VAN NUYS — While Los Angeles City Council members lauded Los Angeles 2028’s record-setting agreement with the International Olympic Committee to host the 2028 Games, city and bid committee officials acknowledged on Friday that the council will vote to approve the agreement without having a validated budget for the 2028 Games.
The council is expected to approve next Friday the Host City Contract for the 2028 Games and a Memorandum of Understanding between the city, Los Angeles 2028 and the U.S. Olympic Committee that gives the council a role in the planning of the 2028 Games and the city protection against an unexpected financial deficit.
That vote will come before LA 2028 has begun finalizing its budget for a third Los Angeles Olympics and perhaps 18 months before an analysis of the budget by KPMG, an accounting firm, is completed.
Council members and city officials, however, said any concerns they have about the absence of an updated budget and the uncertainty related to hosting Games 11 years from now are eased by increased protections for the city proposed by LA 2028, unprecedented financial concessions by the IOC in the 2028 agreement and the strength of the 2024 bid’s budget which was validated by KPMG last year.
LA 2028 and the IOC on Monday reached an agreement on the city hosting the 2028 Olympics as part of a tripartite deal in which Paris will hold the 2024 Games. Under terms of the agreement, which came less than a month after the IOC unanimously voted to award two Games in the same year for the first time since 1921, LA 2028 will receive more than $2 billion in payments and financial concessions from the IOC.
The positives of the IOC agreement and new safeguards proposed by LA 2028 “outweigh the likelihood of any additional risk,” council member Paul Krekorian said during a Friday meeting for a council subcommittee on the city’s Olympic bid. The meeting was the first time the council addressed the 2028 Games in a public forum since the deal was struck Monday.
“This seems to me to be a very clear cut case,” Krekorian continued. “It’s very clear it’s a better package for the people of LA and a safer package for the taxpayers of LA than the 2024 (agreement between LA 2028 and the city) and that was a great package.”
In addition to the city council, the agreement also has to be approved by the IOC and the USOC. Los Angeles 2028 chairman Casey Wasserman and Los Angeles Mayor Eric Garcetti said they have been…