California's State Legislature have agreed to underwrite any overruns incurred by Los Angeles 2028 ©Wikipedia

California will provide up to $270 million (£205 million/€224 million) in guarantees if Los Angeles 2028 goes over budget under new legislation. 

The measure, AB 132, follows a pledge from California State Assembly Speaker Anthony Rendon and California State Senate President Kevin de León to support Los Angeles' bid.

Last year, California had promised similar guarantees but that covered only the 2024 Olympic and Paralympic Games.

Los Angeles are due to be formally announced as the host city for the 2028 Games at the International Olympic Committee (IOC) Session here on Wednesday (September 13). 

Paris will be awarded the 2024 Olympic and Paralympic Games.

It was agreed at the Extraordinary IOC Session in Lausanne in July that a Tripartite Commission would be formed consisting of representatives from the IOC and both prospective host cities.

Shortly afterwards Los Angeles announced they would host 2028. 

Under AB 132, California's financial guarantee is $20 million (£15 million/€17 million) more than promised in last year’s legislation.

The difference is to cover inflation. 

Los Angeles will be officially awarded the 2028 Olympic Games at the IOC Session in Lima ©Los Angeles 2028
Los Angeles will be officially awarded the 2028 Olympic Games at the IOC Session in Lima ©Los Angeles 2028

Some quick work will be necessary, however, to pass the measure as the deadline for bills to pass both houses of the Legislature in California's capital Sacramento is next Friday (September 15). 

Los Angele 2028 is essentially the same as plans for privately-funded 2024 Olympic and Paralympics that includes, what officials claim, will be a balanced budget of $5.3 billion (£4.2 billion/€5 billion)..

It plans to use existing venues and previously approved infrastructure and was already approved by officials in Los Angeles.

Los Angeles 2028 have confidently predicted that the Games will not overrun and that they hope to replicate the success of the last time the city staged the event in 1984.

Then it made a profit of $150 million (£88 million/€112 million). 

Los Angeles 2028 are also receiving concessions from the IOC for hosting the later event.

This includes receiving $1.8 billion (£1.4 billion/€1.5 billion) contribution has the potential to exceed $2 billion (£1.5 billion/€1.7 billion) according to the evaluation of the Los Angeles Bid Committee when taking into account the estimated value of existing sponsor agreements to be renewed and potential new marketing deals.

They will also be exempt from other payments and will retain the option of selling domestic sponsorship in categories not covered by the IOC.

They will also be allowed to keep all surplus profit that they make.