A new study by researchers at the Univ. of Oxford suggests that L.A. is "on track for a fiscally responsible Summer Olympics but has much to worry about between now and 2028," according to David Wharton of the L.A. TIMES. It "paints a dire overall picture," showing that despite the IOC's "efforts to make the Games more affordable, host cities are running up large deficits." The study shows that since 1960, host cities "have exceeded their projected budgets by an average of 172%." LA28 organizers have put forth a $6.9B budget and "vowed to cover all costs through ticket sales, sponsorships, merchandising and other revenue." But city and state legislators have "agreed to serve as a financial backstop, so taxpayers will have to foot the bill for any overruns." However, Wharton notes L.A. has an "advantage because of its array of existing venues." Bent Flyvbjerg, a business professor who co-authored the study, said, "The risks are lower for Los Angeles than for your average city. It doesn't mean they are not at risk." Wharton notes the Oxford study "focuses on sports-related costs such as venue construction." It "does not consider other expenses that often come with the Games, as cities spend tens of billions to improve local roads and infrastructure." The L.A. City Council has "insisted it has no plans for any major projects" (L.A. TIMES, 9/4).
