Thursday, October 28

The Tokyo Games increase your budget by 21%

The Tokyo Olympics will cost $ 15.4 billion, according to the latest version of the budget announced today by the organizers, which represents a increase 21% compared to the previous calculation due to the costs of the delay of the competition and the measures anti-COVID-19.

The organizing committee of the Games made the figure public this Tuesday during a press conference at the end of a meeting of its executive committee.

The additional cost that the Games will have after deciding last March its delay until the summer of 2021 due to the pandemic will thus amount to about 2,800 million dollars, which will go mainly to the renegotiation of contracts for the new dates and prevention of covid-19 infections.

The additional costs associated with the postponement, such as the extension of the rental of venues or extra labor expenses, exceed 1,900 million dollars, while about 930 million will be allocated to measures to prevent contagion between athletes and spectators.

“We have tried to minimize additional expenses and to simplify the event as much as possible,” the CEO of the organizing committee, Toshiro Muto, said at a press conference.

Growing discontent

The head of the organizing committee also stressed the importance of “the citizens of Tokyo and Japan understand what the funds are going to”, after several polls have shown a growing dissatisfaction among the Japanese with the holding of the Games in the new Scheduled dates, starting July 23, 2021.

Muto also defended that the additional expenses “can be seen as a positive investment” aimed at carrying out the Games “in a very harsh environment” and with the aim that the global sports event “represents the first model on how to live with the virus” .

Most of the additional costs (about 1,000 million dollars) will be assumed by the Government of Tokyo, followed by the Executive of Japan, which will contribute 700 million more dollars.

The rest of the additional expenses will come from a private fund financed by the organizing committee, and for which it is expected to raise more money from the sponsors.

Contact with sponsors

Muto pointed out that the committee is still in negotiations with the 68 Japanese companies that had pledged to support the Games on the dates initially planned.

“We are asking the sponsors to extend their contributions, but we have not yet reached a conclusion,” said the Tokyo 2020 official, who noted however that the companies “show a positive predisposition to expand their support.”

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Likewise, the IOC’s contribution of about 800 million dollars appears unchanged in the latest version of the budget, an amount that had previously been increased by the international body to finance the transfer of the marathon and march events from Tokyo to Sapporo (north) to avoid the intense summer heat.

The Tokyo Olympics will run from July 23 to August 8, 2021, and will be followed by the Paralympics from August 24 to September 5.

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