For the first time in 15 years, the Grammys will be held in New York. But it's coming at a greater cost than the Recording Academy expected.

The show costs an extra $6- to $8 million to produce in New York than in Los Angeles. That's because hotels, transportation and labor are more expensive in New York.

The Recording Academy president says the city has not made up for the cost difference and sponsorships were not as big as expected.

City officials say all financial obligations have been met.