A $250 million (£173 million/€222 million) financial guarantee has been proposed to help Los Angeles’ bid to host the 2024 Olympics and Paralympics by the leader of the California Senate.
The bill, introduced by Senate President Pro Tem Kevin de Leon, would establish an “Olympic Games Trust Fund” that could be used to help offset any cost overruns or liability resulting from the Games.
It is claimed that de Leon’s bill is “consistent with the State’s prior practice of supporting California bid cities.”
Los Angeles Mayor Eric Garcetti has consistently claimed that the city will host a Games that will be profitable.
The city made a surplus of $225 million (£155 million/€200 million) on the last occasion they hosted the Olympics in 1984.
The International Olympic Committee (IOC) require all host cities to sign a contract which means they must agree to fund any losses.
In January Los Angeles City Council unanimously approved a Memorandum of Understanding (MOU) with Los Angeles 2024.
The most significant undertaking in the document was a commitment by the bid to privately fund the candidature process and against committing any public funds without the City Council’s approval.
Los Angeles was originally overlooked by the United States Olympic Committee as their candidate for the 2024 Olympics and Paralympics.
Boston, the original choice, however, withdrew its bid last July following a high-profile public campaign by some of the city’s citizens led to the Mayor Marty Walsh refusing to sign the Host City Contract for fear it would commit taxpayer money to staging the Games.
Last September, Los Angeles 2024 President Casey Wasserman raised the bid’s designated $35 million (£23 million/€31 million) budget after launching an appeal to local business leaders.
- By Duncan Mackay
- Republished with permission insidethegames.biz