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LA28 - The 2028 Los Angeles Olympics have been cast under a lasting shadow of moral disgrace. This shame could deepen to such an extent that it might even threaten the future of the Games themselves, and possible bankruptcy of the City of Los Angeles.
Casey Wasserman, the chairperson of the Los Angeles 2028 Summer Olympics, has been tied to the Epstein scandal and has become an obvious poisonous distraction to the Games themselves. The damage is lasting because the moral scandal involves harm to vulnerable people. It is a severe outrage, least forgivable, and most enduring.
The unfolding story is taking predictable turns: Public officials have applied pressure and called for Wasserman’s resignation; The handpicked board members of LA28 have seen no serious harm and have consolidated around Wasserman.
Sponsors, the financial backbone of the Olympics are not a secondary revenue source; they are central to the event’s business model.
Sponsors focus on brand safety, global reputation, and stable partnerships, carefully tracking risks and public sentiment. If sponsors are worried, the IOC responds quickly; if not, it stays inactive. Sponsors have more sway over leadership than politicians do through criticism, public pressure, and more importantly funding.
If sponsors fear the Games are becoming associated with scandal, they can trigger a leadership change. They will not allow the scandal to become a distraction, or the brand association to become risky. Most certainly, they do not appreciate consumer sentiment shifts. In the Wasserman issue this, and mostly this, is the most important variable sentiment.
Sponsors wield considerable influence, yet they remain largely unheard so far. In public life, association with Epstein poses significant reputational risks due to structural factors, not necessarily individual actions, or alleged misconduct.
Today, any association with Epstein does not just affect the individual, it affects the organization they lead, the brands that sponsor them, the public institutions connected to them, and the political individuals who interact with them.
As yet, news media sources are not reporting sponsor risks, nor any confirmed reputational injury to LA or the Games. But if you listen carefully, the voices are getting louder, and the sponsors are edgy. The sponsorships are $1billion short, you might see hesitation on the part of new sponsors and possibly withdrawal of existing. While the sponsors and the public are most sensitive to moral contamination, the IOC is only concerned about brand protection, not local politics.
LA28 is legally required to be privately funded without taxpayer outlays. This is the Tom Bradley model from the 1984 Games. However, if the Games run a deficit, it is certain that money will be diverted from city operations, that priorities will be shifted inside city departments, that long-term maintenance will be delayed, and capital planning will be reshaped. Streetlight outages, malfunctioning parking meters, broken sidewalks, potholes on city streets and deferred maintenance will continue mostly attendant.
Under the "Enhanced City Resources Master Agreement" between LA28 and the City of Los Angeles, reimbursements must be made only for services that go beyond what the city would provide on a normal day. The agreement was supposed to be signed on October 1,2025, but the LA28 and the City have come to a standstill. This delay does not bode well for the city`s financial position on top of the scandal engulfing Wasserman. The LA28 Games have been billed as a "no cost" event in a city with a perilous financial position. The City of Los Angeles is responsible for the first $270 million deficit. I am afraid this confluence of events spells financial catastrophe for our city.
And while the leadership of LA28 is paralyzed, the planned 2700 -bus fleet proposed for the Games is still not funded, a tall requirement that adds up to $2 billion. The Trump administration has not responded as of this writing on whether it will help fund the city`s transportation needs for the Games. A wasteful chase for $3.2 billion in federal funds for capital improvements that have a weak nexus to the Olympics has eaten up four years, a time interval that should have been dedicated to developing a coherent mobility plan.
More than money being the issue, attention will be displaced. The city’s focus will be drained and the struggle with our known key issues, homelessness, public safety, governance and administration fragmentation, will continue.
Of course, I support the Olympic Games and the spirit that emanates from the first recorded ancient Olympics which took place in 776 BC in Olympia, Greece. But I cannot ignore the measurable reputational damage to our city due to Wasserman’s involvement. These are dismaying signs.
The ancient Greeks believed athletic excellence was a form of moral excellence, that to compete was to honor discipline, courage, self-mastery, and that human achievements can be ennobling.
Despite the noble ideals of the Olympic Games, the ongoing scandal has overshadowed Los Angeles, diminishing its positive spirit. The controversy now outweighs tradition or praise, leaving the city under a persistent cloud. It can and must be corrected immediately. Wasserman can only do the honorable thing and that is to resign NOW!
(Nick Patsaouras is an electrical engineer, civic leader, and a longtime public advocate. He ran for Mayor in 1993 with a focus on rebuilding L.A. through transportation after the 1992 civil unrest. He has served on major public boards, including the Los Angeles Department of Water and Power, Metro, and the Board of Zoning Appeals, helping guide infrastructure and planning policy in Los Angeles. He is the author of the book "The Making of Modern Los Angeles.")
