KEY POINTS
- The International Olympic Committee looks to Los Angeles 2028 to fix the struggling Olympic business model.
- Milan-Cortina 2026 faced significant logistical hurdles and a lack of major corporate sponsors.
- Future host cities will prioritize existing venues to reduce the massive costs of hosting the Games.
The 2026 Milan-Cortina Winter Olympics ended on Friday with a closing ceremony that signaled a major shift for the Olympic movement. International Olympic Committee leaders are now turning their attention toward Los Angeles 2028 to revitalize the brand. The Italian Games faced numerous obstacles, including high inflation and geographical fragmentation. These issues have forced the organization to rethink how it selects hosts and manages expenses.
For years, host cities have struggled under the weight of billions of dollars in debt. The Milan-Cortina event relied on venues spread across northern Italy, which increased travel costs and complicated logistics. Additionally, the Games failed to attract several top-tier global sponsors, leaving a gap in projected revenue. This financial strain has made many democratic nations hesitant to bid for future editions of the event.
The 2028 Summer Games in Los Angeles are being positioned as a “reboot” for the Olympic business model. California organizers plan to use only existing stadiums and arenas rather than building new structures. This approach aims to prove that the Olympics can be profitable and sustainable in the modern era. The IOC believes that the commercial success of the American market is vital for the long-term survival of the organization.
Television viewership also remains a primary concern for Olympic officials. Recent Winter Games have seen a decline in traditional broadcast ratings among younger audiences. The committee hopes to leverage the entertainment industry in Hollywood to create more digital-friendly content. By integrating social media stars and modern storytelling, they aim to recapture global interest.
Strategic changes are already underway for future Winter Games in the French Alps and Salt Lake City. The IOC has moved toward a “permanent host” concept where cities with reliable snow and infrastructure rotate duties. This strategy reduces the need for constant construction and environmental disruption. Officials hope this stability will attract more long-term corporate partners back to the movement.
Another challenge involves the rising costs of security and cyber protection. Recent geopolitical tensions have forced organizers to spend more on safeguarding athletes and spectators. These invisible costs often exceed the original budgets provided to the public during the bidding process. The Los Angeles team is currently working with federal agencies to streamline these massive expenditures.
The end of the Italian Games marks the beginning of a critical four-year window for the committee. They must demonstrate that the Olympics can still provide value to local taxpayers and global brands alike. If the Los Angeles model succeeds, it could provide a blueprint for future hosts in Europe and Asia. However, failure to evolve could lead to a permanent decline in the prestige of the event.
As the Olympic flag moves toward the United States, the pressure for financial transparency continues to grow. Fans and critics alike want to see a Games that prioritizes athletic achievement over corporate excess. The success of this transition will determine if the Olympics remain the world’s premier sporting spectacle.
