The Tokyo Olympics will need a rescue if the matches go ahead without spectators

The Tokyo Olympics will require a $ 800 million public bailout if the games are closed while organizers delay the decision on home spectators at the last minute.

Final budgets show that Tokyo 2020 organizers are still assuming full stadiums. With billions of yen spent on ticket sales being spent, a new subsidy from taxpayers would be the only way to fund refunds, according to the Financial Times analysis of the organizing committee’s accounts.

With the Japanese government deciding to continue and decide on the matches from July 23, the decision to allow local fans to enter the stadiums has become one of the biggest debates about the Olympics.

Speaking at the G7 summit in Cornwall, Prime Minister Yoshihide Suga stated that Japan was determined if the audience could.

“Considering the level of Covid-19 infections, we will decide [on capacity] in line with the numbers allowed at other sporting events, ”he said.

If the audience is completely or partially banned, the city of Tokyo will return the ticket once agreed subscribe to cost boarding delayed games.

The organizing committee will budget $ 668 billion ($ 6.1 billion) in revenue this year, from $ 90 billion ($ 822 million) in revenue sales, which accounts for about half of Tokyo 2020’s revenue. The rest is already public funding.

The balance sheet released by Tokyo 2020 last week showed a liability of 118 118.3 billion for the advances received. Most represent the revenue of the Japanese public, as they delivered their money almost two years ago.

Doctors and public health experts have recommended that Japan hold the Olympics without spectators avoid spreading Covid-19, but organizers and sponsors are disappointed to keep at least some fans to reap the return on investment.

Shigeru Omi, the government’s chief medical adviser on the pandemic, has called for avoiding a “festival atmosphere” at the games. Fans who celebrate and drink would lead to high-risk socialization that spreads the disease, he warned.

“If it is done, then the audience is not the only option,” Haruo Ozaki, president of the Tokyo Medical Association, said at a recent press conference.

Tokyo continues to report new 300-400 cases of Covid-19 every day and will remain in a state of emergency until June 20. Olympic organizers have postponed the decision on the spectators until the end of June, in the hope that the state of the virus will be there. improve.

Sponsors are enthusiastic being an audience since they were gifted tickets to the biggest moments of the games at competitions and other marketing events.

“It’s a big issue for sponsors whether they can allow the winners of consumer campaigns that started before the game last year to go,” said a marketing official who is advising how to manage games for several sponsors in Tokyo 2020.

“Most sponsors have already won a lot with their revenue campaigns. If these entries are canceled, they will suffer a great deal of reaction. “

Weekly newsletter

Scoreboard This is a brief information about the sports business that the Financial Times should read weekly. There you will find the best analysis of financial issues affecting clubs, franchises, owners, investors and media groups around the world. Register here.