LA Olympic Bid Could Avoid Billion Dollar Pitfalls

The past seven cities that hosted the Olympics spent billions of dollars more than planned, but a bid by the City of Los Angeles could avoid a similar loss.

A report from California’s non-partisan Legislative Analyst’s Office finds that the city has limited its exposure.

"The LA bid really has as its center piece using existing venues in the city, as well as existing infrastructure, to host the games," says Jason Sisney of the LAO. "And that is, really, from top to bottom, what the bid is all about."

With fewer cities willing to apply to host, the International Olympic Committee has changed its standards to encourage cities that propose lower-risk bids.

Los Angeles has proposed that universities provide housing, while professional and collegiate sports complexes hold the events, after mostly temporary upgrades.

Sisney says that would contain the cost, but also create little long-term economic gain from building new infrastructure. Economic analysts say LA made money off the 1984 summer games.

The city currently projects the plan would cost about $4 billion, compared to $20 billion Brazil spent on this summer’s most recent games. State lawmakers have approved $250 million in backstop funding, which could help pay for the Olympics if costs exceed what event revenue, insurance and the City of Los Angeles agree to pay.

Budapest and Paris have also submitted bids. The International Olympic Committee will choose a host city in September.