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Trump speaks with Bach to express support for LA Olympic bid

07 December 2016

TOKYO (AP) — Calling Tokyo's proposed $20 billion budget unacceptable, International Olympic Committee vice president John Coates urged Japanese organizers on Friday to find ways to make the 2020 Olympics more affordable.

Los Angeles has promised to hold the 2024 Olympics on a shoestring budget, in a reversal of recent trends which have seen a huge blowout in the costs involved in staging the Games.

Coates made the comments after the third IOC coordination commission visit with the 2020 organizing committee came to a close after two days of sessions in Tokyo to hear updates of preparations for the games.

Coates warned that Tokyo's snowballing costs could scare off potential host cities considering bids for future Olympics.

Preliminary figures for Paris called for an infrastructure budget of $US4.5 billion ($A6.0 billion) and operational costs of $US4.8 billion ($A6.4 billion), with 95 per cent of the city's proposed venues either temporary or already in existence.

The budget has been heavily vetted over the past six months with several workshops and was finally submitted to the "Big 4" accounting firm KPMG, chosen by the City of Los Angeles to independently evaluate LA 2024's budget.

While KPMG identified "no significant findings" or causes for concern when conducting the review, they did offer Los Angeles 2024 with advice going forward and criticised certain parts of the budget.

In all, the projected $5.3 billion cost of hosting the Games is less than half the roughly $12 billion Brazil spent on the Rio Games in August.

Los Angeles Mayor Eric Garcetti meanwhile said in a statement that the budget represented a "fiscally responsible Games that provides only upsides -- economic, social and sporting -- for our city".

Bid leaders have also increased projected revenue to $5.3 billion, estimating they can cover all expenses through broadcast, sponsorship and ticket revenue.

Ticket sales projections are also up, listed at $1.47 billion Friday, an increase of $360 million from a year ago.

The bid's top revenue sources are domestic sponsorship ($1.93 billion), ticketing ($1.47 billion) and International Olympic Committee contributions from broadcasting ($855 million) and sponsorship ($453 million). The budget does not include security costs, which organizers expect to be covered by the federal government.

The 2014 Winter Games in Sochi, Russia, may have ranked as the most expensive ever at about $50 billion. The 2000 Games in Sydney and the Athens Games four years later have a combined $19.4 billion deficit.

IOC Vice President John Coates, center, speaks at the IOC debriefing meeting in Tokyo, Tuesday, Nov. 29, 2016.

"The IOC is not in a position to accept a budget of $20 billion", Coates said at a news conference.