★ The Sports Examiner: Chronicling the key competitive, economic and political forces shaping elite sport and the Olympic Movement.★
★ To get the daily Sports Examiner Recap by e-mail: sign up here! ★
≡ METRO-LA28 MEMO ≡
A long-referred-to, but only-now-seen Memorandum of Understanding between the LA28 organizing committee and the Los Angeles Metropolitan Transportation Authority has surfaced on the agenda for the Metro Executive Management Committee meeting on Thursday, 19 March.
In the 15-page document, the financial responsibilities of the two parties are spelled out quite clearly in terms of function:
● Metro will continue to provide and is responsible for, “[t]he level and range of Metro public transportation services customarily provided by Metro were the 2028 Games not occurring,” as of 1 July 2028.
● As for added or “enhanced” services for the 2028 Games period:
“Metro Enhanced Services will be funded, if at all, from supplemental grants and awards and/or any cost savings derived from regulatory relief that Metro receives, and/or other new value to Metro pursuant to this Metro MOU (collectively, ‘New Consideration’).
“Notwithstanding any other provision of this Metro MOU to the contrary, whether expressly or by implication, Metro shall not be obligated for any Metro Enhanced Services, in full or in part, unless and until sufficient New Consideration is designated, dedicated or committed to Metro.
“Without limiting the foregoing, to whatever extent that there is insufficient New Consideration to fully support Metro Enhanced Services, the Parties shall collaborate in good faith to mutually agree upon potential service adjustments to preserve performance of Metro Enhanced Services and to the maximum extent commercially reasonable Metro shall perform a pro rata portion of the Metro Enhanced Services commensurate with the actual New Consideration.”
LA28 expects Metro to provide spectator transportation services for the Games, which can also be used by the LA28 staff (volunteer, paid and contractors). But whatever those services is going to be, it will have to come from someone other than Metro or LA28. Same for attendant security costs.
Both entities are lobbying the Federal government for transportation funding; the amount sought was originally $3.2 billion, but considerably less now as the number of buses expected to be needed has come down from 2,700 to 1,747 as of January, with 834 donated buses currently for donation or loan to the agency.
The MOU specifies that costs for such services to be paid by users – spectators and possibly workforce – will be determined later.
Metro did make an important concession to LA28 regarding its bus and rail advertising inventory, on the interior and exterior of buses and rail cars, and at stations and stops:
● “Metro agrees to make system media inventory locally available for sale to LA28, IOC, and/or their respective sponsors for that priority option period from June 30, 2026, through July 1, 2027. It is not required that sponsors or LA28 buy all available inventory.”
● “Metro agrees not to sell advertising assets to brands that compete with the 2028 Olympic and Paralympic Games sponsors during the Games period from June 12, 2028, through September 4, 2028. LA28 shall work in good faith to work with Metro and its media operators to update them on sponsor competitor sensitivities as new partners are on board.”
The agreement envisions an LA28-operated “marketplace” to sell Metro’s ad spaces, but there is no agreement that all of Metro’s advertising spaces be purchased, or that existing advertisers be protected.
Additional detail in exhibits are pending; a complete “statement of work” by Metro is due by 30 June 2026, a marketing and licensing deal is due by 30 October 2026 and the “Games Security Plan” by 31 December 2027.
The agenda item for Thursday’s meeting asks for the approval of the Memorandum of Understanding as drafted and without the exhibits.
Observed: The MOU as presented maintains the expected stance of both LA28 and Metro on funding, that is, Metro will provide service to the extent it receives Federal funding. More information on the Federal budget for the 2026-27 fiscal year is expected by the end of the month.
Metro’s agreement on its advertising inventory contains no guarantees as to sales – a possible risk – but does offer direct presentation by LA28 to Olympic and Paralympic sponsors, with no cap on pricing and no added commissions, a possible benefit.
¶
★ Receive our exclusive, weekday TSX Recap by e-mail by clicking here.
★ Sign up a friend to receive the TSX Recap by clicking here.
★ Please consider a donation here to keep this site going.
For our updated, 45-sport, 910-event International Sports Calendar for 2026 and beyond, by date and by sport, click here!
