Los Angeles City Controller Kenneth Mejia formally demanded LA28 hand over financial records the Olympic organizing committee is contractually required to disclose, alleging it has complied with only two of nine data categories owed to the city.

The Controller's Office announced Wednesday, Aug. 26, that it submitted the data request to LA28 for records required under a 2021 Games Agreement. The missing information includes comparisons of financial forecasts versus actual spending, bank statements, venue schedules and budgets, contractor identities, and the values and purposes of contracts.

"We all want a successful 2028 Olympic Games, but its success cannot be at the cost of transparency and accountability to LA taxpayers," Mejia said in a statement reported by Spectrum News.

Six of the nine required subsections are incomplete. One has unknown compliance status. LA28 did not respond to a request for comment, according to Spectrum News.

Budget has grown nearly $2 billion

The demand lands as the city's financial exposure has ballooned. When Los Angeles agreed to backstop the Games in 2017, the budget stood at $5.306 billion. It has since grown to $7.263 billion, according to the Controller's Office.

Mejia noted that each time LA28's expenses have increased, projected revenues have risen by the exact same amount.

Under the 2017 Host City Contract, Los Angeles taxpayers face potentially unlimited financial obligations, according to Mejia. The Enhanced City Resources Master Agreement (ECRMA) the City Council approved 10-4 on Aug. 12 spells out the layered liability: if the Games runs a deficit beyond $600 million, the city covers the first $270 million, the state covers the next $270 million, and beyond that the city's liability is unlimited.

As we reported Aug. 17, Councilmembers Monica Rodriguez, Nithya Raman, Eunisses Hernandez and Ysabel Jurado voted against the ECRMA. Security costs alone are expected to reach $732.2 million for LAPD and other agencies, and those costs are not covered by the reimbursement agreement.

Audit only after the Games

The council considered six amendments to the ECRMA but advanced only one: a requirement that LA28 fund an audit of its finances after the Games conclude. Councilmember Raman had proposed requiring LA28 to use any surplus revenue to cover city expenses. That proposal was sent back to committee for further discussion.

Raman is challenging Mayor Karen Bass in the Nov. 3 election.

City Administrative Officer Matt Szabo, the city's lead negotiator, previously said LA28 is meeting sponsorship and revenue targets. Separately, Szabo acknowledged the limits of the agreement itself.

"This is not an agreement that is intended, or even has the capability of eliminating risk that the city has agreed to take on," Szabo said, according to Spectrum News.

Rodriguez said Aug. 12, after voting against the ECRMA, that the agreement "embarrassingly weakens the City's authority to audit LA28's finances."

The city and LA28 plan to finalize Venue Service Agreements by July 2027, with costs set by Oct. 31, 2027. No deadline for LA28 to respond to the Controller's data request has been publicly stated.