Behind the debate over whether Casey Wasserman should resign as the 2028 Olympics chief over 20-year-old correspondences unearthed in the Epstein files is a fraught question that has long haunted the L.A. Games: Will there be enough money?
A growing number of California politicians are calling on Wasserman to step down over steamy emails between him and Ghislaine Maxwell, a longtime companion to Jeffrey Epstein, who was later sentenced to prison for luring minors to have sex with the financier. Wasserman apologized for the emails and said he knew nothing about the pair’s criminal behavior.
So far, the Olympics committee has backed Wasserman, with allies saying he’s a strong leader and prodigious fundraiser. His supporters say L.A. needs to keep him on the job in part because taxpayers are responsible for paying any cost overruns or budget shortfalls from the $7.1 billion Games.
The Olympics has a history of leaving host cities with big deficits and LA28 organizers have repeatedly revised their expenses upward.
Some politicians are skeptical that Wasserman’s role is essential to keep the finances on track, and worry continued publicity about the Epstein files could make some sponsors think twice before getting involved. In addition to sponsorships, the LA28 committee brings in money through ticket sales and licensing agreements.
Reynold Hoover, chief executive for the LA28 committee — the non-profit leading the Games — on Monday doubled down on LA28’s support for Wasserman, telling Reuters that sponsors aren’t concerned.
“I was at a meeting in Dallas with a potential sponsor — hopefully we’ll get them signed up — and it wasn’t even raised,” he said to Reuters.
Hoover also said that there is no discussion about replacing Wasserman.
By some measure, the 2028 Games is less of a fiscal gamble for L.A. compared to past Olympics. Organizers argue that they don’t need to build new structures because they will use existing buildings, including SoFi Stadium, Los Angeles Memorial Coliseum and Intuit Dome.
But there are still massive costs that need to be covered, including transportation and security. Given the city’s ongoing budget problems, L.A. could face financial catastrophe if LA28 can’t break even.
Wasserman is responsible for bringing in sponsorships that are the “lifeblood of the host committee,” said Chris Dempsey, a leader of the opposition to Boston’s 2024 bid for the Olympics.
“If he steps down, is there a person who can replace that skill set and those relationships?
“He’s probably uniquely positioned to do that and that’s a concern that the [LA28] board has to consider, the [United States Olympic and Paralympic Committee] has to consider.”
Revelations that the then-married Wasserman, 51, exchanged flirty emails with Maxwell in 2003 after taking part in a humanitarian trip to Africa with Maxwell, Epstein and others, have prompted a rush of Southern California politicians to call for Wasserman to step down.
He’s apologized for his association with the pair, which occurred years before her and Epstein’s crimes around sex trafficking minors were known.
Nevertheless, Wasserman earlier this month announced he would sell his talent agency, saying in a memo to his employees that he’d become a “distraction.”
Wasserman, chair of LA28, has close relationships with International Olympic Committee figures and is entrenched in the sports and marketing worlds. He’s also been involved with the planning effort for more than a decade after being picked by then-Mayor Eric Garcetti to lead the Olympic bid.
Wasserman last year told the Times that LA28 has contracts for about 70% of the projected $2.5-billion domestic sponsorship goal. Big-name Olympic sponsors include Google, Starbucks, Delta, and others.
Andrew Zimbalist, professor of economics at Smith College, who has been a critic of the Olympic movement in the past, questioned why the city would seek to replace Wasserman given his connections and long-standing work on the Games.
“He still has an important role to play that no one else can,” said Zimbalist.
Mayor Karen Bass is among those calling on Wasserman to step down, telling reporters last week that it’s “unfortunate” the LA28 board is supporting him.
According to city sources, who asked for anonymity because they weren’t authorized to talk to the media, Wasserman is not involved in the day-to-day planning when it comes to the city’s Olympics preparation. Bass and others work primarily with Hoover, COO John Harper and other LA28 employees.
Wasserman also isn’t known to be close to city staff or elected officials. “Casey’s relationship with the city termed out in 2022,” said the source, referring to the year that Garcetti stepped down as mayor.
The feeling among some at City Hall is that replacing Wasserman at this juncture wouldn’t be disruptive because the majority of sponsorship money has been raised and LA28 has grown into a large, independent company with some 600 staff members.
While LA28 is responsible for raising money and paying for the Games, the city will handle traffic, security, trash-removal and more. The city has still not come to an agreement with LA28 about who will pay for city services, sparking tension at City Hall.
Separately, L.A. is on the hook for the first $270 million in cost overruns for the $7.1 billion Games, while the state is responsible for the next $270 million. Any additional overruns will be paid by the city.
State Assembly member Mark Gonzalez, whose district includes downtown L.A, said Monday that past cheating allegations targeting Wasserman that were detailed in a 2024 Daily Mail story creates “another layer” of distraction around the sports mogul. Wasserman has dismissed the tabloid story.
Gonzalez said he’s concerned representatives for sponsors are not going to want to stand next to Wasserman at Olympics-related events.
There has been no public indication so far that sponsors are getting cold feet. But if they do, that could put Wasserman’s position in further jeopardy.
In 2021, Yoshiro Mori, the 83-year-old president of the Tokyo Olympic Committee announced his resignation after an uproar over sexist comments he made.
Miro told a media outlet that women have an “annoying” habit of talking too much as he justified why his Olympics board didn’t have more female members.
While many urged Miro to step down, it wasn’t until a major Olympic sponsor, Toyota, spoke out, that he left.
Jules Boykoff, a Pacific University professor and former Olympics soccer player, suggested a good barometer of Wasserman’s prospects is how sponsors react, and whether musicians and artists want to take part in programs around the Olympics.
“I look at L.A. and there is plenty of glitz and glamour to rally the donor class,” Boykoff said. “I don’t think he’s the only person to do the job — and now he may be one of the few who can’t do the job.”
Members of the International Olympic Committee gave a warm welcome to Wasserman, who was in Italy earlier this month for the Winter Olympics.
The executive committee of the LA28 board also determined that, based on the facts and his record at LA28, he should continue to serve as chair.
LA28 has not responded to multiple Times’ emails requests about its operations.
As a private entity, LA28 doesn’t have to reveal such information or divulge financial arrangements about its sponsorships.
The Wasserman drama highlights the opaque nature of the committee, said Dempsey.
“It has this independence even though it relies on city funding and city approval to happen,” said Dempsey.
“How many entities do you know that have a $270 million backstop from the city of L.A. but aren’t required [to be transparent]?”
