The 1984 LA Games Were the First Profitable Modern Games

When the Olympic Games came to Los Angeles in 1984, expectations were low. The two previous Games had left host cities financially battered; Montreal in 1976, for example, was left with debts that took decades to pay off. Many cities had grown wary of bidding for the Olympics at all. Yet, against this backdrop, Los Angeles managed to deliver something unprecedented: the first profitable modern Olympic Games.

Why did these games work?

1. No New Venues

Unlike most host cities, Los Angeles already had the infrastructure it needed. The Memorial Coliseum, UCLA, USC, and other existing facilities were repurposed for the events. Instead of embarking on an expensive building spree, organisers kept costs down by working with what was available. This was a sharp contrast to previous Games, which often required billions in construction projects.

2. Private Funding Model

The LA Games broke with tradition by avoiding large-scale government spending. Peter Ueberroth, the head of the LA Olympic Organizing Committee, championed a private-sector approach. Corporate sponsorships, television rights, and licensing agreements became the backbone of the budget. This shift not only avoided taxpayer burden but also introduced a new financial model that the International Olympic Committee (IOC) would replicate in the future.

3. Corporate Sponsorship and Exclusivity

The 1984 Games revolutionised Olympic marketing. Instead of offering sponsorships to hundreds of companies, organisers limited the number of partners, creating exclusivity and driving up the value of each deal. Coca-Cola, McDonald’s, and other big brands paid significant sums for the right to be associated with the Games. This concentrated sponsorship strategy generated huge revenues without oversaturating the market.

4. Broadcast Rights Boom

Television had become central to the Olympics by the 1980s, and the LA Games capitalised on this. ABC paid a record $225 million for broadcast rights, reflecting the growing value of live global sports coverage. This revenue stream became a cornerstone of Olympic financing for decades to come.

5. A Political Context

The Soviet-led boycott of the LA Games, in retaliation for the US boycott of the 1980 Moscow Olympics, might have threatened the spectacle. Yet, in reality, it worked in Los Angeles’s favour. The absence of some major competitors did not diminish public interest; instead, it reduced the logistical costs and political tensions. With enthusiastic US crowds filling venues and television ratings soaring, the Games thrived regardless.

The Legacy

The success of the 1984 Games showed that the Olympics could be both financially sustainable and socially impactful, setting a precedent that organisers still look to today.

As Los Angeles prepares once again to host the Games in 2028, competition is already fierce among stakeholders seeking to secure production rights and partnerships. Sanli Pastore & Hill, in collaboration with UGGC Avocats and Julinks, is uniquely positioned to support businesses aiming to seize this moment. By offering turn-key valuations, deal structuring, IP transactions, and cross-border expertise, SPH provides proven innovation and partnership opportunities to unlock value for bidders. With decades of experience in valuation and deal-making, SPH’s transatlantic consortium is ready to help shape the financial and operational legacy of LA 2028, just as the city once redefined the Games in 1984.

Get in touch with our team to find out more: info@sphvalue.com