The City of Los Angeles is the lead public guarantor, committing to spend up to $250 million to cover shortfalls. In 2016, the California legislature took action so that the Governor is empowered to negotiate the next $250 million in public backup, but only after the city backup money has been used first. LA 2024 also agreed to purchase a wide range of insurance policies to cover financial relief in the event of natural disaster, terrorism, event cancellation, as well as reduced ticket sales. The Games are expected to generate as much as they cost, with $2.5 billion coming in through sponsorships and nearly $2 billion earned through ticket sales. Average ticket prices for the Games will range between $13 and $457 (in 2016 dollars).[44]Â