Los Angeles city officials are raising concerns over potential financial risks related to hosting the 2028 Summer Olympics, emphasizing the need for a firm agreement to ensure taxpayers are not left footing unexpected bills. As negotiations continue between City Hall and LA28, the private nonprofit organizing the Games, officials are urging for a contract that guarantees the Games will be delivered at no cost to the city.

The total cost of the 2028 Olympics is projected to exceed $7.1 billion, funded through a combination of International Olympic Committee contributions, marketing rights, corporate sponsorships, ticket sales, and licensing revenues. City leaders, including City Attorney Hydee Feldstein Soto and Councilmember Monica Rodriguez, have expressed apprehension about the possibility of budget shortfalls resulting from unforeseen circumstances such as economic downturns, natural disasters, or changes in federal funding. Both officials have called for enforceable assurances that LA28 will cover any expenses beyond initial projections related to policing, transportation, sanitation, and other municipal services during the Games.

Security presents a particular point of concern. The 2028 Olympics have been designated a National Special Security Event, which entails heightened security requirements estimated to potentially cost up to $1 billion, including expenses for the Los Angeles Police Department and County Sheriff’s Department. Although the federal government has pledged $1 billion toward these costs, uncertainty remains about the reliability of this commitment amid possible shifts in federal priorities. City officials worry that any shortfalls could result in the city absorbing substantial unplanned costs.

Negotiators expect to reach a tentative agreement soon, with city leaders emphasizing that a successful partnership hinges on clear responsibilities and financial protections. A significant aspect under discussion involves how any surplus revenues generated by the Games would be allocated, with city officials insisting that taxpayers be reimbursed for extraordinary costs before funds are distributed to organizers or investors.

Adding to the complexity of the ongoing discussions are recent revelations about LA28 Chairman Casey Wasserman’s prior associations with Jeffrey Epstein, which have sparked calls from some quarters for his resignation. While this controversy has yet to significantly impact sponsorship deals or ticket sales, it has heightened scrutiny on the transparency and governance of the organizing committee. The city attorney’s office has underscored the necessity for rigorous audit rights and oversight mechanisms to protect public interests.

Despite these concerns, LA28 representatives maintain their commitment to staging a fiscally responsible Games that will provide long-term benefits for Los Angeles. They highlight ticket sales and corporate partnerships as critical revenue streams intended to mitigate taxpayer exposure. However, many city officials remain cautious, emphasizing that any financial agreement must unequivocally safeguard public funds to prevent taxpayers from bearing the Games’ financial risks.