Micah Ma, Governor of California, Gavin Newsom, Janet Evans, Chief Athlete Officer, LA28, Los Angeles Mayor Karen Bass, Delani Shanell, and LA28 President and LA28 President and President KC Wassmanman comes as LA on August 12, 2024, Los Angeles, California.
Emma McIntire | Getty Image Entertainment | Getty images
Los Angeles made a rare achievement in 1984: The city gave a benefit on the Summer Olympics. It seems that it may not be easy in 2028. And it can come on a bad time for the city.
“The City of La, financially, we are in trouble,” Controller Kenneth Mejia recently wrote in a letter to Mayor Karen Bass and Municipal Council. Low revenue and higher spending adds $ 140 million reduction for the current financial year and an additional reduction of $ 73 million next year for $ 140 million.
Los angeles is “Overseas” by $ 300 millionMeeja wrote. A top budget budget officer in the city has recently estimated that Budget shortage can reach $ 1 billion In its next financial year. Last week, state MPs made another request $ 1.9 billion In funding, after receiving $ 2.5 billion, to help the city’s recovery efforts from the January wildfire.
LA28, private, non-profit company organizing 2028 games, is one Budget of $ 6.9 billion Funded by corporate sponsorship, licensing agreements and a significant contribution from the International Olympic Committee. The budget includes athletic arenas, the cost of personnel, as well as renting housing athletes.
But if the Olympic budget is not added at all according to the Mathematics plan, then taxpayers can be paid the bill share, and the LA and its Olympic committee are aware of the risks of overrolling cost estimates. In 2019, LA28 budget was extended By $ 1.36 billion. If LA28 budget Still not proved enough, Los Angeles will be responsible for the next $ 270 million in funding. After that, the state government of California will be responsible for the next $ 270 million – with the next $ 270 million, there will be LA’s financial burden again.
Olympic host cities have a long history of financial failure
If Recent history Any indicator, it is appropriate to worry that 2028 Summer Olympic sports will move on the budget. In the host cities of the last 60 years, almost no one has been profitable or on the budget.
The budget increased by 90% after spending more than $ 5 billion at the 2000 Sydney Olympic Games in Australia. The 2004 Athens Olympic Games increased by more than 50% than the budget, which increased to more than $ 3 billion, which was caused by growing and increasing debt. 2016 Summer Olympic Games Cost Rio de Janeiro A reported $ 20 billion. The Olympics have been so oriented that when London broke with the 2012 Summer Games, it was judged by some people to succeed.
Miles Osgood, a professor of Stanford University and the Olympic researcher, says that LA organizers have drawn on lessons since 1984, making responsible budget plans, which is located on the financial gains of sports to the city, compared to other recent host cities. In 1984, La is planning to use sites and structures that already exist, which saves on new constructions related costs. Use of existing places Hope to save More than $ 150 million.
But over Profit of $ 200 million Los Angeles said that last time it hosted the Games in 1984, which was done in very different circumstances compared to today. In particular, sports are very large in size. La will host 36 Olympic Games in 2028, instead of 21. In 1984, there were there 221 events and 6,829 athletes. In 2028, there will be there 800 incidents with 15,000 athletes. A large number of related costs (eg security, transport, employees, rooms in the Olympic village) “said Osgood,” Osgood “out of those original figures.
The city was home to the important anti -opposing Olympic spirit that the Wildfier presented an unexpected financial and infrastructure challenge for the LA. Osgood said that Los Angeles is central for “noolimpics” campaign, A movement Along with other things, with the lack of local democracy in housing crisis and sports plans. This has demanded to highlight the bad deals that always make the hosts while welcoming the Olympics, and the group has been vocal about the 2028 games since the wildfire.
Despite criticism, LA is confident that the games will be made successful. Paul Crackorian, Chairman of Los Angeles City Council, recently Told New York Times“I believe that the 2028 games will benefit Los Angeles for the coming generations equally.”
Tim Clayton – Corbis | Corbis Sport | Getty images
For many residents still pick up the pieces of life after the loss of the house, the distinctive feeling related to the hosts for the Olympics cannot occupy its mood in a way of traditional pride. “In 2028, when the entire neighborhood can still clean the ash, the Olympic flame is not going to a welcome symbol,” said Osgood. He said, “You can easily imagine how La’s Olympic slogan, ‘follow the sun,’ rent, as the protesters make calls, instead, to follow the money,” he said.
In mid -January, Wildfier displaced thousands of California residents 18,000 structures were destroyed,
It is estimated that the cost of recent forest fire will be About $ 40 billion In insured loss.
From the point of view of the infrastructure, the wildfire should not be an issue. None of the 2028 Olympic places set for the hosts was damaged by fire. The UCLA, which has been designed to serve as athletes in the Olympic village, became unheard. Experts say it is still likely to be a site for many athletes participating in 2028 sports.
But Meeja recently said that the fiscal stress of the city cannot come in a worse time due to the forest fire. He said, “We have gone from the record level of the General Fund Reserve 18 months ago, which is officially on the verge of need to declare ‘fiscal emergency’,” he said. “The couple on the budget comes at the top of the increasing responsibilities for the preparation of the Olympic and Paralympic Games in 2028.”
While the wildfire is not an unusual phenomenon in California, the measure of destruction of homes, trade and public infrastructure is usually significantly higher than the experiences of the LA region, according to Matthew Burbank, Professor of the University of Utah, who has worked on a large scale on Olympic urban policy.
It may take several years to rebuild Los Angeles, but Berbank said that he does not expect a wildfire to have a direct impact on the Olympics plan, or at present any funds have been placed for sports to be rejected for wildfire relief from Olympics. He said, “More likely, the city’s approach to the budget for more than the cost will have to expect that they are not there, and if they do, the city will have to find out how to pay those costs,” he said.
But he said that the overall impact of an attempt to rebuild a multi-year wildfire on public financial situation has not been ruled out.
He said, “The state and local government budgets may have a permanent impact that will be moving 2028 and beyond,” he said.
Disclosure: CNBC parents are owned by NBCUNIVERSAL NBC Sports and NBC Olympics. NBC is the US broadcast rights holder for all summer and winter games through Olympics 2032.
