Tokyo 2020 A Major IOC Financial Loss
The wasted accumulated costs to be settled by the International Olympic Commission (IOC) and host-country Japan combined, may well end up running into billions of U.S. dollars, the IOC has now said. The commission itself has set aside a preliminary US$800 million for various loans and payments arising specifically from the postponement of the 2020 Tokyo Olympics. The amount has been cited as ‘preliminary’ as the committee has said that it at this stage isn’t yet clear what the eventual sum of the extra costs to be paid will be.
The US$800 million set aside by the IOC only accounts for the commission’s portion of the monetary responsibilities related to the actual organisation of the Olympics, IOC president Thomas Bach said late last week, leaving Japan with possibly billions of dollars more in additional wasted costs and outstanding bills payable.
Some Of It Will Become Loans
The IOC also confirmed that of the $800 million earmarked for anticipated financial obligations, a sum of $150 million will be allocated toward making available loans to global sports governing bodies as well as at least 200 eligible national Olympic committees. Said institutions are currently experiencing cash flow shortages in various degrees and mostly as a result of the unexpected nature of the cancellation of this year’s games coupled with the long-term nature of the cash investments associated with putting together a successful Olympic Games.
The loan program will in fact be part-funded by the IOC and part-funded by Switzerland’s federal government and other state authorities. The program is furthermore being run by Switzerland’s federal government. As for how the remainder of the $650 million will be allocated, said allocation will be decided on and the information made available over the course of the coming months.
Too Early For Accuracy
IOC Chief Operating Officer, Lana Haddad, last week told the media that now is a little premature in terms of compiling an itemised list of all known and unknown costs. Haddad addressed the media via a conference call.
Regarding whether or not warnings issued by some public health officials about the Olympic Games possibly not being in a position to continue in Tokyo even as far in the future as 2021, it is Bach’s opinion that those trying to draw definite conclusions at this stage of the process, are basically putting the cart before the horse, as its impossible to make accurate projections that far ahead into the future.