In exchange for waiting until ’28 to host the Olympics, LA ’24 leaders secured $180M from the IOC in interest-free cash advances that will defray the organizing committee’s operating costs during the unusually long prep time and be available to fund youth sports programs in the L.A. area. The $180M -- 10% of the minimum the IOC would contribute toward the overall cost of the Games -- is the key aspect of a proposed LA-IOC contract released yesterday. The contract details the special arrangements made for L.A. if it agreed to stand down, paving the way for rival Paris to host in ’24 in a historic combo deal. The USOC and L.A. City Council still must approve the plan before a final IOC vote in September.
The $180M in advances would come in quarterly payments of $9M each for five years, beginning by Jan. 1, 2018, at the latest. This is important, because LA ’28 would exist for 11 years instead of the customary seven, and the IOC contributions don’t normally arrive until close to the Games. Up to $160M of the total IOC contribution would be available for youth sports in L.A., giving Mayor Eric Garcetti something he had publicly sought from the IOC as he floated the idea of waiting four years. The IOC decided to give both Paris and L.A. the Games because it did not think it could afford to alienate either city as demand to host the Games withers elsewhere.
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Other changes include:
- Should the Games generate an operating surplus, the IOC won’t take its usual 20%. The L.A. organizing committee would keep 80%, to be used for “general benefit of sport and youth in the host city,” and the USOC would get 20%. The bid has a $488M contingency built into its current budget, which would become a surplus if not used.
- The IOC will waive various fees that could save the local organizers up to $50M.
- LA ’28 will also have increased flexibility to sell in unoccupied sponsorship categories.
LA ’28 officials staged a public celebration last night at StubHub Center in Carson. “This deal was too good to pass up,” said Garcetti during the event, adding that he would take the '28 deal over the ’24 status quo if given the choice because of the immediate cash advance. LA '28 Chair
Casey Wasserman framed the extra four years as a positive too. “Never before has an organizing committee had 11 years to prepare. Four more years to implement our plan,” he said.
