Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

L.A. won't lose money if awarded 2024 Games: officials

Published 12/02/2016, 01:30 PM
Updated 12/02/2016, 01:40 PM
© Reuters. File photo of the city of Los Angeles, California is pictured on a hot summer day next to the San Gabriel mountains

© Reuters. File photo of the city of Los Angeles, California is pictured on a hot summer day next to the San Gabriel mountains

(Reuters) - Los Angeles 2024 Olympic bid officials unveiled a "no surprises" $5.3 billion balanced budget on Friday, boasting they will not need money to build any new permanent venues.

The bid committee, which is up against Paris and Budapest for the right to host the summer Games, said in a statement its budget includes a $491.9 million contingency in case costs escalate.

An Olympic village that already exists, no new permanent competition or non-competition venues needed specifically for the Games and previously approved funding for the airport and transit that was not related to the Olympics all helped to keep costs down, officials said in a statement.

The largest expenditure in the budget is $1.1 billion for Olympic venue overlay, upgrades to existing facilities and temporary venue construction.

In all, the projected $5.3 billion cost of hosting the Games is less than half the roughly $12 billion Brazil spent on the Rio Games in August.

Budget overruns can saddle host cities with a legacy of debt and unused facilities. But Los Angeles' history - the 1984 Olympics ran a $93 million surplus that still helps to fund youth athletic programmes - makes its officials more confident.

"Our Games Plan offers stability and minimal risk to the City and the Olympic Movement," LA 2024 Chairman Casey Wasserman said in a statement.

"Like the organizers of the LA 1984 Games, we believe we have a responsibility and a tremendous opportunity to put forward a plan that will serve Los Angeles and the Olympic Movement long after the Games are over in 2024."

According to the budget, LA 2024's revenue will be driven by domestic sponsorship and activation ($1.93 billion), ticketing ($1.47 billion) and IOC contributions from its international broadcasting ($855 million).

The IOC will select the host next September.

LA24's unveiling of their modest plan comes as the IOC urges organisers of the 2020 Tokyo Summer Games to trim a budget that was threatening to climb to $26.36 billion.

© Reuters. File photo of the city of Los Angeles, California is pictured on a hot summer day next to the San Gabriel mountains

At an open meeting for a four-party working group that includes the IOC on Tuesday, Tokyo 2020 organizers vowed to keep costs below $20 billion but the Olympic authority felt even that amount was too high.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.