Daily TribuneMounting costs, economic uncertainty, and political tension cast doubt on Los Angeles' ability to deliver a financially sustainable Olympic Games in 2028.
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An aerial image shows parking lots and the neighborhood surrounding SoFi Stadium in Inglewood, California, on 28 March 2025. SoFi Stadium will be one of the LA28 Olympic Games sport venues.
Patrick T. Fallon / AFP
Chart from Olympic.com highlighting the IOC's projected economic benefits from hosting the Games.
Chart from Olympic site
IOC chart showing sources of Olympic funding, including cash contributions, services, and value-in-kind support.
Chart from Olympic site
As the countdown to the 2028 Summer Olympics in Los Angeles continues, concerns are mounting over the event’s financial sustainability—particularly amid warnings of a global recession, rising U.S. trade tariffs, and inflationary pressures.
In a recent article published by Inside the Games, journalist Alex Oller painted a sobering picture of the challenges facing LA28 organizers, who are now navigating a drastically different economic landscape compared to the profitable 1984 Games. Citing both historical precedent and current fiscal realities, Oller argues that the next Olympic hosts could be on course for serious financial strain.
While the International Olympic Committee (IOC) continues to promote the economic and social benefits of hosting the Games, Oller’s report questions whether such outcomes are still achievable given recent developments. The IOC points to success stories and sustainable practices in upcoming editions like Paris 2024 and Milano-Cortina 2026, emphasizing the use of existing infrastructure and privately funded budgets. However, critics say these assurances don’t fully address the unique challenges of hosting in an economically uncertain United States.
To support its claims, the IOC outlines in its official materials how Olympic Games are funded—through a combination of cash contributions, services, and value-in-kind support. These funding mechanisms are designed to reduce direct public costs and emphasize private-sector involvement.
Los Angeles City Financial Controller Kenneth Mejia, quoted in Oller’s piece, warned that the city may already be $300 million over budget, even before the Olympic buildup hits full stride. “The full scope is just emerging for disaster response expenses, revenue loss from property damage and business disruption, and the costs of recovery and rebuilding,” Mejia wrote in a letter to Mayor Karen Bass, citing the impact of recent wildfires. He also noted that these mounting costs come on top of Olympic preparations.
Oller's article also draws comparisons to Rio de Janeiro 2016, where Olympic infrastructure fell into disrepair and anticipated benefits never materialized for many residents. As Inside the Games notes, similar post-Games financial troubles have plagued other host cities, despite initial optimism and IOC promises.
The report highlights that while Los Angeles organizers have stressed the use of existing venues and corporate funding to limit expenses, a recent CNBC report revealed that up to $270 million in Olympic-related costs could still fall on local taxpayers if revenues don’t meet projections.
Adding further complications is the current U.S. political climate. Oller points out that with Donald Trump once again in the White House—a figure known for climate change skepticism and protectionist policies—the international cooperation and environmental focus championed by the Olympic Movement may be harder to align with domestic policy.
Despite these concerns, the IOC remains firm in its stance that Olympic investments yield long-term benefits. “In all cases... the economic benefits for the city, region, and country are predicted to far outweigh the Games-related investments,” the organization states.
But with rising local skepticism—including from activist groups like NOlympics LA—and limited financial breathing room, LA28 may find itself walking a fine line between upholding Olympic ideals and managing fiscal reality.
As Oller concluded in Inside the Games, while Los Angeles was able to pull off successful Games in 1932 and 1984, "forecasting feels as complicated as ever" in the current economic climate.
