upsides – economic, social and sporting – for our city and for the Olympic Movement. Instead of mortgaging our futures on unknowable construction costs, our Games will capitalize responsibly on investments that are already transforming our city for the future."
LA 2024 Chairman Casey Wasserman said: "From day one, LA 2024’s budgetary objective has been: ‘no surprises.’ If LA is chosen to host the 2024 Games, the IOC does not have to worry about changing or evolving budgets, shifting competition venues or uncertainty about the delivery of the Games.
"Our Games Plan offers stability and minimal risk to the City and the Olympic Movement. That is what we mean by a ‘New Games for a New Era.’ This is a realistic Plan, with a responsible, realistic budget, that faithfully reflects the IOC’s Olympic Agenda 2020 philosophy: credibility; sustainability; partnership. Like the organizers of the LA 1984 Games, we believe we have a responsibility and a tremendous opportunity to put forward a plan that will serve Los Angeles and the Olympic Movement long after the Games are over in 2024."
LA 2024 CEO Gene Sykes said: "LA 2024’s planning and budgeting has been a fine balance of ensuring the greatest sporting environment possible for the athletes, while delivering the Games in a responsible, low-risk manner for Los Angeles and the Olympic Movement. LA 2024’s budget ensures guaranteed delivery of the Games, a prudent and responsible use of our city’s existing resources and assets, and stability and minimal risk to the IOC and Olympic Movement not just for 2024, but for many years beyond."
IOC Athletes’ Commission Chair and LA 2024 Chief Strategy Officer Angela Ruggiero said: "The Olympic and Paralympic Village has typically been one of the key cost drivers in previous Games, but it will not be for LA 2024. By using the existing state-of-the-art housing, dining and training facilities at UCLA, LA 2024 can simultaneously guarantee an outstanding level of service for the athletes of the world and eliminate a significant drain on Games resources. The facilities and workforce are already in place and already serving 16,000 talented, multi-cultural, multi-lingual residents - most of them students - every day. LA 2024’s Olympic and Paralympic Village will give athletes the best home possible to prepare for the most important moment of their lives with no risk and no uncertainty."
LA 2024's budget has been filed with the City of Los Angeles and will be discussed at the December 9 meeting of the LA City Council ad hoc 2024 Olympic committee.
For more information visit LA24.org.
LA 2024 can also be found on the following social media channels:
Twitter.com/LA2024
Facebook.com/LA2024
Instagram.com/LA2024
YouTube.com/LA2024
Snapchat.com/add/la2024
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