If there are no spectators to continue the Tokyo Olympics, it will need help

If the Olympics are held behind closed doors, the Tokyo Olympics will require approximately US$800 million in public aid funds, because the organizers will postpone the decision of domestic audiences to the last minute.

Recent budget Shows that the organizers of Tokyo 2020 are still assuming that the stadium is full. “Financial Times” analysis of the organizing committee’s accounts shows that billions of yen raised from ticket sales have been spent, and the new taxpayer subsidies will be the only way to fund refunds.

The Japanese government decided to continue to host the Olympic Games from July 23 and decided Whether to allow local fans Access to the stadium has become one of the biggest controversies surrounding the Olympics.

Japanese Prime Minister Yoshihide Suga stated at the G7 summit in Cornwall that, if possible, Japan is determined to allow spectators to enter the venue.

“Considering the level of Covid-19 infection, we will decide [on capacity] According to the number allowed for other sporting events,” he said.

If the audience is banned in whole or in part, the city of Tokyo will refund the ticket after approval Underwriting cost Hold a delayed game.

Of the 668 billion yen (US$6.1 billion) revenue that the organizing committee budgeted for this year, 90 billion yen should come from ticket sales, accounting for about half of the commercial revenue for the 2020 Tokyo Olympics. The rest comes from public funds.

The balance sheet released by Tokyo 2020 last week showed that the prepayment liabilities received were 118.3 billion yen. Most of this comes from the ticket revenue of the Japanese public, who handed over their cash nearly two years ago.

Doctors and public health experts advise Japan to host the Olympics without spectators Avoid spreading Covid-19, But the organizers and sponsors are eager to retain at least some fans to get a return on investment.

Shigeru Omi, chief medical adviser for the Japanese government’s pandemic, urged Japan to avoid a “festival atmosphere” at the Olympics. Fans celebrate drinking He warned that this would lead to high-risk social activities that spread the disease.

“If it is to be held, then no audience is the only choice,” Haruo Ozaki, president of the Tokyo Medical Association, said at a recent press conference.

Tokyo continues to report 300-400 cases of Covid-19 every day and will continue to State of emergency Until June 20. Organizers of the Olympic Games postponed the spectators’ decision until the end of June, hoping that the virus situation would improve.

Sponsors are very enthusiastic There are spectators because they gave away tickets for some of the most important game moments in competitions and other marketing activities.

“For sponsors, a big question is whether they can allow the winners of the consumer events they started before the Olympics last year to participate,” said a marketing executive who is sponsoring several Tokyo Olympics in 2020 Provide advice on how to deal with the Olympics.

“Most sponsors have already profited a lot from ticket events. If these tickets are cancelled, they will face a lot of backlash.”

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About the Author: Agnes Zang