Add The California Post on Google Los Angeles will reap massive economic rewards from the 2028 Summer Olympics — if its leaders can come together to seize the opportunity and work together long before the torch arrives.
The LA County Economic Development Corporation (LAEDC) recently issued its analysis of the potential economic benefits of the 2028 Olympic and Paralympic Games. The study — commissioned by LA28, the private organizing committee charged with conducting the Games — estimates the Games could generate between $20-$40 billion in economic output, and create more than 200,000 jobs across the Southern California region.
Critics may say the projections are “overly rosy;” it’s true that not every host city has done what it takes to make the Olympics live up to their potential.
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However, there is no doubt that the 2028 Games could provide substantial economic benefits — if LA does the right thing.
The city need only look to its own history to understand the way forward.
The 1984 Olympics generated a net profit of $230 million. This surplus funded diverse benefits in youth sports, new sports venues and the arts — which continue today. That is the gold standard for the current Games.
With a $7.15 billion budget, the 2028 Games could boost a variety of local businesses, and benefit employees in construction, transportation, hospitality, security, event production and other sectors.
There is no doubt that the 2028 Games could provide substantial economic benefits — if LA does the right thing. AFP via Getty Images An additional $8 billion is available to update sports venues, transportation modes and LAX. This spending will spin off benefits long after the Games, including juicing federal, state and local tax revenue.
The Games are expected to draw around more than 1 million out-of-town visitors who will generate more than $1 billion in spending. The resulting economic activity is projected to generate $5 billion across five Southern California counties — LA, Orange, Riverside, San Bernardino and Ventura. It is incumbent on the city to insist that local businesses receive the majority of benefits.
It is also important to anticipate what could go wrong.
A quick history lesson: The only two cities bidding for the 1984 Olympics were Tehran and Los Angeles. Thanks to the Islamic Revolution, Tehran was not an option.
Montreal hosted the 1976 Games and incurred a $1 billion deficit that took 30 years to pay off. When concerns over costs arose before the Montreal Games, its mayor dismissed them: “The Olympics can no more have a deficit than a man can have a baby.”
American athlete Carl Lewis raises his arms in triumph while competing at the 1984 Summer Olympics at the Los Angeles Memorial Coliseum. Getty Images There are more recent examples of failure: Expenses for the 2024 Paris Olympics exceeded its budget by 115%. The 2016 Rio Games went over budget by 350% and London’s 2012 Games spent 76% more than planned.
Yet LA succeeded with the ’84 Games and delivered the first profitable modern Olympics. How?
In 1976, 74% of Los Angeles voters approved a city charter amendment that guaranteed the city would avoid financial liability. I was a top aide to the two LA city councilmembers, Zev Yaroslavsky and Bob Ronka, who spearheaded the effort and assisted in drafting the amendment.
Fast forward to the 2028 Games: The city has passed a plan to recover costs. While a new city charter amendment would have provided even more protection to the city and its taxpayers, now the city has two main tasks: It must monitor spending to avoid liability, and it must make sure money is spent to boost the local economy, so that the city can capture some of the benefits.
Compromises are inevitable. While some union leaders and contractors oppose the planned temporary moratorium on major infrastructure work during the 2028 Olympics, that is a small price to pay for the economic stimulus.
Some LA City Council members have pressed LA28 to agree that a higher percentage of the contracts be dedicated to LA-based businesses, while LA28 is focused on generating a profit. That means the committee wants to choose the best operators at the lowest cost, regardless of whether they are local.
These are tough interests to balance. But LA can do it — if its leaders step up.
The ’84 Games were a highlight in LA’s history. A determined mayor, and a watchful city council, can ensure a Hollywood sequel.
Wayne Avrashow is an attorney who served on two LA government commissions.
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