(ATR) Organizers of the 2028 Olympics and Paralympics in Los Angeles say that the financial plan for the Games remains a low risk proposition.
The latest forecast of revenue and expenses for LA 2028 released today shows no substantial change from its original plans as a bid city for 2024, and then the 2028 Games.
In an ideal world, LA 2028 will cost $6.8 billion to stage, covered to the penny by the same amount of revenue.
Originally a bid for the 2024 Olympics and Paralympics, Los Angeles and rival Paris both agreed to a proposal from the IOC to award 2024 to France, 2028 to the U.S. The dual-award for a summer Games was a first for the IOC.
The budget released today is the first substantial iteration of the ledger for 2028 since the IOC decision 18 months ago. The figures were submitted for an independent review by KPMG in January.
"Adjusted for inflation, LA 2028’s real dollar budget is directly in line with the budget proposed for the 2024 Games bid, plus three percent (approximately $200 million) that includes a $160 million investment in local youth sports and four additional years of operation," says a release from LA 2028.
As part of the agreement with Los Angeles to defer hosting the Olympics until 2028, the IOC will direct $200 million in sponsorship revenue to LA in advance of the Games. The bulk of that money is to be spent on youth sport.
Absent from the LA financial plan is a budget for venue construction. No permanent facilities will be built and no public infrastructure projects are needed for the 2028 Games.
The budget includes a $611 million contingency that will go to sports legacy should there be a post-Games surplus.
"Our budget is privately funded, realistic and fiscally conservative," says LA 2028 Chair Casey Wasserman.
"We are redefining what it means to host a successful Games and look forward to planning and hosting an amazing experience that will make our community proud," Wasserman said.
By comparison to other Olympics on the horizon, LA appears to be holding the line on costs, especially in the realm of construction.
The Tokyo 2020 Games budget, covering the same expenses as LA is about $5.6 billion. But an additional $7 billion is going into construction and other infrastructure needs. Paris 2024 is likely to spend in excess of $7 billion, a number that includes construction of an Olympic Village. LA will use existing housing on the campus of UCLA for its village.
REVENUE $M USD (Real $)
1. International Olympic Committee Contribution 898.0
2a. IOC TOP Sponsorship Program 437.0
2b. Additional Projected IOC TOP Renewal Revenue 200.0
3. Domestic Sponsorship 2,517.7
4. Ticket Sales & Hospitality 1,928.8
5. Licensing & Merchandising 304.9
6. Other Revenues 597.8
Total Revenues 6,884.2
EXPENSES $M USD (Real $)
1. Venue Infrastructure 1,463.7
2. Sport, Games Services & Operations 1,228.7
3. Technology 626.5
4. People Management 913.4
5. Ceremonies 245.0
6. Communications, Marketing & Look 397.3
7. Corporate Administration & Legacy 587.1
8. Other Expenses 806.7
9. Contingency 615.9
Total Expenses 6,884.2
Reported by Ed Hula.
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