All the international games have been postponed or canceled due to the spread of COVID-19 including Tokyo Games. The organizers of canceled or postponed game events face losses. For example, postponing the Tokyo Games will cost their organization around $800 million. The International Olympic Committee leaders estimated the amount recently. Thomas Bach, the President of IOC gave details of added expenses.
He also made a remote meeting with his executive board regarding this. Bach said they needed to make compromises and sacrifices as the Olympic movement as according to him “The Olympic movement is facing an unprecedented challenge,”. Furthermore, according to the committee, the total approximation of loss did not include the cost incurred by organizers in Tokyo.
The committee included a $150 million fund for national Olympic committees and the international federations that govern each sport. Many organizations are dependent on IOC for receiving significant payments at the time of the Olympics. Another concern is The Summer Games have been scheduled almost the same time as the Tokyo games due to COVID-19. This is another concern for IOC.
The committee thinks maybe the infrastructure is not enough to hold two big events including the shortage of Tokyo Venues. Hence, the whole organization needs to handle the new situation which has been emerged due to COVID-19 with determination, flexibility, and solidarity. As stated before, from the $800 million $150 million is the aid package. Rest $650 million will be spent on putting on the Tokyo Games for the next year.
The national Olympic committees, athletes and sporting federations have lost income as suspension of sporting events globally. This is the main reason for asking $650 million. However according to The Japan Time, “To the question of how is this $650 million to be spent, this is not clear at this point either.” Furthermore, the summer games are expected to face budget cuts.