The LA 2024 committee, after their official declaration as the American selection, released their proposed budget for the 2024 Olympic Games bid. The Committee claims that the budget is both realistic and achievable. They are anticipating that 61% of their revenue will be from sponsorships, followed by an additional 24% coming from ticketing revenue.
Even though Casey Wasserman, CEO of Wasserman Media Group and one of leaders of the LA Olympic bid, has stated that 85% of the venues needed to host the Olympics are already in place, building both an Olympic Stadium and Competitive Venues will eat up a significant chunk of their proposed expenditures. Ultimately, the proposed budget anticipates a $161 million dollar surplus, even after taking into account a $400 million contingency in the budget.
Olympic games in the past have been criticized for the great financial strain they place on the host city. Ultimately, it is the city that is responsible for any cost over-runs. This responsibility can be hard for a city to come back from. For example, according to the L.A. Times, Montreal incurred an additional $1.5 billion in debt after the 1976 Games; a debt that took the city 30 years to pay off. LA 2024 supporters argue that since the city has hosted two profitrable Games in the past (1932, 1984), they are poised to be able to do so again.
| REVENUE DESCRIPTION | OCOG Rev | % of Rev |
|---|---|---|
| IOC Contribution (Broadcast of TOP Sponsorships) | $1,500.0 | 31% |
| Domestic Sponsorships | $1,437.2 | 30% |
| Sports Ticketing Revenue – Olympics | $1,153.9 | 24% |
| Torch Run, Coins/Stamps | $226.6 | 5% |
| Licensing | $159.7 | 3% |
| Donations | $100.0 | 2% |
| Sports Ticketing Revenue – Paralympics | $90.0 | 2% |
| Lottery Licensing | $75.0 | 2% |
| Disposal of Assets | $40.0 | 1% |
| Private Naming Rights (Temporary + Permanent) | $25.0 | 1% |
| Cultural Ticketing Revenue | $10.0 | 0% |
| Secondary Ticketing | $10.0 | 0% |
| Subsidies | TBD | 0% |
| TOTAL REVENUE | $4,827.3 | 100% |
| COST DESCRIPTION | OCOG | NON-OCOG |
|---|---|---|
| Venue Costs | ||
| Village | $75.0 | $925.0 |
| Olympic Stadium | $300.0 | $500.0 |
| IBC / MPC | $130.0 | TBD |
| Competitive venues (excl. stadium) | $713.0 | $275.0 |
| Non Competitive venues | $17.0 | $0.0 |
| Venue Operations | ||
| Venue Rental Costs – all venues | $50.0 | |
| Games time enhanced services | $15.0 | |
| Utilities consumption | $15.0 | |
| Key Services | ||
| Technology | $412.0 | |
| Games Services including Sport | $326.3 | |
| Workforce | $424.9 | |
| Support Services | $702.0 | |
| Ceremonies | $150.0 | |
| City Operations | $200.0 | |
| Facilites Maintenance | $25.0 | |
| Elite Athlete Performance | TBD | |
| USOC Share of JV Net Revenue | $386.0 | |
| Other JV Expenses | $175.0 | |
| TOTAL COSTS | $4,116.2 | $1,700.0 |
| Contingency | $400.0 | |
| Insurance Premium | $150.0 | |
| TOTAL COSTS (Incl. contingency and insurance) | $4,666.3 | |
| NET POSITION | $161.1 |
There is no doubt Barcelona enjoyed a renaissance and thrived as a destination city after the 1992 Games. Sydney same in 2000. The Olympics do a lot for some cities. LA won’t go in a third rate city and come out a first rate one, it is a first rate city that will administer a great Olympiad. Perfect weather and setting for the 2024 Games. Paris the same. Both are fantastic candidates.
I don’t care where they go but no games will produce a profit .
All cities of the modern age have been successful before the Olympics ( who is why they got them ) . Barcelona was an architectural jewel of Europe but battered by the Spanish civil war & deliberately neglected by Franco . True the Olympics rejuvenated Barcelona as part of Spanish emerging from 40 years of fascism . Of course now Catalonia wants independence . Cannot stop moving forward !
For LA – the village precinct has not been chosen & nowhere near bought & zoned& planned .So we are still missing the centre & focus . This is what held Boston back – the… Read more »
Note the full security costs have been ‘gifted ‘ to the U.S. Taxpayer .via the federal government . Imagine the costs of ICE rounding up every alien & shipping them out under a Prez Trump .
The blurb only mentions secret services , fema & the FBI but there is also mammoth DC entities to be fed eg DHS , EPA , DOJ – all of who have multiplied by 50 since 84 .
There is no evidence that Olympic Games bring a nation any benefits . Regions can be infrastructures up though Atlanta only has MARTA .
Salt Lake City had services worth 800 million channelled to it ,but those were extreme times .