Corona Countermeasures Spike Costs for Tokyo 2020

(ATR) Tokyo 2020 organizers have yet to release an official estimate for the cost of postponing the Summer Games but that hasn’t stopped Japanese media from reporting what they’ve learned.

The Japanese news agency Kyodo, along with some of Japan’s largest newspapers and national broadcaster NHK, are all quoting various sources that the total cost will be about $3 billion.

Kyodo, quoting "sources with knowledge of the matter", reports $960 million of that will be to cover the costs of coronavirus countermeasures.

The tripartite group including Tokyo 2020 organizers, the Tokyo metropolitan government (TMG) and the Japanese national government are scheduled to present an interim report on planned countermeasures on December 2. They have held a series of meetings since September to design a plan to hold the Olympics safely despite the pandemic.

The almost $1 billion cost for countermeasures is in addition to the estimated $1.92 billion increase in the price tag for the Games themselves.

The increase in operating expenditures stems from securing games venues for a year later, equipment rental and storage fees and labor costs including the salaries of Tokyo 2020 staff.

Michael Payne, the former IOC director of marketing/broadcast rights, tells Around the Rings "it does seem a little bit eyebrow raising to see such enormous cost" tied to the delay.

"How is it possible to be $3 billion when normally an organizing committee full on for a Games would only be a maximum $4 billion?" he wonders.

Payne is not involved in any of the operational delivery for Tokyo 2020, but he did work with the Japanese organizing committee for Nagano 1998 when he was with the IOC. He says "they were very creative in putting all sorts of costs into the Olympic budget", including two new golf courses that were part of the cost for a new indoor venue for the Winter Games.

The IOC has said it will pitch in about $650 million to help cover the cost of the postponement.

Before the delay was announced, the official cost of putting on the Games was supposed to be $12.6 billion.

The so-called simplification of the Games, in which organizers and the IOC agreed in October to cut spending in 52 areas, is supposed to save $280 million.

Games organizers, the Tokyo metropolitan government and the Japanese government must still meet to determine how the additional costs will be shared. Currently, Kyodo reports both Tokyo 2020 and the TMG are each on the hook for a little less than 45 percent of the $12.6 billion, with the national government covering the remaining 11 percent.

Written by Gerard Farek

For general comments or questions,click here.

Your best source of news about the Olympics is AroundTheRings.com, for subscribers only.