The LA 2024 committee, after their official declaration as the American selection, released their proposed budget for the 2024 Olympic Games bid. The Committee claims that the budget is both realistic and achievable. They are anticipating that 61% of their revenue will be from sponsorships, followed by an additional 24% coming from ticketing revenue.
Even though Casey Wasserman, CEO of Wasserman Media Group and one of leaders of the LA Olympic bid, has stated that 85% of the venues needed to host the Olympics are already in place, building both an Olympic Stadium and Competitive Venues will eat up a significant chunk of their proposed expenditures. Ultimately, the proposed budget anticipates a $161 million dollar surplus, even after taking into account a $400 million contingency in the budget.
Olympic games in the past have been criticized for the great financial strain they place on the host city. Ultimately, it is the city that is responsible for any cost over-runs. This responsibility can be hard for a city to come back from. For example, according to the L.A. Times, Montreal incurred an additional $1.5 billion in debt after the 1976 Games; a debt that took the city 30 years to pay off. LA 2024 supporters argue that since the city has hosted two profitrable Games in the past (1932, 1984), they are poised to be able to do so again.
|REVENUE DESCRIPTION||OCOG Rev||% of Rev|
|IOC Contribution (Broadcast of TOP Sponsorships)||$1,500.0||31%|
|Sports Ticketing Revenue – Olympics||$1,153.9||24%|
|Torch Run, Coins/Stamps||$226.6||5%|
|Sports Ticketing Revenue – Paralympics||$90.0||2%|
|Disposal of Assets||$40.0||1%|
|Private Naming Rights (Temporary + Permanent)||$25.0||1%|
|Cultural Ticketing Revenue||$10.0||0%|
|IBC / MPC||$130.0||TBD|
|Competitive venues (excl. stadium)||$713.0||$275.0|
|Non Competitive venues||$17.0||$0.0|
|Venue Rental Costs – all venues||$50.0|
|Games time enhanced services||$15.0|
|Games Services including Sport||$326.3|
|Elite Athlete Performance||TBD|
|USOC Share of JV Net Revenue||$386.0|
|Other JV Expenses||$175.0|
|TOTAL COSTS (Incl. contingency and insurance)||$4,666.3|