Tokyo Olympics primed to lose $30 billion with no way to recoup losses According to a study by the University of Oxford, each Olympic Games has been 172% above the budget average since 1960. However, economists estimate that the cost of the Tokyo Olympics will be about 100 percent higher than the original budget. Most of them cannot be recovered.
A combination of moratorium, epidemic, and summer Olympics that far exceeded the budget before the 2020 Olympics broke out could save 80,000 taxpayers. This forces Japanese taxpayers to pay for the Olympics, which only one in ten wanted to host, in addition to the Tokyo Organizing Committee raising billions of dollars. ..
Andrew Zimbalist, an economist at Smith College and author of “Circus Maximus: The Economic Bet Behind the Olympics and the World Cup,” predicted the post that the Organizing Committee spent £ 1.5 billion on the Summer Olympics. .. The initial budget is far from billions of dollars.
Tokyo Olympics primed to lose $30 billion with no way to recoup losses Zimbalist expects the local committee to lose at least £ 1 trillion in Tokyo by 2020. Zimbalist and economist Victor Mathieson said there was no way to compensate for the loss, even if the organizing committee allowed fans.
“They’re going to get back $ 4.5 billion or $ 5 billion somewhere nearby, so there’s a big deficit,” Zimbalist said.
2020 olympic games
Tokyo was about 100 percent of the Olympic budget.
The one-year postponement of the Olympics alone will cost £ 3 billion from the facility, maintain the COVID-19 protocol, and require additional funding for public health measures. Due to the delay, the Organizing Committee delayed the sale of new contracts as condominiums with venues and dormitories in the Olympic Village, among other costs. Overall, Zimbalist estimates that the delay is worth £ 5 billion.
Mathieson, a professor of economics at the College of the Holy Cross and author of “Going for the Gold: The Economics of the Olympics,” said that the cost of organizing the “giant catastrophe” of the Summer Olympics is increasing. ,It is dangerous. Instead of canceling the Olympics, save it again.
These fanless Olympics will be one of the most frustrating to date
The IOC assigns host responsibilities to the local Organizing Committee. The Organizing Committee will cover the costs of maintaining health and safety guidelines, building the Olympic Village, renting or constructing stadium space.
All of this is likely to be paid through domestic sponsorship, licensing agreements, ticket sales and tourism growth gains. Fans have been banned from traveling abroad in Japan, tickets have been returned due to emergencies, and sponsors have left, so domestic sponsors are beginning to take responsibility in Tokyo before the record £ 1 billion spectator is cancelled. .. A game from horror.
The Organizing Committee needs enough money to continue the game. But according to Mathieson, ensuring that they were moving forward was the only priority for the IOC.
“The IOC has media rights and international sponsors, and that’s their income. Therefore, this year’s TV rights and international sponsor rights will add up to about £ 5 billion.” He said. So, strangely enough, despite the Olympic catastrophe, the IOC itself works with all sources of income.
The Tokyo Olympics are becoming more and more unpopular among the Japanese.
Even the big stars haven’t got Covid-1 or left the Olympics altogether, but the IOC needs enough athletes to compete, so it can’t affect what it gets. can not. Instead, the local organizing committee needs star power to profit from ticket sales.
“Steve Curry and LeBron James, led by the US basketball team, or a local high school team in Honolulu, don’t sell tickets for the game, so there’s no difference at this point,” Mathieson added.
Former Olympic athletes say the Tokyo Olympics are “around the corner”
A spokesman for Tokyo 2020 said, “Ticket revenues are expected to decline significantly,” but the Organizing Committee said on the amount of money expected to be lost, the number of tickets sold, and the prices of those tickets. I avoided commenting. Mathieson believes the Commission has lost 11 billion in ticket revenue.
“The IOC doesn’t care if there are no more fans (at the Olympics), they really don’t care about political turmoil, they don’t care about the health risks of the people of Tokyo. They watch these events on TV. I’m thinking of watching it, but since I receive all the money from the TV and don’t bear the political costs, there’s nothing else wrong.