Hosting the Olympics is about more than just stadiums and athletes. It requires thousands of police officers, expanded transit services, security perimeters and infrastructure upgrades—all of which come at a cost.

Los Angeles officials say the 2028 Games will be a ‘no-build’ Olympics, meaning no new venues will be built. But even without new construction, the Games still carry a hefty price tag in public safety, transportation, and operations—costs that are under greater scrutiny as the city deals with mounting wildfire recovery expenses.

The city’s preliminary estimate places the wildfire-related costs at $358 million, but studies show the total economic impact in the region is far greater, with property and capital losses from the Palisades and Eaton fires estimated between $95 billion and $164 billion. Meanwhile, costs continue to climb, ranging from lost tax revenue to long-term rebuilding efforts, further straining a city already in the red.

Some city officials warn that these rising expenses could strain the City of Los Angeles’ ability to absorb Olympic-related costs, particularly for public safety — one of the most unpredictable and expensive aspects of hosting the Games.

“The biggest part of those expenses are going to be associated with the security and some of those related costs that will come in closer to 2028,” said L.A. City Councilmember Monica Rodriguez, who represents Council District 7, an area that includes much of Northeast San Fernando Valley.

While L.A. officials have not yet released a full estimate for public safety costs, past host cities have seen those expenses surge as the Games approach.

The 2012 London Olympics, initially budgeted £282 million (about $450 million in U.S. dollars at the time) for security, but the overall costs rose to more than £1 billion, about $1.6 billion U.S. dollars. The 2024 Paris Olympics reportedly spent approximately €1.14 billion (about $1.21 billion U.S. dollars) on security.

Former L.A. Councilmember Paul Krekorian, now head of the Office of Major Events, which oversees the city’s preparations for the 2026 World Cup and the 2028 Olympic and Paralympic Games disagreed that L.A. will struggle to cover its expenses. He said that from the start city officials have been clear that the city will not fund the Olympics.

“The organizing committee has a $7 billion budget for putting on the games,” Krekorian said, “and we expect that all $7 billion of that will be derived from private sources, from their sponsorships, their advertising, their ticket sales — and not fall on the taxpayers of the City of Los Angeles.”

He said the city is not taking on additional infrastructure costs but is instead reprioritizing existing investments to align with the Games.

“I think everybody recognizes that we don’t have the additional funding to be investing in things that we wouldn’t otherwise be investing in,” Krekorian said. “That’s not realistic and that’s not what we’re doing.”

Rather than seek new funding, city officials are focused on maintaining the city and making it more livable — improving mobility and prioritizing existing investments, whether the Olympics were happening or not, he said.

On the topic of public safety, Krekorian noted that the 2028 Games were designated as a National Special Security Event (NSSE) by the federal government earlier than any other event of its kind, meaning the U.S. Secret Service is leading the security planning.

He said security efforts are being coordinated with federal, state, and local agencies, including LAPD, the Los Angeles County Sheriff’s Department, California’s Office of Emergency Services, the California Highway Patrol, the U.S. State Department and the Department of Homeland Security.

To get ready for transportation needs, the Games Mobility Executives (GME)—made up of Metro, Metrolink, LADOT, Caltrans, and other agencies—is coordinating travel routes, venue access, and public transit improvements to ensure smooth transportation during the Games, Krekorian said.

He stressed that these plans have been in place for years and that instead of seeking additional funding, the city is prioritizing and reorganizing existing resources to meet the demands of the Games.

“That’s the sort of thing that we should be doing for the taxpayers of Los Angeles in any event,” he said. “The Games just provide us with an opportunity for greater urgency in getting that done.”

An economic boost, but at what cost?

Even if the city isn’t directly paying for the Olympics, the broader question remains: Will the Games generate enough economic benefits to offset the financial pressures?

Supporters argue that the Olympics will bring billions in revenue, boosting tourism, creating jobs and generating new business activity.

An economic study commissioned by the city from Beacon Economics, a research and consulting firm, projects that the Games will have a $14.2 billion economic impact, largely due to the “multiplier effect”—where every dollar spent circulates through the economy, driving additional economic activity.

“Actually the last Olympics that was profitable for any city was the Los Angeles Olympics in 1984, so all of the other Olympics since then, (those cities) lost money,” said Stafford Nichols of Beacons Economics. “Now, that doesn’t mean it’s not good for their economy, because a lot of people are spending money there,” Stafford said.

The Beacon Economics study estimates that $8.9 billion will be spent overall, with about $1.6 billion going toward preparations, including setting up venues and athlete housing, Nichols said.

Another $5.3 billion is expected to be spent during the Games, while visitor spending is projected to reach $2 billion. Because of the multiplier effect, the $8.9 billion in direct spending is expected to generate $14.2 billion in total economic output. In addition, the Olympics is estimated to support about 77,000 jobs.

A majority of the Olympic costs will be covered by LA28, a privately funded nonprofit organizing committee, Nichols said. LA28 receives financial support from corporate sponsors, licensing deals, ticket sales, hospitality services, and the International Olympic Committee (IOC).

The construction of new sports venues and infrastructure upgrades, such as roads, airports, and railways, as well as security and transportation, fall outside the Olympic organizing committee’s budget and are typically managed by local authorities.

But unlike many past Olympics host cities, Los Angeles is taking a different approach—one that supporters say will help keep costs low. L.A. has committed to a “no-build” Games, relying on existing venues instead of constructing new ones.

This city’s strategy is rare. Host cities typically spend billions on new infrastructure, often leading to budget overruns and long-term maintenance costs. But Los Angeles officials argue that by avoiding major construction, the 2028 Games won’t place a significant financial burden on taxpayers. The city plans to rely on existing facilities and infrastructure such as Crypto.com Arena and the Los Angeles Memorial Coliseum.

“We don’t have to build big, expensive, new capital projects like that because we already have world class facilities here in Los Angeles and the surrounding area that are as good as any place else in the world,” Krekorian said.

Los Angeles used a similar approach in 1984, hosting what many consider the only truly profitable Olympics. As the sole bidder, the city secured favorable terms with the IOC and used existing venues instead of building costly new facilities.

Despite criticism for its reliance on existing facilities and corporate sponsors, the Games turned a $223 million profit and became a model for future Olympics.

Krekorian said he hopes Los Angeles can replicate that success.

While he acknowledged that recent wildfires were among the most expensive natural disasters in U.S. history, he argued that investing in major events like the 2026 World Cup and 2028 Olympics can help drive economic growth and generate new tax revenue—resources that could support wildfire recovery and strengthen the city’s financial foundation.

“And that’s the sort of thing that the World Cup next year and the Olympics in ’28 and the Paralympic Games in ’28 can provide us,” he added.

But some experts argue that relying on the Olympics as an economic boost is more symbolic than a real solution, particularly when a city is already facing financial strain.

“It’s a temporary palliative, it’s sort of like taking an extra dose of Tylenol,” said Joel Kotkin, the Roger Hobbs Presidential Fellow in Urban Futures at Chapman University. “The headache will come back.”

He notes that while L.A.’s existing infrastructure makes hosting the Olympics easier, it also limits economic stimulus since no new venues will be built. As a result, most of the created job opportunities will be temporary roles in event staffing and transportation and not steady employment.

“My sense of it is that the Olympics is sort of just going to be a show,” Kotkin said. “L.A. can still put together a good show, but can it put together a good city? I think right now it doesn’t look so great for that idea.”

Even with most Olympic costs covered by private funding, will the city avoid spending anything? And will the financial strain from wildfire recovery have little to no impact on the Olympics plans?

Hidden costs of a “no-build” Olympics

Host cities that pledged to keep costs low for the Olympics have often ended up spending far more than expected.

Take the 2024 Paris Olympics: Organizers aimed for a no-build approach, with 95% of infrastructure relying on existing or temporary facilities, but the city still spent $3.2 billion on infrastructure in the Paris urban area, according to a WalletHub analysis.

Its budget also more than doubled from its original bid, going from €3.6 billion (about $3.76 billion) to €8.8 billion (about $9.21 billion), according to a University of Oxford study published in July 2024.

For decades, host cities have used the Olympics as an impetus to upgrade infrastructure, including roads and waterways. But with wildfire recovery taking priority, other major improvement projects may be postponed, including the planned expansion of the Convention Center.

Business leaders have long pushed for the expansion, arguing that L.A. needs a modern convention center to stay competitive. Built in the 1970s, it faces stiff competition from facilities in San Francisco, Anaheim, and San Diego, all of which vie for major conventions and tourism dollars. City leaders have repeatedly tried—and failed—to advance an expansion plan.

Since 2018, the city has worked with Anschutz Entertainment Group (AEG) and Plenary Group on a possible expansion under a public-private partnership. However, the COVID-19 pandemic delayed the project.

Last summer, the City Council approved $54.4 million for pre-design work as part of a push to complete the expansion before the 2028 Olympics, including a 700,000-square-foot New Hall building, which would connect the existing South and West Halls over Pico Boulevard to create a single, continuous space.

The New Hall building would include 193,000 square feet of new exhibit hall space; 60,000 square feet of new meeting rooms; an atrium entrance and lobby along Pico Boulevard; a 98,000-square-foot rooftop multi-purpose hall and a 10,000-square-foot outdoor event space with a view of Downtown Los Angeles.

But at the City Council’s Feb. 4 Economic Development and Jobs Committee meeting, officials acknowledged that ongoing wildfire recovery efforts would make it difficult to complete the project before the Olympics. The City Administrative Officer’s Office is creating a report for the City Council expected in the next couple of weeks.

Krekorian said the Olympics do not require an expansion of the Convention Center, which is scheduled to host fencing and table tennis competitions.

“And in fact, I would take it one step further,” he said. “The biggest concern about the Convention Center in relation to the Olympics was that if we went forward with the project, it might interfere with the Olympics.”

City officials and business leaders had hoped to use the Games as a catalyst to finally break ground on the long-awaited Convention Center project. If the expansion is scrapped again, it’s unclear when, or if, it will move forward.

The city has also approved multiple projects to accommodate tourists and retail activities in 2028, including a new 18-story hotel, which will serve as an addition to the 24-story Hilton Los Angeles/Universal City hotel.

Meanwhile, city resources are being directed toward wildfire recovery efforts—potentially delaying upgrades to streetlights, roads, and other infrastructure that would benefit both the Olympics and L.A.’s residents and businesses.

Not everyone supported the expansion of the Convention Center ahead of other pressing needs. Rodriguez, who cast the lone vote against spending money on pre-design work, warned that the city must balance Olympic preparations with wildfire recovery.

“The beauty and the curse of local government is you’ve got to prepare for all of those things, all at the same time,” Rodriguez said. “And we’re a city that’s capable of doing it, but we have to have the right priorities in place and we’ll be very thoughtful about how we spend resources so that we can take care of all of those different obligations.”

Some warn that the real challenge is deciding where the city’s priorities should be.

“​​The city’s going to have to prioritize what’s the most important. They have an obligation to the Olympics, but they have a deeper obligation to their citizens,” said Joel Fox, an adjunct professor at Pepperdine University’s Graduate School of Public Policy

“Will they be able to fund things necessary to protect and keep the citizens of Los Angeles safe, while deciding how much they’re going to spend on the Olympic Games? And that’s the question that they are going to have to answer,” Fox added.