Big big money.
The cost of holding the 2028 Summer Olympics in Los Angeles is rising. It seems the LA Olympics organizers are not worried about sinking money into the gala sports gathering. The event that is still nine years away will cost around $6.9 billion instead of the original estimate of $5.6 billion. The LA Committee has just adjusted its numbers from the original 2016 cost projections when it was going after the 2024 Summer Olympics. Both local and state government officials have committed public money to help out the Los Angeles Committee. The total at the moment is a half billion dollars. What is the Olympics worth to Los Angeles? In 2017, Beacon Economics and the Riverside School of Business Center for Economic Forecasting and Development at the University of California have released a study claiming that a Los Angeles Olympics is going to create big bucks for both Los Angeles and the United States. Los Angeles’ economic output could increase by $11.2 billion and the US would get $18.3 billion in economic benefits. The study also concluded that somewhere between 75 and 80,000 jobs would be created by the Olympics.
“There is little doubt that hosting the Olympics is an enormous boost for a local economy, both in the short term as driven by activity surrounding the events themselves, and in the long term given how these events raise the global profile of the region,” Christopher Thornberg, founding partner of Beacon Economics, said. “The worry is always that these benefits come at too high a cost but because Los Angeles already has many of the assets needed for a successful Olympic experience the upside is far greater than it would be for many other cities who would be hosting for the first time.” The Olympics event is a money loser. Very few cities want it because of that reason.