LA28 is now seeking a new venue for Olympic beach volleyball after ending talks with Santa Monica city officials by mutual agreement. City staff were informed on Friday that it plans to host beach volleyball elsewhere.
According to a statement made by the of Santa Monica, "Despite good-faith efforts to reach a deal that would benefit both the Santa Monica community and work for LA28, ultimately the two parties were not able to agree to terms around community benefits, operational details and financial guarantees."
A financial analysis commissioned by Santa Monica officials found that hosting Olympic beach volleyball would bring in $14.09 million but cost the city $15.54 million, resulting in a $1.45 million shortfall. The same report projected that even without hosting the event, the city could still see $11.3 million in tourism revenue with just $650,000 in related expenses, yielding a net gain of $10.65 million.
An email obtained by the Daily Press that was sent by City staff said, "While we are extremely disappointed that we could not reach an agreement on key issues related to community benefits and impacts, financial risk, and pier operations, we remain optimistic about our ongoing relationship with LA28. We continue to be committed regional partners, and we're excited to support the Games through other key priorities like transit, sustainability, and broader regional planning efforts. Additionally, we have been actively pursuing several other Olympic-related opportunities in parallel to beach volleyball, and those efforts remain full steam ahead."
The original concept plan included a temporary 12,000-seat stadium north of the Pier, plus warm-up and practice courts together with operational and broadcast components in Beach Lot 1 North. Huntington Beach and Long Beach are being considered as alternatives to Santa Monica for hosting the tournament.
Councilmember Dan Hall issued a statement early Tuesday morning that said, “It is tough to close this door with LA28 ... I’d rather spend that money avoiding a bond or tax, paying down our unfunded pension liabilities, rebuilding our reserves and housing trust fund, repairing infrastructure, expanding services at our branch libraries, hiring police and code officers, or directly investing in tenant protections and affordable housing.
"Fortunately, as demonstrated last October during staff’s presentation to Council, we now stand a great chance to profit massively through pursuit of hospitality suites, block hotel bookings, and other Olympics-related events and productions," Hall said.
A Santa Monica City staff report from October 8, 2024, stated that “The financial uncertainties related to hosting beach volleyball are compounded by the lack of clarity on the reimbursement terms. Moreover, the Games Agreement also prevents Santa Monica from pursuing alternative revenue opportunities, and precludes traditional revenue sources from both City-hosted special events and privately hosted events by Pier lessees and other local businesses, unless approved by LA28. The potential legal risks associated with signing the agreement are significant, as it binds the City to hosting beach volleyball and limits flexibility to negotiate key terms after the Games Agreement is executed.”
The 2028 Olympic and Paralympic Games kick off in Los Angeles on July 14, 2028.
scott.snowden@smdp.com
