Los Angeles 2028 Prepares for an Olympic Showcase Amid Financial, Logistical Challenges

Posted : 16 August 2024

As the Paris Olympics come to a close, anticipation for the 2028 Summer Games in Los Angeles is already building. Known for its Hollywood flair, Los Angeles is poised to deliver a memorable spectacle, promising a high level of entertainment. The excitement began to take shape at the Paris closing ceremony, where the LA 2028 organizers provided a preview of what’s to come. Tom Cruise made a dramatic entrance, parachuting from the roof of the National Stadium on a motorcycle, while musical performances by Billie Eilish, Snoop Dogg, and the Red Hot Chili Peppers highlighted the festivities.

However, organizing an Olympic Games comes with significant financial challenges. One of the major hurdles for the LA 2028 committee is securing the necessary funding. The committee is targeting $2.5 billion from local sponsorships alone. Reynold Huber, the newly appointed CEO of the LA Games Organizing Committee, reported that 65% of this goal has already been met, according to Sportico. This progress is especially noteworthy given the difficulties faced after the Tokyo 2021 Games, where the American Olympic Committee lost 20 sponsors, creating a substantial challenge in securing new support.

In recent months, several large local companies, including Cisco, Michelob Ultra, and Autodesk, have joined the sponsorship roster. Despite these additions, the committee is still in search of additional key partners. Delta and Comcast have contributed, but after parting ways with Salesforce last April due to company cuts, the committee has promised to announce new sponsorship deals soon. They chose not to disclose these during the Paris Games to maintain focus on current events.

The success of the Paris Games has provided a boost for LA 2028. Viewing figures from Paris have shown a significant increase, with an average of 30.6 million viewers across NBCUniversal platforms, a substantial 82% rise from Tokyo 2020. The men’s basketball final, where the USA triumphed over France, was particularly notable, attracting an average of 20.3 million viewers and becoming the most-watched final since the 1996 Atlanta Olympics.

The performance of Peacock, Comcast’s streaming service, has been a highlight, proving its ability to handle major sporting events despite competition from established platforms like Netflix and Amazon Prime Video. Peacock’s coverage during the Paris Games included up to 60 live events simultaneously and over 3,200 live events in total, supported by new tools like Peacock Discovery Multiview and AI-powered daily summaries. This success stands in contrast to the Tokyo Games, which faced challenges due to the pandemic and drew lower viewership numbers.

Looking ahead, the LA 2028 organizers are optimistic that the success in Paris will translate into increased sponsorship and advertising revenue, as well as higher ticket sales. They have partnered with AXS and CTS EVENTIM to facilitate ticket sales, aiming to sell more than 150,000 tickets per day. The inclusion of popular sports like baseball, softball, and lacrosse, along with renowned American athletes, is expected to further drive interest and ticket sales.

Another point of interest is Russia's potential participation in the Games. With Russian athletes currently suspended due to the ongoing conflict with Ukraine, their return could add an intriguing element to the event. Rob Perzmark, a veteran in Olympic sponsorship, suggests that Russia’s involvement could heighten anticipation and introduce a new narrative to the Games.

On the infrastructure front, Los Angeles is focusing on significant improvements to support the Olympics. Plans include expanding the train system and upgrading the airport, with projects funded by federal and municipal budgets as well as airport fees. The Los Angeles County Transportation Authority will invest $20 billion in new bus and rail lines, while Los Angeles International Airport is set to receive a $14 billion renovation.

The organizing committee estimates that hosting the Games will cost nearly $7 billion, including expenses for opening and closing ceremonies. The municipality has committed to financial guarantees that could place taxpayers at risk of covering any budget overruns. Historical precedents show that previous Olympics have often exceeded their budgets, with the Tokyo 2021 and Rio 2016 Games being notable examples.

Despite the financial risks, Los Angeles is well-positioned to succeed. The 1984 Olympics held in the city are remembered as a financial success, generating a reported profit of $223 million. The current plan includes utilizing existing facilities rather than constructing new ones, with venues like the Colosseum and SoFi Stadium slated to host various events.

The LA 2028 Games are set to blend Hollywood glamour with the spirit of global sports, aiming to be environmentally friendly and accessible. While the city faces considerable logistical and financial challenges, its track record and ambitious plans suggest that the 2028 Olympics could become a landmark event, watched with great interest around the world.

Los Angeles 2028 Prepares for an Olympic Showcase Amid Financial, Logistical Challenges

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