LOS ANGELES (CN) – The city of Los Angeles will host the 2028 Summer Olympics and Paralympics, and a new budget summary released by the local organizing committee Tuesday says the games will cost nearly $7 billion to put on.
A 2017 estimate pegged the cost of hosting the games at approximately $5.3 billion.
The latest budget rundown was released by the nonprofit organizing committee LA 2028 and will be presented to the Los Angeles City Council next month. The report was evaluated by global accounting firm KPMG.
In a statement, LA 2028 chairperson Casey Wasserman said, “Our budget is privately funded, realistic and fiscally conservative. We are redefining what it means to host a successful games and look forward to planning and hosting an amazing experience that will make our community proud.”
The new estimate of $6.9 billion adjusts for inflation over the 11-year time span to real dollars for expenses and revenues. That includes $160 million earmarked for youth sports throughout the city leading up to the games, which will go to maintaining facilities and staff. Los Angeles received that money from the International Olympic Committee after local organizers agreed give up a bid for the 2024 games and instead opt for 2028.
According to LA 2028, the games will break even with revenue generated from ticket sales, hospitality, and licensing, but Los Angeles Recreation and Parks recently announced the city will need to generate close to $900 million over the next decade to sustain its recreation centers for those youth programs.
Los Angeles has hosted the Summer Games twice – in 1932 and again in 1984.
Existing stadiums, training facilities and venues that have hosted previous events include the Rose Bowl in Pasadena, Long Beach Convention Center and the nation’s only Olympic-standard velodrome in Carson, south of downtown Los Angeles.
Closing and opening ceremonies for the 2028 Summer Games will take place at the Los Angeles Memorial Coliseum and the Los Angeles Rams stadium.
Meanwhile, Los Angeles Mayor Eric Garcetti announced the Twenty-Eight by ’28 plan, a laundry list of transportation projects that include pedestrian, bicycle and road construction and improvements to existing bus and rail lines.
Previously, voter-approved sales taxes were going to help pay for speeding up some of the project deadlines. But a report released last year shows the Los Angeles County Metropolitan Transportation Authority will need to raise about $26 billion in order to meet Garcetti’s goal.
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