Under its agreement with the City of Los Angeles, the Los Angeles 2028 organizing committee was required to submit “An independent review and written report of the proposed OCOG operating budget for the 2028 Games will be completed within 18 months of the OCOG formation …”
That time has come and the LA 2028 organizers released a two-page statement on Tuesday morning that included a summary of the budget that tracks – quite closely – the bid budget figures submitted for Los Angeles’s bid for the 2024 Games in 2017.
The figures are useful from the standpoint that this is the first budget which incorporates the changes from the 2024 to 2028 programs, including substantially more assistance from the International Olympic Committee.
According to the news release:
● Revenues:
$1.535.0 billion (22.3%) ~ International Olympic Committee
$2.517.7 billion (36.6%) ~ Domestic sponsorship
$1.928.8 billion (28.0%) ~ Ticket sales and hospitality
$0.304.9 billion (04.4%) ~ Licensing and merchandising
$0.597.8 billion (08.7%) ~ Other revenues
$6.884.2 billion total vs. $5.325.1 billion in 2016 dollars for 2024
● Expenses:
$1.463.7 billion (21.3%) ~ Venues
$1.228.7 billion (17.8%) ~ Games Services & Operations
$0.626.5 billion (09.1%) ~ Technology
$0.913.4 billion (13.3%) ~ People
$0.245.0 billion (03.6%) ~ Ceremonies
$0.397.3 billion (05.8%) ~ Communications, marketing & Look
$0.587.1 billion (08.5%) ~ Corporate Administration
$0.806.7 billion (11.7%) ~ Other expenses
$0.615.9 billion (09.0%) ~ Contingency
$6.884.2 billion total
The contingency is actually 9.8% of the expenses before that amount is figured in, just about the same percentage as in the bid budget for 2024.
The overall total is elevated $1.559.1 billion or 29.1% from the 2024 projections in 2016 dollars, thanks in part to (a) the Games are in 2028, (b) inflation from 2016-19 and (c) another $410.5 million in support from the International Olympic Committee. The expenses include an additional $200 million, with $160 million earmarked for the city youth programs agreed with the IOC and an added $40 million for an extra four years of operations since LA28 received the Games 11 years prior instead of the normal seven.
The percentages of spending are just about the same for this budget as for 2024, with a little more for the IOC’s share and sponsorship on the revenue side and some expense money shifted to staffing and corporate expenses, from venues and operations.
Are the figures trustworthy and instructive? Does it really matter this far out? What is noteworthy is that there are budget figures which are publicly available and can be used as a measuring stick against future budget releases. For now – nine years away from the Games – we have a first look at the financial plan, updated from the 2024 projections.
That’s what counts for now. And if you’d like to help with the licensing and merchandising revenue, you can check out some LA28 gear right now.