Concerns Over Financial Risks of the 2028 Los Angeles Olympics

Los Angeles City Councilmember Monica Rodriguez has raised alarms regarding the financial implications of hosting the 2028 Summer Olympics, warning that the city could face bankruptcy if a solid agreement with the organizing committee, LA28, is not established. The city has been portrayed as a financial backstop for the Games, meaning that if the organizing committee incurs losses, Los Angeles and the state of California will be responsible for covering the expenses. Rodriguez emphasized the urgency of finalizing an agreement that outlines the reimbursement for city services, including policing and traffic control, which is currently over six months overdue.

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A significant concern is the funding for security during the Olympics. The federal government has allocated $1 billion for security expenses, with the Secret Service overseeing planning. However, city officials, including City Attorney Hydee Feldstein Soto, have expressed doubts about whether this funding will adequately cover Los Angeles' extraordinary costs. The LA28 budget, which totals $7.1 billion, does not account for security spending, raising questions about who will bear the financial burden if federal funding falls short. Rodriguez noted that the city could be left with substantial expenses even if the Games generate a profit.

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In her correspondence with LA28 CEO Reynold Hoover, Rodriguez stated, "Every dollar owed to the City must be reconciled and paid before any surplus is retained or repurposed." She cautioned that "bankruptcy cannot be the legacy of these Games." Similarly, Feldstein Soto highlighted the need for clear language in the agreement to ensure that any surplus funds do not benefit the wealthy investors of LA28 without first reimbursing the city for its costs.

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Critics of the current arrangement argue that the financial risks associated with hosting the Olympics have not been adequately addressed. Both Rodriguez and Feldstein Soto have pointed out the potential for Los Angeles to incur significant debt even if the Games are financially successful. This scenario raises concerns about the long-term fiscal health of the city and the implications for taxpayers.

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The Los Angeles City Council's ad-hoc committee on the Olympic Games is scheduled to meet next Tuesday for the first time since January. This meeting will be crucial in addressing the financial agreements and ensuring that the city is protected from potential financial fallout as the Games approach.

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• “Every dollar owed to the City must be reconciled and paid before any surplus is retained or repurposed,” — Monica Rodriguez, City Councilmember

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• “The City requires unambiguous language in the [agreement] to foreclose any scenario in which funds might go back to the wealthy backers and investors of the LA28 organization without reimbursing taxpayer-funded extraordinary costs,” — Hydee Feldstein Soto, City Attorney

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