California lawmakers passed legislation in 2017 agreeing to cover up to $270 million of losses related to the Olympic Games after L.A. covers the first $270 million should a deficit occur. That legislation directed the governor to execute a contract solidifying the state’s commitment.

But more than eight years later, that contract hasn’t been inked by the governor’s office.

The state’s guarantee is of potentially huge importance to the city of Los Angeles, which took on a huge risk when it agreed to be the financial backstop for the Olympics in order to secure the host city bid. L.A.'s financial exposure is essentially unlimited. If LA28, the private nonprofit running the games, winds up with a deficit exceeding $540 million, the city is responsible for the rest.

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