Los Angeles could receive at least (USD)$1.8 billion funding from the International Olympic Committee (IOC) to host the 2028 Olympic and Paralympic Games, a newly drawn host city contract reveals. That number could exceed $2 billion when considering existing sponsorship agreements and marketing deals.
Los Angeles will retain any operating surplus it earns from hosting the Games – according to the Los Angeles Times the IOC has waved its usual 20 per cent claim to any potential surplus. The 1984 Olympic Games earned a surplus that was converted to a valuable sport legacy for the city that is still in place today.
The IOC will advance $180 million of these funds in the form of an interest-free loan, immediately to an LA 2028 organizing committee to cover the costs of operating four years in advance of the typical seven-year period, and to immediately provide as much as $160 million to fund youth sport in the city.
Los Angeles Mayor Eric Garcetti has made it known that funding for youth sport in his city has been a goal in the negotiating process with the IOC, which led to an agreement to be announced Monday that LA will concede the 2024 race to Paris in order to host instead in 2028.
Paris would receive $1.7 billion as its broadcast and sponsorship share for hosting the 2024 Games.
The 2024 edition of the LA Games has a projected budget of about $5.3 billion including a $487.6 million contingency fund.
An LA 2024 statement Monday confirmed that LA, Paris 2024 and the IOC have been negotiating since April beginning at the SportAccord Convention is Aarhus, Denmark. The talks set the stage for the IOC members to vote to approve the 2024/2028 double-allocation earlier this month.
The LA City Council and the United States Olympic Committee (USOC) will discuss the agreement next month and if approved, a tripartite agreement by LA, Paris and the IOC can move forward ahead a September 13 IOC vote to rubber-stamp the decisions.
Originally five cities, including Hamburg, Rome and Budapest, entered the race for 2024 but only LA and Paris remained after the others dropped out due to fears of cost over runs.
Los Angeles Mayor Eric Garcetti said “this is an historic day for Los Angeles, for the United States and for the Olympic and Paralympic Movements around the world. Today, we take a major step toward bringing the Games back to our city for the first time in a generation and begin a new chapter in Los Angeles’ timeless Olympic story.
“This agreement with the IOC will allow us to seed a legacy of hope and opportunity that will lift up every community in Los Angeles– not in 11 years’ time, but starting now and continuing in the years leading up to the Games. LA 2028 will kick-start our drive to make LA the healthiest city in America, by making youth sports more affordable and accessible than ever before.”
LA hosted the Games previously in 1932 and 1984.
IOC President Thomas Bach said “the IOC welcomes this decision of the Los Angeles Olympic and Paralympic bid committee.”
“They presented a strong and enthusiastic candidature that embraces the Olympic Agenda 2020 sustainability priorities by incorporating existing facilities and encouraging the engagement of more youth in the Olympic Movement.
“Therefore, we are very happy that as part of this Host City Contract, we are able to expand the impact of city youth sports programming and encourage the healthy lifestyle of Angelenos for the next 11 years.
“We are very confident that we can reach a tripartite agreement under the leadership of the IOC with LA and Paris in August, creating a win-win-win situation for all three partners. This agreement will be put forward to the IOC Session in Lima in September for ratification.”
USOC Chairman Larry Probst said “today was an important step in the process to bring the Olympic and Paralympic Games back to the United States. In the coming weeks, we look forward to presenting this to the USOC board for approval of Los Angeles’ 2028 candidature in anticipation of a positive vote by the IOC membership in September. LA 2028 will help connect the Olympic Movement with the youth of the world and provide the IOC with long-term stability and sustainability, and demonstrate the viability of hosting the Games to future bidders.”
Mayor Eric Garcetti along with City Council President Herb Wesson are expected to publicly announce the agreement in a Facebook livestream 5:00pm Monday local LA Time.
More to come…