The city of Los Angeles could be on the hook for $270 million if the 2028 Olympics are not on budget. With the city already facing a $1 billion deficit and the state infamous for the ballooning $135 billion budget for its high speed rail program, many wonder if the city can handle the Olympic games.
L.A. famously turned a profit from its 1984 Olympics by minimizing new construction, and has sought to do so for the 2028 games. The latest plan for the “no build” games has moved some events to Oklahoma City — canoe slalom and softball — which could be an attempt to minimize local costs.
L.A. City Controller Kenneth Mejia, who has been warning the city is “broke” since 2024, has pointed out difficulties the city may have in hosting the games, especially compared to Paris, which hosted the game in 2024.
“L.A. is the next Summer Olympics host city. Will we be ready?,” said Mejia on X. “Compared to Paris, Los Angeles has 2x the population, 10x the unsheltered population, 1/10 the transit ridership, ¼ the transit vehicles per million people, 3x the road deaths.”
The city is on the hook for the first $270 million over budget the Olympics costs in excess of the approved $6.9 billion budget, with the state of California — which itself faces annual deficits rising to the tens of billions of dollars — taking the next tranche.
In 2019, then-mayor Eric Garcetti said he expects the city to earn $1 billion in profit from the 2028 games. Not a single Summer Olympics has generated a profit since the 1984 L.A. Olympics, with games typically running billions of dollars over budget.
