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Cash influx ahead: LA to host 2028 Olympics

Los Angeles will host 2028 Olympics (credit: Getty Images)
Los Angeles will host 2028 Olympics (credit: Getty Images)

The Olympic flame will light up Los Angeles in 2028.

Paris and L.A. had been the final contenders to host the games in 2024, but in mid-July, the International Olympic Committee [IOC] voted to decide on the host cities for both 2024 and 2028 at once. Once L.A. showed a willingness to host the 2028 games, a deal was struck, according to Reuters.

The L.A. 2024 Olympic committee estimated that it would cost the city $5.3 billion to host the games, and but added that revenue from sponsorships and ticket sales would cover all of its expenses.

The IOC, which promised $1.7 billion to Paris’ 2024 games, will contribute at least $2 billion of its broadcast and sponsorship revenue to Los Angeles in order to defray the costs of hosting the games, the Los Angeles Times reported.

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It has also agreed to grant Los Angeles a $180 million advance, which will help to cover the organizing committee’s costs for operating an extra four years, in addition to funding youth sports in the city.

L.A.’s Olympic committee has said that the financial risk to the city would be minimized by using venues already in operation, like the UCLA and USC dormitories, which would house athletes.

Also, sites for the games that are currently under construction, such as the Inglewood football stadium, are expected to be completed well before 2028. The stadium is due to be finished by 2020.

The city’s bid also included a $487.6 million contingency for any cost overruns. The contingency would convert to a surplus if the games finish at or under budget and the IOC agreed to waive its 20 percent fee on any surplus L.A. may have.

The International Olympic Committee will make the decision official in a vote on September 13th in Lima, Peru. Los Angeles, Paris and London are the only cities in the world that have been designated as Olympic hosts three times.[Reuters] – Subrina Hudson

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