The elite of the world are going to hold a sporting event in Los Angeles in 2028—called the Olympics. It is a sporting event to show how good an athletic competing is—and how much money the money and connected can steal from the people of California.
“A fiscal impact study estimated that the city would lose more than $12 million by hosting Olympic beach volleyball. On the other hand, by not hosting the events and simply welcoming visitors to its beaches and businesses, the city could gain $10.65 million during the Games.
After calculating the costs, Santa Monica asked LA28 for more assistance, the answer was no, and the talks ended.
The Games don’t look any better for the city of Los Angeles, already staring down the barrel of a nearly $1 billion deficit for the upcoming fiscal year. L.A.’s grandiose officials pledged a $270 million financial guarantee to LA28 in case revenue isn’t enough to cover expenses.
The state of California has also pledged $270 million if LA28 comes up short. The spending was authorized by Assembly Bill 132, signed by Gov. Jerry Brown in 2017. However, the law says the state won’t pay anything until L.A.’s $270 million has been exhausted, and even then, the state will pay only certain debts owed by LA28. Cities such as Santa Monica would not necessarily see any of that money, leaving local taxpayers on the hook.”
L.A. Has a one billion dollar deficit—and growing. It does not have $270 million to waste on sporting events. The State does not have $270 million—it has a real deficit in the tens of billions—and growing. We are already in a DOOM LOOP, this will be the final blow to a dead city.
How badly will taxpayers be fleeced to prop up the 2028 Olympics?
By Susan Shelley, Orange County Register, 4/12/25 https://www.ocregister.com/2025/04/12/how-badly-will-taxpayers-be-fleeced-to-prop-up-the-2028-olympics/
The city of Santa Monica proudly claims the title of “birthplace of competitive beach volleyball” but will not host Olympic beach volleyball in 2028.
Nearly two years of negotiations between Santa Monica and the Los Angeles Organizing Committee for the 2028 Olympic and Paralympic Games, known as LA28, have just ended. The parties were unable to reach a “Venue City Games Agreement.”
Before you ask why, you should see what hosting Olympic events can do to a city budget.
Many cities have already seen it. In September 2017, the International Olympic Committee had to award the 2024 and 2028 Games to Paris and Los Angeles because they were the only two cities still bidding.
The full extent of the risks, costs and burdens placed on a city that is the site of even one Olympic venue was made clear in a Santa Monica city staff report last fall. The “Games Agreement” required the city “to provide customary and enhanced municipal services, venue logistics, strict enforcement of the City’s vendor ordinances, and prevent unauthorized trademark infringement and ambush marketing, among other duties.” But the Olympic committee will provide reimbursement to the city only “for certain services and economic losses, assuming LA28 has revenues available.”
Have you heard the joke about how economists get out of a deep hole? “Assume a ladder.”
The Olympic committee refused to guarantee that the Santa Monica Pier would be “fully operational,” because that “would be determined in future negotiations with LA28.” The city staff also noted issues with “restrictions on revenue generating opportunities for the City, and other potential financial and legal risks.”
A fiscal impact study estimated that the city would lose more than $12 million by hosting Olympic beach volleyball. On the other hand, by not hosting the events and simply welcoming visitors to its beaches and businesses, the city could gain $10.65 million during the Games.
After calculating the costs, Santa Monica asked LA28 for more assistance, the answer was no, and the talks ended.
The Games don’t look any better for the city of Los Angeles, already staring down the barrel of a nearly $1 billion deficit for the upcoming fiscal year. L.A.’s grandiose officials pledged a $270 million financial guarantee to LA28 in case revenue isn’t enough to cover expenses.
The state of California has also pledged $270 million if LA28 comes up short. The spending was authorized by Assembly Bill 132, signed by Gov. Jerry Brown in 2017. However, the law says the state won’t pay anything until L.A.’s $270 million has been exhausted, and even then the state will pay only certain debts owed by LA28. Cities such as Santa Monica would not necessarily see any of that money, leaving local taxpayers on the hook.
The Santa Monica city staff report also noted that LA28’s estimated budget for the Summer Games is now $7 billion, so the financial guarantees of $540 million “should not be considered sufficient contingency nor relied upon for reimbursement owed to the City.”
Fair warning to the taxpayers of every city that will host Olympic events in 2028: the costs are high, the reimbursements are uncertain, the “guarantees” are laughable, the demands are open-ended and you may even end up paying damages to LA28 if your city can’t prevent the sale of unauthorized merchandise.
This week, the Orange County Register reported that LA28 “has yet to secure a contract to use the Honda Center as the venue to host the Olympic indoor volleyball competition.” Anaheim taxpayers can only cross their fingers and hope they don’t, which is what Huntington Beach taxpayers should be doing now that LA28 has started talks with city officials there about hosting beach volleyball.
In Los Angeles, there may be no end to Olympics spending. Because of the Games, the City Council just voted to move forward with a $2.2 billion expansion of the Los Angeles Convention Center despite a decade of declining to fund the costly project. The plan is to take on debt, do “phased” construction and hope more money appears. The High-Speed Rail Authority could sue them for copyright infringement.
Speaking of sinkholes, the state legislature is considering a proposal to fund urban transit systems with a tax on tickets to sporting events. Assembly Bill 1237 would impose a $5 “fee” on every ticket purchased for a World Cup or Olympic event in L.A. County. The money would go to Metro, the physically unsafe and fiscally unsound public transit system that saw its ridership peak in the 1980s.
Paying the mandatory ticket fee would entitle the holder to ride Metro at no additional cost on the day of the event, but ticket buyers who used other transportation would not get a refund of the fee. AB 1237 was recently amended to add a similar charge to event tickets in Santa Clara County, with the revenue going to the Santa Clara Valley Transportation Authority.
Metro and VTA could simply sell $5 transit passes, but that risks exposing the fact that most people will go to any lengths to avoid taking public transit. The government doesn’t want them to have that option. As the bill analysis for the Assembly Transportation Committee explains, “the state’s goal to reach carbon neutrality by 2045” depends on “reducing the amount people drive.”
No one will be taking Metro to the softball or canoe slalom events, because LA28 has contracted with venues in Oklahoma City for those competitions. They say they’re keeping costs down by avoiding the need for construction of new facilities.
According to a report by KOSU radio, Oklahoma City had to agree to provide security, emergency services, transit and sanitation, to pay for any modifications needed to comply with the Americans with Disabilities Act, to prioritize “sustainability” practices, and to pay more than $34 million if it backs out of the deal.
It sure looks like LA28 is trying to throw a big party while shifting massive costs to the taxpayers. Congratulations to the cities that don’t fall for it.
