The Brief

The 2028 Olympics are coming to Los Angeles as a multi-billion dollar operation funded by massive private and federal government investments and backed by city and state pledges to cover cost overruns.

The current privately funded budget for the Games is more than $7 billion. The federal government has agreed to chip in $1 billion to pay for security and is being asked to contribute another $2 billion to pay for Games-specific transit plans.

But the city of L.A.'s financial exposure is essentially unlimited. The city is on the hook for the first $270 million in losses, if they occur. The California Legislature has agreed to make statewide taxpayers pick up the next $270 million. After that, any additional financial burden will fall on Los Angeles taxpayers.

L.A. City Council President Marqueece Harris-Dawson told LAist that he doesn't think such overruns will happen but acknowledged it was "a risky proposition" for the city. 

"There's a lot of things that can go wrong," he said.

What financial costs have other cities faced?

The last time L.A. hosted in 1984, the Olympics did turn a profit. But that was a rare feat. Many host cities have been left with costly bills. Still, L.A. agreed to be the financial guarantor of the 2028 Games in order to clinch the Olympic bid. 

A general view of Los Angeles Memorial Coliseum stadium during the 1984 Olympic Games.

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In 2016, Rio de Janeiro became a poster child for the failed promises of the Olympics after the Games ended with crushing debt and derelict infrastructure. Then, Tokyo's expenses spiked when the 2020 Games were delayed due to the COVID-19 pandemic. Those games cost $13 billion — and Japanese taxpayers covered more than half of that, according to the Los Angeles Times. 

Unlike other recent host cities, organizers of the Paris Games announced in June that they had a budget surplus.

The Paris Games were cheaper than recent summer Olympics, according to Victor Matheson, a professor at College of the Holy Cross who studies the economics of the Olympics. He attributed this, in part, to reforms implemented by the International Olympic Committee to help keep costs down, including by encouraging host cities to use existing venues rather than building elaborate new facilities. Paris also had plenty of capacity for tourists already.

That's the strategy L.A. is banking on to deliver a financially successful Olympics. The 2028 competition will take advantage of the region's glut of already-existing hotels and venues, from Dodger Stadium to the Rose Bowl to Crypto Arena to SoFi Stadium.

How billions in Olympic costs could hit taxpayer wallets

"We have an advantage over every other city in the world, and that is the existence of the venues and the facilities that we have here," said Paul Krekorian, the former L.A. councilmember who now leads the city's major events office, at a recent Olympic event in Venice Beach.

What protections are in place for L.A.?

L.A. may be hosting the Games, and backing them if costs run over, but the city isn't the one running the show. The event itself is privately planned and intended to be largely privately financed. That effort is led by the nonprofit LA28, a group led by sports agent and entertainment mogul Casey Wasserman. In its latest annual report, LA28 outlined a more than $7.1 billion budget to deliver the games.

The International Olympic Committee, the organization that oversees all Olympic Games, is kicking in around $1.39 billion. After that, LA28 expects to raise the money it needs to run the games from corporate sponsorships, ticket sales and licensing. 

LA28 officials say they are confident in their progress. But there are also some safeguards in place for Los Angeles in case there are overruns. The city's agreement with LA28 requires the organizers to establish a $270 million contingency fund that the city will control. LA28's latest budget includes an overall contingency of $613.5 million, which includes the city's portion.

The organizers are also required to take out a number of insurance policies, including to protect against event cancelation, natural disasters, terrorism, and other potential calamities. Not all of the insurance plans are in place yet, and it's unclear if they will offer enough coverage to fully protect the city.

At an L.A. City Council meeting last week, LA28 CEO Reynold Hoover said the Olympics are on track financially.

"We continue to feel very optimistic about our path forward," he told the council, referencing recent corporate partnerships with Google, Starbucks and an electric bus company to transport athletes and Olympics staff.

LA28 has an overall goal of raising $2.5 billion in domestic sponsorships to help fund its budget. Hoover, told the council that LA28 had so far raised about $1.7 billion of that — a figure he said was more money than Paris raised ahead of 2024.

Can the city of L.A. control costs?

The city has only limited ability to intervene in LA28's decision-making.

Zev Yaroslavsky, a former L.A. County supervisor who was on the City Council when it negotiated the 1984 Olympic Games, told LAist that the city doesn't have much legal leverage to dictate Olympics planning. Its main point of influence is political.

"The only leverage the city has is the bully pulpit," Yaroslavsky said. "City Hall and the LA28 committee have their reputations on the line."

L.A. City Council greenlit re-locating Olympic diving from Exposition Park to the Rose Bowl in Pasadena.

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In terms of legal leverage, the city's contract with LA28 requires that city appointees comprise at least one-sixth of its board of directors. In addition, LA28 gave the city council veto power over decisions to move a venue outside of the city. This summer, the city council greenlit LA28's plan to move Olympic diving from Exposition Park to the Rose Bowl Aquatics Center in Pasadena, when LA28 organizers said that change would save millions of dollars.

The city is also currently negotiating with LA28 to define what extra city resources Olympics organizers will need to pay for, such as additional police officers on the streets. That was supposed to be completed by Oct. 1, but the two sides haven't come to an agreement yet.

What role will the federal government play?

One factor outside of both LA28 and City Hall's control is President Donald Trump. The president has named himself the head of a federal Olympics task force and allocated $1 billion in federal funds for Olympics security. How those funds will be spent remains to be seen, but some of it is expected to flow to local and state law enforcement agencies. Hoover told the city council last week that LA28 is working with the Federal Emergency Management Agency on how that money will be dispersed.

At the council meeting, Councilmember Bob Blumenfield asked Hoover, LA28's CEO, to have a back-up plan in case federal funds don't come through, or are withheld.

"What I'm concerned about is while they're being cooperative now, at some point they're gonna do what they've done with funding to universities and others. And they're going to create a condition that we cannot meet," Blumenfield said of the federal government. "What protections do we have in place to protect us against that kind of last minute extortion?"

Hoover responded saying that no one at the White House or in the federal government has put a condition on support for the Games so far.

President Donald Trump signed an executive order to create a task force on security and other issues related to the 2028 Summer Olympic Games in Los Angeles.

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"Now, what the administration will do later, I wouldn't sit here and be able to say or predict what they would do," he said.

Another big ticket item organizers are expecting the federal government to cover is a giant fleet of additional buses to transport fans during the Games. Those buses will be key to hosting the mega-event, which will span three counties in Southern California. Metro is seeking more than $2 billion for that project. 

A spokesperson for LA28 told LAist that the federal government provided financial support for bus programs for the 1996 and 2002 Olympic Games, in Atlanta and Salt Lake City.

"Our public agency partners are requesting similar support for 2028," Jacie Prieto Lopez, LA28's Vice President of Communications said in an email. She also said that LA28 had a "positive partnership" with the federal government. 

How will the Convention Center factor into costs?

One city project that could throw a wrench in L.A.'s Olympic plans is the controversial $2.6 billion expansion of the downtown Los Angeles Convention Center that the City Council approved in September. The plans include connecting the West and South halls and adding an estimated 325,000 square feet of space. 

That project, which is not expected to be finished until 2029, broke ground last month. But the Convention Center is slated to host a handful of Olympic competitions come 2028. 

Construction will need to pause and restart for the Games, according to a report from the city administrative officer. 

L.A. City Councilmember Katy Yaroslavsky, chair of the budget and finance committee, estimated that pausing and restarting construction would cost the city $30 million. She voted against the expansion project.

If construction gets in the way of Olympics planning, organizers would have to find somewhere else to host a number of sports, including fencing, taekwondo and table tennis.

Ted Rohrlich, Kavish Harjai and Frank Stoltze contributed to this story.

MEXICO CITY — The Mexican army killed the leader of the powerful Jalisco New Generation Cartel, Nemesio Rubén Oseguera Cervantes, "El Mencho, " in an operation Sunday, a federal official said.

The official, who requested anonymity because they were not authorized to speak publicly, said it happened during a military operation in the western state of Jalisco.

It followed several hours of roadblocks with burning vehicles in Jalisco and other states. Such tactics are commonly used by the cartels to block military operations.

Videos circulating social media showed plumes of smoke billowing over the city of Puerto Vallarta, a major city in Jalisco, and sprinting through the airport of the state's capital in panic. On Sunday afternoon, Air Canada announced it was suspending flights to Puerto Vallarta "due to an ongoing security situation" and advised customers not to go to their airport.

The U.S. State Department had offered a reward of up to $15 million for information leading to the arrest of El Mencho. The Jalisco New Generation Cartel, known as CJNG, is one of the most powerful and fasted growing criminal organizations in Mexico and was born in 2009.

In February, the Trump administration designated the cartel as a foreign terrorist organization.

It has been one of the most aggressive cartels in its attacks on the military—including helicopters—and a pioneer in launching explosives from drones and installing mines. In 2020, it carried out a spectacular assassination attempt with grenades and high-powered rifles in the heart of Mexico City against the then head of the capital's police force and now head of federal security.

The DEA considers this cartel to be as powerful as the Sinaloa cartel, one of Mexico's most infamous criminal groups, with a presence in all 50 U.S. states where it distributes tons of drugs. It is one of the main suppliers of cocaine to the U.S. market and, like the Sinaloa cartel, earns billions from the production of fentanyl and methamphetamines.

Since 2017, Oseguera Cervantes has been indicted several times in the United States District Court for the District of Columbia.

The most recent superseding indictment, filed on April 5, 2022, charges Oseguera Cervantes with conspiracy and distribution of controlled substances (methamphetamine, cocaine, and fentanyl) for the purpose of illegal importation into the United States and use of firearms during and in connection with drug trafficking offenses. Oseguera Cervantes is also charged under the Drug Kingpin Enforcement Act for directing a continuing criminal enterprise.
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Hermon — Some shoppers heading into Fresco Market were lost in their phones, but when they momentarily looked up, they were greeted by a flap of brilliant green feathers and a cheery squawk. Phones were put away.

“Pepe! Hey Pepe! So good to see you!”

Perched on the shoulder of T.J. Gonzalez, Pepe the Parrot was in full greeter mode. Wide-eyed and seeming to almost smile as he surveyed the parking lot and his approaching public, Pepe did what he naturally does: make people happy.

A common sight at the Hermon market, near where they live, Gonzalez and Pepe can also be found at community centers, farmers’ markets and local events. They often take the Metro into downtown Los Angeles, Long Beach and other locations.

There’s no money asked, stressed Gonzalez, adding that Pepe simply adores the attention. “People want to see and talk with him more than me,” he joked as he cracked a nut and placed it in his mouth. On cue, the bird reached around Gonzalez’s mouth to retrieve it.

Michael Eagle-Hall of El Sereno is delighted to meet Pepe outside of the Fresco Market in Hermon.

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A mail carrier for 37 years before he retired, Gonzalez found Pepe, a red-crowned Amazon (flocks are often seen in Northeast L.A.) in July 2021. The chick had fallen out of a nest and was flailing on a busy street in San Marino. “He was like roadkill,” said Gonzalez, who watched cars drive over (without striking) the bird.

Gonzalez retrieved the parrot and looked for help, but wildlife rehabbers said they’d euthanize the bird since it had a broken wing. Gonzalez instead brought him to a vet and christened him Pepe.

Since Pepe could not fly, Gonzalez started walking him around the neighborhood. He soon discovered how kids and adults enjoyed interacting with the parrot. Pepe is also a social media darling, with more than 8,600 followers on Instagram.

Pepe is more of a squawker than a talker, but Gonzalez has learned how to art-direct photos of people and the bird, instructing them on how to hold their hands and arms best. “We just want that smile because that’s all that Pepe wants from you,” said Gonzalez.

Crews have now recovered the bodies of all nine backcountry skiers who were killed in an avalanche in Northern California earlier this week. It marks an end to what authorities on Saturday described as an agonizing five-day search and recovery operation complicated by intense winter storms northwest of Lake Tahoe.

"While we wish we could have saved them all, we are grateful that we can bring them home," said Nevada County Sheriff Shannan Moon during a Saturday news conference.

Until Saturday, authorities had not confirmed the death of a ninth victim, a skier who had been missing and presumed dead. Officials say their body was found near the eight other victims that have now been recovered. Authorities said avalanche hazards and weather conditions were too dangerous most of the week to search for the remaining victim or recover the bodies.

Four of the bodies were recovered on Friday, and the rest of the bodies were recovered on Saturday, all in the Castle Peak area where the avalanche – one of the deadliest in California history — struck. Six people from the group of 15 skiers survived Tuesday's disaster, the last day of a three-day backcountry ski trip. One guide and five travelers were among the survivors.

Helicopters with the California National Guard as well as the California Highway Patrol were used to hoist the remaining bodies from the mountain, officials said at the press conference.

On Friday, officials were able to use specialized techniques with the help of Pacific Gas & Electric to reduce the avalanche risk.

The ski trip was organized by Blackbird Mountain Guides, an outdoor tour company based in Truckee, Calif. Moon confirmed the identities of the victims. Three guides were killed: Andrew Alissandratos, 34, from Verdi, Nev.; Michael Henry, 30, from Soda Springs, Calif.; and Nicole Choo, 42, of South Lake Tahoe, Calif. The other victims, who had signed up for the group trip, are: Carrie Atkin, 46, of Soda Springs; Lizabeth Clabaugh, 52, of Boise, Idaho; Danielle Keatley, 44, of Soda Springs and Larkspur, Calif.; Kate Morse, 45, of Soda Springs and Tiburon, Calif.; Caroline Sekar, 45, of Soda Springs and San Francisco; and Katherine Vitt, 43, of Greenbrae, Calif.

The Sierra Avalanche Center classified the avalanche between a D2 and D3 on the avalanche danger scale.

"A D2 would take down a person. A D3 would take down a house, so it was right in between those. It was described by them as a football field length of a path of the avalanche," Sheriff Moon said on Saturday.

Multiple agencies are investigating.

"We are investigating the incident to determine if there were any factors that would be considered criminal negligence," Ashley Quadros with the Nevada County Sheriff's Office said in an email to NPR on Sunday. "It is a standard investigation. It is too early to know if criminal charges will be applicable, as the investigation is preliminary and remains active and ongoing."

The area will be closed to visitors for several weeks.
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