L.A. Officials Raise Alarms Over Crippling Olympic Costs

Bankruptcy cannot be the legacy, warn city leaders as negotiations with LA28 continue

Apr. 9, 2026 at 10:53pm

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A serene, cinematic painting of an empty city street at dusk, with a lone municipal vehicle bathed in warm, golden light and deep shadows, conveying a sense of financial uncertainty and civic responsibility surrounding the upcoming Olympic Games.As tensions rise over the financial burden of hosting the 2028 Olympics, a sense of unease settles over the streets of Los Angeles.Los Angeles Today

Los Angeles officials are expressing growing fears that taxpayers and the city treasury could be hit with a round of crippling costs to support the 2028 Olympic Games if the city doesn't ink a rigorous deal to assure a 'zero–cost' Games. City Attorney Hydee Feldstein Soto and Councilmember Monica Rodriguez have demanded a contract pledging that LA28 cover any of the city's future costs, warning that 'bankruptcy cannot be the legacy of these Games'.

Why it matters

The stakes remain high for both the city and the private LA28 group organizing the Olympics. The city wants assurances that taxpayers won't be burdened, while LA28 needs the city's services to deliver a successful event. Unresolved issues around security costs, federal funding, and the financial ties between LA28 leadership and convicted sex offender Jeffrey Epstein have heightened tensions.

The details

LA28 projects the Games will cost over $7.1 billion, to be funded through sources like the IOC, corporate sponsors, and ticket sales. But city officials worry unforeseen events could disrupt this revenue model. They are also waiting to learn the full scope of security needs from the U.S. Secret Service, which could add significant costs. The contract between the city and LA28 outlining who will cover excess costs is more than six months overdue.

  • The contract between the city and LA28 is more than six months overdue.
  • City officials expect to receive requests from LA28 by October for the services the Games organization needs at each venue.

The players

Hydee Feldstein Soto

The Los Angeles City Attorney, who is advising city officials on the Olympic contract negotiations and has raised concerns about transparency and potential liabilities.

Monica Rodriguez

A Los Angeles City Councilmember who has joined the call for a contract to ensure taxpayers are not burdened by Olympic costs.

Casey Wasserman

The chairman of the LA28 organizing committee, whose ties to convicted sex offender Jeffrey Epstein have added to the uncertainty around the Games' finances.

Reynold Hoover

The LA28 Chief Executive, who said ticket sales would be one way to assure taxpayers don't get stuck with a big bill.

Matt Szabo

The Los Angeles City Administrative Officer, who is bargaining for the city in the negotiations with LA28.

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What they’re saying

“We are invested in a successful Olympics. The organizing committee knows that it needs the city and city services to have a successful Games. It's in both the city's and the organizing committee's best interest to have a successful Games. We're joined at the hip and we'll succeed together, or not.”

— Matt Szabo, Los Angeles City Administrative Officer

What’s next

The city and LA28 are expected to reach a tentative agreement on the Olympic contract within the next two to three weeks, according to a source familiar with the negotiations. The contract will need to balance the city's desire for full reimbursement of costs with the need to maximize federal funding for the Games.

The takeaway

This standoff over Olympic costs highlights the high-stakes financial risks cities face when hosting major sporting events. Los Angeles officials are determined to avoid a scenario where taxpayers are left footing the bill, but must also ensure they don't jeopardize the success of the 2028 Games through overly rigid negotiations. Finding the right balance will be crucial in the final contract.