A new report is challenging Los Angeles officials to reconsider hosting the 2028 Olympic Games, highlighting potential financial risks that could burden local taxpayers if the event goes over budget.
Strategic Actions for a Just Economy (SAJE) issued a report on Thursday that examines L.A.’s financial exposure as the host city. The report comes amid growing scrutiny of LA28 organizing committee head Casey Wasserman, who faces calls to resign over recently released emails with convicted sex trafficker Ghislaine Maxwell.
“L.A. city leaders must put the option of cancellation on the table now,” Chris Tyler with SAJE wrote in the report. “They must urgently take up the work electeds failed to do in 2017, when they committed L.A. to hosting the Games without first having an informed, public conversation to weigh costs and benefits.”
The financial stakes are significant. LA28 currently has a $7.1 billion projected budget. While the Olympics are intended to be mostly privately financed, the city of Los Angeles is contractually obligated to cover the first $270 million in losses, with California taxpayers responsible for the next $270 million. Any additional financial burden would fall on Los Angeles taxpayers.
Neil deMause, the report’s lead author, wrote: “L.A. is looking at a potential fiscal disaster either way, and the decision on whether to try to cancel or renegotiate the terms of Olympic hosting depends on which you prefer to risk: billions of dollars in losses on hosting the Games, or billions in penalties for not hosting them.”
The report points to the 2021 Tokyo Olympics, where Japanese taxpayers ended up spending $7.1 billion despite initial promises of lower costs.
Canceling the Olympics would be an extraordinary move. Denver remains the only city to withdraw after being selected, rejecting the 1976 Winter Games when Colorado voters opposed using public money for the event. If Los Angeles pulled out now, it could face billions in legal fees, as only the International Olympic Committee has the authority to cancel under the host city contract.
The SAJE report calls on L.A. leaders to compile a list of all Olympics expenses not covered by LA28, demand detailed spending projections, and develop a strategy for possible cancellation.
City Council members have already begun questioning aspects of Olympic planning, including President Trump’s security task force and the need for increased contingency funds. Three members of the Council’s Olympic committee have called for Wasserman’s resignation.
Despite growing concerns, no City Council members have publicly backed cancellation, and Olympic planning continues. The next L.A. City Olympic Committee meeting has not yet been scheduled, while LA28 leadership is currently in Italy for the 2026 Winter Games.
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