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≡ INTEL REPORT ≡
A $66.03 million annual loss is not usually the basis for optimism, but a review of the Los Angeles 2028 Olympic & Paralympic Organizing Committee’s Form 990 tax return for 2023 gives an insight into future funding to come.
LA28 has not posted its returns on its Web site, but has included them in its required annual report to the City of Los Angeles, made available in June the following year. So, the posting of its 2023 IRS Form 990 return by ProPublica is a much earlier-than-usual glimpse of the financial status of the LA28 organizers.
(It’s worth noting that the Form 990 information will vary somewhat from the audited financial statements, probably not available until the City’s annual report next year, since the accounting methods differ. But much of the data will be the same.)
For 2023, what would normally be considered fairly dismal results are actually an improvement:
● Revenue was $12.34 million, down from $53.66 million in 2022.
● Expenses were $78.37 million, down from $140.22 million in 2022.
● Losses were $66.03 million, down from $86.56 million in 2022.
● Assets were $141.71 million, up from $65.05 million in 2022.
● Cash and receivables were $74.93 million, up from $56.42 million in 2022.
● Net assets were –$219.69 million, down from –$153.67 million in 2022.
The hidden bright spot was in deferred revenue – income which will be declared later – which went from $180.00 million at the end of 2022 to $280.80 million at the end of 2023. This is sponsorship revenue which is starting to come in, but for accounting purposes, is shown as a liability. The significant increase is a good sign.
There was only $12.34 million in revenue, mostly from donations ($8.00 million), plus a little more than $2 million each in investment income and hospitality sales. LA28 does intend to solicit donations, noting:
“Starting in 2021, the organization began receiving contributions to support its mission of hosting the 2028 Olympic and Paralympic Games. The organization is actively working at developing its strategy for philanthropy and public contributions.”
Spending was $78.37 million, primarily for the 157 staff members:
● $34.74 million for salaries, benefits and payroll taxes
● $16.95 million for other program expenses
● $15.29 million in grants, to the PlayLA youth sports initiative
● $5.41 million in rent, office expenses, insurance and technology
● $2.44 million in rights payments
● $1.53 million for legal, lobbying and accounting services
● $1.02 million in advertising and promotional costs
That’s $77.38 million of the $78.37 total.
The big number of $16.95 million for program expenses is not broken out in the return, but a note on payments to contractors shows that 42 different outside companies received $100,000 or more from LA28 during 2023, led by engineering giant AECOM, which was paid $5.12 million. Security services firm Gavin de Becker & Associates was paid $1.36 million.
LA28 also paid significant amounts to senior staff members who have since stepped down. Former chief executive Kathy Carter was shown with reportable income in 2023 of $1.995 million; former Chief Business Officer Brian Lafemina received $3.12 million, and former Chief Legal Officer Tanja Olano – who left in 2024 – received $1.02 million in 2023.
The return also includes information on the U.S. Olympic & Paralympic Properties (USOPP) joint marketing venture with the U.S. Olympic & Paralympic Committee. Its director, Chris Pepe, retired in 2024; he received $928,358 in 2023.
Seven other employees were paid more than $500,000, nine others were paid more than $200,000; a total of 91 staff were paid more than $100,000. An explanatory entry on the return noted that all executive salaries had been benchmarked by an outside firm and approved by the Board of Directors.
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There are more questions to be asked, but the audited financial statements – whenever they are made available – will answer many of those.
Some perspective is needed on these numbers and the LA28 “net assets” total of –$219.69 million, as LA28 Chair Casey Wasserman – who has served without pay – confirmed to reporters in November that approximately $4.6 billion in revenue has been contracted for LA28 already.
This comes from the International Olympic Committee’s pledge of at least $1.335 billion, and the remainder from contracts with sponsors, hospitality providers and licenses for merchandise sales. Ticket revenues will be on top of that.
So, some money is coming in and much more is on the way. But the exodus of the prior leadership team at LA28 and the USOPP means that it will be up to new chief executive Reynold Hoover and new USOPP head John Slusher to do more with the money they have, and for Slusher to bring in more.
But the costs will be enormous; one example is in staffing. While LA28 reported 157 staff at the end of 2023, Paris 2024’s post-Games report showed 3,020 at the end of the year before its Games (i.e., the end of 2023) and 4,200 at the time of the Games.
Using the same timeline, Hoover & Co. will need to hire 2,863 more people by the end of 2027. On Monday (23rd), the LA28 jobs site showed job openings for 23 positions.
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