The 2028 Summer Olympics, officially referred to as the Games of the XXXIV Olympiad and commonly known as Los Angeles 2028 or LA28, is an upcoming international multi-sport event set to take place from July 14 to July 30, 2028, in the United States. Los Angeles will serve as the primary Olympics host city, with various competitions also planned in other locations throughout the Greater Los Angeles area, as well as two additional venues in Oklahoma City.
Initially, Los Angeles had submitted a bid to host the 2024 Summer Olympics. However, following several withdrawals that left only Los Angeles and Paris in the running, the International Olympic Committee (IOC) established a process to award both the 2024 and 2028 Summer Olympics to these two candidates. Paris expressed a preference for hosting the 2024 Games, leading Los Angeles to agree to take on the role of host for the 2028 event.
But now, the experts are warning that the 2028 Summer Olympics in Los Angeles, USA, will cost considerably more than planned and can turn into a financial pitfall for the city.
Over the course of the past 60 years, no Olympics host city has typically made a profit and stayed under budget. Examples of costs exceeding expectations include the 2000 Sydney Olympics, which were 90% over budget, with costs exceeding $5 billion, and the 2004 Athens Olympics, which were 50% over budget, totaling $3 billion.
The 2016 Rio de Janeiro Olympics cost $20 billion, turning out to be so unprofitable that the 2012 London Olympics were actually considered a success in comparison.
Los Angeles Olympics organizers have built on the 1984 experience to create a budget plan that gives the city a financial advantage. They plan to use existing venues and facilities, saving more than $150 million on new construction.
However, the more than $200 million in profits that Los Angeles made in 1984 was made in a very different environment than today. In 2028, there will be 36 Olympic sports, 800 events, and 15,000 athletes, increasing the associated costs of security, transportation, and other aspects of the organization.
LA28, the private non-profit entity funded by a combination of corporate sponsorships, licensing agreements, and a significant contribution from the International Olympic Committee, responsible for organizing the 2028 Olympic Games, has established a budget of $6.9 billion, which is supported by corporate sponsorships, licensing deals, and a contribution from the International Olympic Committee.
LA28 intends to conduct a “no-build” Olympics, emphasizing the use of existing facilities and minimizing new construction. The city plans to utilize current venues such as SoFi Stadium, Staples Center, Pauley Pavilion, the Coliseum, and the Rose Bowl, thereby reducing the necessity for new developments.
Officials from Los Angeles and California legislators have agreed to act as a financial safety net, indicating that taxpayers may be liable for any costs that surpass the $6.9 billion budget.
The city and state have committed to covering any potential budget overruns, with the city accountable for the initial $270 million, the state for the subsequent $270 million, and then Los Angeles again for any additional excess costs.
Los Angeles is currently facing a projected budget deficit, and recent wildfires have exacerbated the city’s financial difficulties, potentially reallocating resources away from Olympic preparations.
Additionally, anti-Olympic sentiment has been prevalent in Los Angeles even before the wildfires became a financial and infrastructure issue. The city has become the center of the NOlympics campaign, a movement concerned with the housing crisis and the lack of local say in planning the event. The group has been vocal in its opposition to the 2028 Olympics, especially in light of the recent wildfires.