The coronavirus pandemic has spilled water on various sporting events during 2020. The Olympics were also set to take place this year in Tokyo, but after knowing the severity of the pandemic, games were postponed to 2021. The delay in events is surely going to have financial implications.
According to reports in Japan, the organizing committee of the Tokyo Olympics has predicted that extra investment in the region of $1.9 billion will be needed to stage events next year. This prediction has been made by taking into account all the logistics needed to host the Olympics games. The total expenditure is likely to get even bigger if the cost of implementing measures to manage coronavirus is also included.
In October, IOC and Tokyo Olympics organisation had come up with approximately 52 various methods that can help in cost-cutting. These methods and ideas were expected to save close to $250 million in expenditures during the event.
The reports in Japan also confirmed that the Japanese Government, Tokyo Metropolitan government, and organising committee are set to decide the breakdown of the extra cost each party will pay for games in December.
Along with the Olympics, other big sporting events are also likely to face similar issues next year. Euros and Cricket T-20 World Cup was also postponed to 2020, while Wimbledon 2020 was all together cancelled due to the pandemic. All these events may also lose revenue from sponsors as various brands are looking to renegotiate terms due to losses faced during the pandemic. The organizing committees of these events will be hoping that fans will be allowed next year to at least get some sort of revenue during games.