The obscure 2028 Olympics plan that gives LA’s leaders a blank check to funnel ‘infinite’ amounts of cash into its massive pet project
Los Angeles City Council has approved a controversial agreement that leaves the city financially exposed for a potentially unlimited amount of money if the 2028 Olympics fail to turn a profit. The 10-4 vote, which will now be signed by Mayor Karen Bass, has drawn sharp criticism for offering little oversight of how the private organising committee, LA28, manages and finances the Games, despite past opportunities to build in stronger safeguards.
Under the deal, known as the Enhanced City Resources Master Agreement, LA28 would cover losses of up to $600 million, with the state absorbing a further $270 million, before the city's general fund — money used for basic public services — becomes liable for any remaining shortfall with no cap. Critics, including City Controller Kenneth Mejia, say residents were promised a "zero-cost" Games and warn the arrangement could bankrupt the city, which already faces a $1 billion budget deficit. Concerns are heightened by policing costs, expected to be the single biggest expense: LA28 has allocated no money for security within its $7.1 billion budget, and the police chief estimates personnel costs alone could reach $1.15 billion, far exceeding a $270 million contingency fund that also depends on uncertain access to a $1 billion federal security fund.
- LA council approved a deal exposing the city to unlimited Olympic cost overruns
- Critics say the agreement lacks oversight and could bankrupt the city
- Policing costs alone could dwarf the $270m contingency fund set aside
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LA's bid for the 2028 Olympics was originally sold to residents as a "no-cost" or low-risk Games, in part because much of it relies on existing venues rather than new construction. The actual running of the event falls to LA28, a private, non-profit organising committee that handles fundraising, sponsorship deals and day-to-day planning, separate from the elected city government.
Under the rules of hosting an Olympics, though, the host city itself has to formally guarantee it will cover any financial shortfall if the Games lose money, since organisers like the International Olympic Committee want a public backstop, not just a private one. Los Angeles City Council, the elected body that governs the city, and Mayor Karen Bass, its top elected official, are the ones responsible for agreeing to and signing off on that guarantee on behalf of residents.
This matters because Los Angeles is already dealing with a tight budget, and the city's general fund pays for everyday services such as policing, fire response and rubbish collection. How much financial risk the city takes on for the Olympics, and how closely it can monitor LA28's spending decisions, affects how much money might be available for those basic services in the years around 2028.