Soaring Cost of Tokyo Olympics Gets IOC Attention

(ATR) The IOC tells Around the Rings it will make every effort to reduce the cost of the Tokyo Games after reports emerged they could cost $15 billion.

Japanese public broadcaster NHK reported that the Games may end up costing six times the initial estimate, attributing the massive hike to increasing materials and personnel costs and additional money needed for building temporary venues and infrastructure.

The $15 billion cost would make the Tokyo Games more expensive than both London 2012 and Rio 2016.

There's speculation in Tokyo that the resignation of a prominent businessman as a vice president on the Tokyo 2020 board of directors may be linked to the budget blow out.

IOC Olympic Games executive director Christophe Dubi acknowledged the rise in construction costs, telling ATR the IOC was ready to help Tokyo to trim costs where possible.

"They now have to face the reality that costs have risen… they face a situation that is not what they anticipated," he said.

"Anything we can further assist with, we will do the effort. We feel our experts can bring a lot into reviewing specifications and offer assistance there to reduce the impact of construction on the budget."

Dubi said the IOC was assessing the situation "with an open mind and see where we can bring expertise to help them in the next two years when there are final decisions to make on permanent and temporary structures."

Budget worries are the latest blow to Games preparations after the scrapping of the original Olympic stadium plan due to ballooning costs and the plagiarism scandal around the Tokyo 2020 logo. However, Tokyo 2020 has exceeded sponsorship revenue expectations and has locked down venues for 27 of the 28 sports on the program, with only football to go.

But Dubi rejected the suggestion that Tokyo organizers were getting behind in preparations.

"Things are more than quite right in Tokyo when you take a dashboard four-and-a-half years before the Games and all is green. We can reasonably say Games preparations are working really well."

Commenting on reports of soaring costs, Tokyo 2020 spokesman Masa Takaya told ATR: "Tokyo 2020 is still studying an initial budget plan and has never come up with a consolidated number like the one several media reported.

"Tokyo 2020 will keep working closely with our delivery partners, particularly with the Tokyo Metropolitan Government and the national government, to define financial scopes and roles of each organisation. We should be able to finally come up with the initial budget amount to be proposed to the IOC after the further discussions with those partners."

Along with the budget issues comes the resignation of Akio Toyoda resigned from the Games organizing committee to focus on a role engaging the Japanese business community to support the Olympics.

At a press briefing earlier Monday, CEO Toshiro Muto said Toyoda felt that his vice presidency of Tokyo 2020 would not be compatible with his role as chair of the Japan Business Federation's Committee on the Tokyo 2020 project, as the organizing committee will ask businesses for their assistance in the future.

According to Tokyo 2020, Toyoda "will lead the efforts of Japan’s business community to provide further support to the successful delivery of the Tokyo Olympics".

There's speculation that the resignation is a way for Toyoda to avoid public outcry should the rise in costs be confirmed,

A new executive board member to replace Toyoda will be appointed soon, with president of Panasonic Corporation Kazuhiro Tsuga tipped to get the position.

Reported by Mark Bisson

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