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sports

Tokyo Olympics must firm up $3.3 billion in sponsor income

16 Comments
By STEPHEN WADE

Local sponsors have chipped in a record $3.3 billion to support the postponed Tokyo Olympics.

That's at least two times more than any previous Olympics, and it amounts to almost 60% of the income for the privately funded operating budget. Another 14% of the income is budgeted from ticket sales, which could be in jeopardy with empty venues a possibility because of the coronavirus.

With the games delayed for a year, sponsors will be asked to sign up again. Tokyo spokesman Masa Takaya said talks would begin next month.

“We are planning to start sitting together with those companies, including the arrangement and content of the contract, in the very near future,” Takaya said this week in an on-line briefing with reporters.

A poll published earlier this month by Japanese broadcasters NHK said two-thirds of sponsors are undecided about extending for another year.

Sixty-seven companies have signed up as local sponsors for the Olympics or Paralympics, most lined up by Dentsu Inc, the giant Japanese advertising agency that serves as the exclusive marketing agency for Tokyo 2020.

Tokyo organizers also say they have to re-negotiate contracts with 11 so-called TOP sponsors, who also have long-term contracts with the IOC.

The Japanese newspaper Asahi reported this week, citing unnamed sources, that organizers will be asking for "more sponsor fees payments.” This could face opposition, with many companies struggling with the pandemic and a loss of revenue.

Organizers cannot afford a drop off in revenue. Local estimates suggest the delay will cost $2 billion to $6 billion.

The Switzerland-based International Olympic Committee says it will pick up $650 million to defray the cost of delay. The rest is on the local organizing committee, and various levels of Japanese government.

Governments are picking up the vast majority of the costs for Tokyo. A government audit report put the overall cost at about $25 billion.

Organizers and the IOC say they are hoping to cut costs next year by “downsizing and simplifying.” They have yet to offer concrete examples nor list the amount of money saved. Suggestions are rumored to be reducing the torch relay and combining the opening and closing ceremonies for the Olympics and Paralympics.

“If additional spending is being asked for, it is possible the discussions will become difficult,” the Asahi said. It suggested Japanese companies, which will be under enormous pressure to support an Olympics on home soil, may wind up giving merchandise instead of cash to reduce the burden.

“We are making our utmost effort to look into other potential partner companies,” Takaya, the spokesman, said.c

© Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

©2020 GPlusMedia Inc.


16 Comments
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Absolutely disgusting, immoral and unethical for an organisor to even contemplate to ask for more money from sponsors to an event the organisers have decided to postpone. If anything, these sponsors have the right to reimbursements or compensation for the delay. Seeing the particular circumstances asking the sponsors not to ask compensation is correct and I am sure all would agree.

The torch relay should not be expensive at all and has special sponsors, saving on that is unnecessary although reducing it in size makes sense, it has become a ridiculously stretched out project.

Dentsu once again shows it’s greed and has learned nothing from its recent scandals or finds itself above the usual rules and outside of moral obligations. They should be making the rounds of sponsors to bow and apologize for the delay, ask for understanding NOT for more money.

the delay does NOT require a lot more money it requires expertise and professional management from the organisors

9 ( +9 / -0 )

Sixty-seven companies have signed up as local sponsors for the Olympics or Paralympics, most lined up by Dentsu Inc, the giant Japanese advertising agency that serves as the exclusive marketing agency for Tokyo 2020.

The marketing arm of the LDP reveals itself as the spawn of Satan yet again.

5 ( +6 / -1 )

Anything involving Dentsu as usual involes massive costs little return and a dumbing down of all they touch.

11 ( +11 / -0 )

"Sixty-seven companies have signed up as local sponsors for the Olympics or Paralympics, most lined up by Dentsu Inc, the giant Japanese advertising agency that serves as the exclusive marketing agency for Tokyo 2020." Um....lined up by Dentsu? That means that Dentsu is receiving brokerage fees to get these companies "lined up" to sponsor yes? And how much exactly is Dentsu themselves putting on the table as a sponsor?

9 ( +9 / -0 )

I doubt they’ll be able to get a lot from sponsors. They are all tightening their belts now and probably don’t want to invest in an event that is likely to be as sparsely populated as a Trump rally in Tulsa.

3 ( +4 / -1 )

Smells of corruption

6 ( +6 / -0 )

Organizers and the IOC say they are hoping to cut costs next year by “downsizing and simplifying.”

I still say the best way to "downsize and simplify" is to just cancel the damn thing. Throwing good money after bad.

8 ( +8 / -0 )

delayed for a year

you mean cancelled forever, refund the money NOW!

2 ( +3 / -1 )

Japanese corporates are gaga about the Olympics and are willing to do whatever the state tells them. They're willing to take a massive financial hit for the sake of the pride of the nation. It's an odd attitude in a developed country in this day and age.

5 ( +5 / -0 )

It's an odd attitude in a developed country in this day and age.

And it's why despite simple logic and common sense, they'll press on with inevitable failure. It's marvelous to behold.

5 ( +5 / -0 )

Sixty-seven companies have signed up as local sponsors for the Olympics or Paralympics, most lined up by Dentsu Inc, the giant Japanese advertising agency that serves as the exclusive marketing agency for Tokyo 2020.

Shouldn't it say STRAIGHT ARMED by dentsu…..

3 ( +3 / -0 )

Why are the companies not identified in the article?

1 ( +1 / -0 )

The Tokyo 2020 games will become the most expensive games that never happened.

$25 billion.

2 ( +2 / -0 )

Japanese corporates are gaga about the Olympics and are willing to do whatever the state tells them. They're willing to take a massive financial hit for the sake of the pride of the nation. It's an odd attitude in a developed country in this day and age

Exactly, perfect analysis.

It is One Team, cost is not an issue

With a well oiled printing press.

2 ( +2 / -0 )

Sounds like politics wants to protect another company, a bit like we saw with Nissan. We're past the honor stage. What if the second wave hits at that time, or something, who's going to foot the bill then?

0 ( +0 / -0 )

zichiToday  12:41 pm JST

The Tokyo 2020 games will become the most expensive games that never happened. 

$25 billion.

..With many of the world's athletes not attending.

0 ( +0 / -0 )

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