Financial details of L.A.’s bid for 2024 Olympic Games revealed

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Financial details of L.A.’s bid for 2024 Olympic Games revealed Coliseum

The Coliseum is shown during the 1984 Olympics. (Eric Risberg / Associated Press)

Eric Garcetti International Olympic Committee Los Angeles City Council U.S. Olympic Committee

With Los Angeles poised to become the American bidder for the 2024 Summer Olympics, new financial details about the city’s campaign were revealed Tuesday.
The official bid book created in Mayor Eric Garcetti’s office breaks down the estimated $4.1 billion in costs.
Organizers would spend an estimated $713 million preparing competition venues, the vast majority of which are already in existence but would need some work.

Several other major capital expenses would be shared with private partners, according to the proposal.

A developer would take the lead on an athlete’s village along the L.A. River, with organizers contributing $75 million. The media center would be constructed on the NBCUniversal Studio lot, with organizers paying $130 million of the total bill.
Those two venues could cost more than $1 billion combined.
The Coliseum would require a major renovation to host competition as well as the opening and closing ceremonies. The proposal states that USC officials plan to invest more than $500 million in the facility, which the university leases, beginning in 2017.

Organizers would chip in $300 million.

On the revenue side, the proposal estimates a $1.5-billion contribution from the International Olympic Committee, $1.4 billion in domestic sponsorships and $1.1 billion from ticket sales.
In all, Garcetti’s team expects to generate $4.8 billion in revenues. Subtracting a $400-million contingency fund against overruns and $150 million in insurance premiums, that would leave $161 million in surplus.

The mayor has said that, if Los Angeles is selected as the host in a 2017 vote, he would sign an IOC contract that would make the city financially responsible if unexpected costs exceed revenues.

The City Council is scheduled to vote Wednesday on whether to give Garcetti authorization to make such a promise.

Los Angeles became the front-runner for the U.S. bid after Boston withdrew last month amid concerns over costs. The U.S. Olympic Committee is expected to make Los Angeles its official candidate near the end of August.