Santa Monica is ‘very close’ to agreeing to host beach volleyball during the 2028 Olympics

Santa Monica officials say they are “very close” to reaching an agreement to host beach volleyball during the 2028 Summer Olympics, even though it could ultimately cost the city millions of dollars.

A 36-page study released Tuesday night outlined the risk of a net loss of $12.1 million, but officials saw an opportunity to recoup costs if the Games were financially successful.

The issue now heads to a city council meeting on Oct. 8 for discussion and public comment.

“We believe we are very close to addressing all outstanding issues,” City Manager David White said. “That is why we have a lot of confidence in it and we think this is a good time to stand before our council.”

Beach volleyball originated in Santa Monica and Hawaii in the early 20th century, so it makes sense that LA28, the private committee charged with organizing the Games, would want to build a temporary 12,000-seat stadium and practice courts on the sand north of the Santa Monica Pier.

Among other cities that have joined Los Angeles in hosting events, Long Beach and Carson quickly signed an initial – and binding – Games Agreement with organizers. Santa Monica has taken a more cautious approach after a year of negotiations.

White said his staff “wanted to make sure that our council and our community are really fully aware of what it means to be an events city.”

The process included commissioning a study by HR&A Advisors, a private consultant, to estimate the financial impact and identify the uncertainties associated with hosting a major event that is still four years away.

The report predicts that providing additional city services such as police, traffic control and waste collection during the Games could cost as much as $15.54 million. Some of that amount could be offset by $14.09 million in tax revenue and rental payments from LA28.

Still, the city would have an estimated net loss of $1.45 million.

If Santa Monica chooses not to host, consultants say, it could still receive $11.3 million in increased revenue from tourists attending the Games in neighboring communities. The cost in this scenario would only be $650,000.

“Taken together, these findings suggest that the choice to host Olympic beach volleyball translates into a net loss of approximately $12.1 million for the (c)ity,” the report said.

Officials must now weigh this risk against what they describe as “a truly distinctive honor” to be part of the Games. They see intangible benefits in generating civic pride and strengthening their city’s brand, even if the prospect of attracting an estimated 450,000 fans doesn’t mean much for an established summer destination.

“We’re already here,” said Assistant City Manager Susan Cline. “Normally we have a hotel occupancy of around 90% anyway.”

After next week’s public meeting – known as a “study session” – council members could vote later in the month. If approved, the original contract would serve as a starting point for further negotiations.

The two sides would negotiate how much LA28 will reimburse the city for its additional services. Such payments would be dependent on the organizers, who have pledged to pay for the Games through various revenue sources, and end up with a surplus.

The question is whether the Santa Monica Pier can remain open during the Games. Santa Monica also wants to make sure that the beach is then restored to its original state.

Officials expressed optimism that an agreement can be reached.

“Without a doubt, we believe we are the right location for beach volleyball,” White said. “And that’s why we worked so hard on this.”