POSTED: December 2nd 2016
NewsUpdate

Olympics: The LA 2024 bid unveils new balanced budget that has 'no surprises'

MARISSA FLANDERS (USA) / Sports Features Communications

(SFC) A balanced budget was released by LA 2024 and it presents the City of Los Angeles and the Olympic Movement with "no surprises." The budget is based on a low-risk Games Concept and realistic revenue projections.

"From day one, LA 2024's budgetary objective has been: 'no surprises.' If LA is chosen to host the 2024 Games, the IOC does not have to worry about changing or evolving budgets, shifting competition venues or uncertainty about the delivery of the Games," commented LA 2024 Chairman, Casey Wasserman.

LA 2024's budget has $5.3 billion of revenue and cost that leaves $0 of net position and $491.9 million (10.2% of costs) contingency.

LA has several favorable conditions that have lead them to be able to produce a balanced budget, including:

                     Proposed Olympic Village is already in place.

                     Over 30 world-class competition and non-competition venues are in place and any other planned venue projects are by private investors.

                     Massive public transportation upgrade is already underway for LA.

                     A Strong foundation of growing, dynamic, and resilient state economy.

This all means that no complex and costly development projects; no new permanent competition and non-competition venues; and no Games related public infrastructure are required for the LA 2024 Games. LA 2024 achieved this realistic and achievable budget through rigorous planning and collaboration with the City of Los Angeles. Over the last six months, LA 2024 has held budget workshops with City officials to further improve on their budget developments.

"Our Games Plan offers stability and minimal risk to the City and the Olympic Movement. That is what we mean by a 'New Games for a New Era.' This is a realistic Plan, with a responsible, realistic budget, that faithfully reflects the IOC's Olympic Agenda 2020 philosophy: credibility; sustainability; partnership. Like the organizers of the LA 1984 Games, we believe we have a responsibility and a tremendous opportunity to put forward a plan that will serve Los Angeles and the Olympic Movement long after the Games are over in 2024," expressed Chairman Wasserman.

The budget is also assured through completed commercial negotiations, partnerships with owners of fully operational venues, and real-world financial modeling information from third-party specialists. The specialists came from AECOM, Boston Consulting Group, London 2012 Organizing Committee financial experts, and Broadstone Group.

In addition, the budget was submitted to KPMG, a "Big 4" accounting firm chosen by the City of Los Angeles to independently evaluate the budget. Their analysis will be publicly filed to show transparency during the bidding process.

Mayor of Los Angeles, Eric Garcetti stated, "The people of Los Angeles and the Olympic family can be assured that the budget we release today reflects accurately the cost of delivering LA 2024's Plan for a fiscally responsible Games that provides only upsides - economic, social and sporting - for our city and for the Olympic Movement. Instead of mortgaging our futures on unknowable construction costs, our Games will capitalize responsibly on investments that are already transforming our city for the future."

** MARISSA FLANDERS is a graduate of Saint Leo University with a Bachelor's Degree in Sport Business. She has over four years of writing experience and has a real passion for ice hockey following the Pittsburgh Penguins on her blog www.thepenshockeyshow.com.


Keywords · LA 2024 · Los Angeles · Olympics · Paralympics · Olympic bidding


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