The economic account of the Tokyo Olympics postponed “not enough”

International Olympic Committee President Bach admitted for the first time this week that if the Tokyo Olympics, which was postponed for one year, could not be held in 2021, it would be canceled. Behind this, the “endless” economic account brought about by the Olympic delay has undoubtedly become an important reason that cannot be bypassed. In late April, the International Olympic Committee and the Tokyo Olympic organizing committee had a problem with the presentation of additional expenses.

The latest statement of the International Olympic Committee said that a maximum of 0.8 billion US dollars (1 US dollar is about 7 yuan) will be allocated to deal with the impact of the epidemic including the extension of the Tokyo Olympics, and the Tokyo Olympic organizing committee said it is still accounting for the cost.

The international single sports federation received economic assistance from the International Olympic Committee and the local government, but its opaque financial system was bombarded by the International Olympic Committee senior member pound. In addition, some Olympic global partners are also experiencing difficult times under the epidemic.

The expression of additional expenses is controversial.

When the joint decision to postpone the Tokyo Olympics was made two months ago, IOC President Bach and Japanese Prime Minister Shinzo Abe did not discuss the extension cost of the Tokyo Olympics.

But on April 20, the International Olympic Committee said on its official website about the extra cost of the Olympic Games extension: “Japanese Prime Minister Shinzo Abe has agreed that Japan will continue to pay according to the terms of the agreement reached at the 2020 Olympic Games. The International Olympic Committee will also continue to assume the part that should be responsible. For the International Olympic Committee, the issue of the payment of hundreds of millions of dollars in extra fees is already clear.”

these words caused dissatisfaction with the Tokyo Olympic organizing committee. A spokesman for the Tokyo Olympic organizing committee said: “The International Olympic Committee should not express the above views on the website in the name of the prime minister. The Tokyo Olympic organizing committee believes that the International Olympic Committee’s statement is very inappropriate. I can clearly say that this statement is not within the agreement reached between us. We have asked the International Olympic Committee to delete the above statement.”

the International Olympic Committee soon updated its statement. In the updated Q & A released on April 21, Abe was no longer mentioned. The updated statement is obviously different from the old version: “The Japanese government has reiterated its readiness to fulfill its responsibility to successfully host the Olympic Games, and the International Olympic Committee has also stressed its commitment to successfully host the Tokyo Olympic Games in 2020.”

$0.8 billion is not a full stop

on May 14, after the remote meeting of the executive committee, the International Olympic Committee confirmed that it would spend up to 0.8 billion US dollars to alleviate the difficulties brought by the epidemic to the Olympic movement. Among them, a maximum of 0.65 billion US dollars will be used to pay for the organization costs caused by the Olympic extension, and another 0.15 billion US dollars will be distributed to the international single Sports Federation and the National (regional) Olympic Committee.

A day later, the Tokyo Olympic organizing committee said frankly that the additional costs that Japan needs to bear are still being accounted. “We are still in the process of strict evaluation, and now it is not enough to make an estimate.” The chief executive officer of the Tokyo Olympic Organizing Committee, Wu Fuko, said that he did not know the breakdown of the $0.65 billion that the International Olympic Committee assumed for the Tokyo Olympics, and did not know how the money would be used.

Whether it was the first release on the official website on April 20 or the official announcement on May 14 of the maximum amount of 0.8 billion US dollars in aid, the International Olympic Committee is very active in determining its own economic burden as soon as possible. The Japanese side has not announced additional costs.

Yoshiro Mori, chairman of the Tokyo Olympic organizing committee, said on April: “At present, it is not certain how much extra expenditure will be increased. At first, some people predicted that it would be 400 billion yen (1 yen is about 0.06 yuan), while others said that it would be 500 billion yen, now the organizing committee and the International Olympic Committee are also led by these rumors. In fact, all parties need to sit down and carefully calculate how much they need to increase.”

more closely protected than nuclear secrets

A total of 33 major events in the Tokyo Olympic Games are also facing a series of influences: it is not known when their respective events will really restart, the Tokyo Olympic qualifying tournament and the World Championships and other competitions need to be re-adjusted. More importantly, some individual federations are facing cash flow difficulties without “Olympic dividends.

Fortunately, the International Olympic Committee provided 0.15 billion US dollars, and the Swiss federal government also agreed to work with the International Olympic Committee to provide interest-free or low-interest loans to the international single Sports Federation in Switzerland.

After the Rio Olympics four years ago, the international single sports federation received a total dividend of about $0.54 billion. These funds are distributed according to the scale of sports and the audience.

Andrew Ryan, director general of the international sports federation association of the Summer Olympics, said that the $0.15 billion is now an advance for the Tokyo Olympics dividend. In addition to the International Boxing Federation, which has been suspended from management qualifications, the other 32 federations will get a share.

Although the International Federation of individual sports frequently complained, pound, a senior member of the International Olympic Committee, was outspoken. He believed that the federation’s financial system lacked transparency and was even more closely protected than “nuclear secrets”, if you want to get funding from the International Olympic Committee, first of all, your own finances need to be “clean and transparent”.

At present, some federations have disclosed their Accounts and Audit statements, but institutions such as the World Association of Athletics have not published them.

Pound said bluntly, “some Confederations rely more and more on the dividends of the International Olympic Committee. You can rely on the Olympic Games, a pie falling from the sky, to cover up your own problems. The International Olympic Committee must also be able to do something, because we have been preparing for a rainy day in recent years, but you must be clean and transparent in your financial situation, which was more closely protected than nuclear secrets.”

the International Federation of Sports federations for the Summer Olympics responded that the accusation was “outdated,” and its director general Ryan said that in the agency’s investigation of 31 federations, twenty-five audit accounts have been released.

Ryan said that since the Sydney Olympics in 2000, the dependence of the international single sports federation on Olympic dividends has been greatly reduced. The average proportion of dividends in the income of the Federation for the Rio Olympics dropped to 33%. At that time, 15 of the total 28 federations accounted for less than 25% of their respective income, there are still 4 below 50%, only 3 accounting for more than 75%.

Olympic global partner Ice and Fire

lana Haddad, chief operating officer of the International Olympic Committee, admitted that due to the epidemic and the delay of the Tokyo Olympics, the time for Olympic global partners to pay the sponsorship amount may be postponed. However, this has not had much impact on the International Olympic Committee, and the sponsors are still “going all out”.

During the period from the Pyeongchang Winter Olympics in 2018 to the Tokyo Olympics in 2020, there were 14 global partners. According to reports, this may bring more than $2 billion to the IOC during this period.

Affected by the epidemic, the days of some global partners are not easy. For example, Aibiying, a newly signed short-term rental platform for residential quarters, said in early May that the number of global tourists had dropped sharply due to the epidemic, and about 25% of them would be laid off. Toyota Motor Corporation of Japan expects operating profit to plummet by 2020 in fiscal year 79.5%.

However, some global partners have not been affected. Alibaba Group announced earlier this month that its full-year and fourth-quarter results in fiscal 2020 fully exceeded expectations. U.S. consumer goods giant Procter & Gamble announced last month that net sales of its products have jumped in the near future.

According to the latest forecast of Two Circles, a British sports marketing data analysis company, the cost of global sports sponsorship rights will drop by more than US $17 billion from last year, down 37% from the same period last year.

The forecast said that the epidemic had suspended a large number of new sponsorship contracts, and many existing contracts had also ended due to company spending cuts.