A record budget for the Tokyo Olympics


The Tokyo Olympics 2020, postponed until next July, will be the most expensive in the history of the Summer Games, while its revenues will be vital to an Olympic movement weakened by a health crisis following the outbreak of the Corona virus.At the end of 2020, Japanese organizers reassessed the event’s budget at $ 15.4 billion, $ 2.8 billion more than previous estimates, due to the costs of postponing from the summer of 2020 to next July and health measures to combat the Corona virus. The Tokyo Olympics 2020 promises that it will be the most expensive in history, ahead of the London 2012 edition (12.2 billion euros), while the 2014 Sochi Winter Olympics in Russia have an absolute record of 17.9 billion euros, according to a study by the University of Oxford in Britain.
This file includes the operating budget, balanced at least in most versions since 1984, with the exception of the 1992 April Olympics, as well as construction and infrastructure development work. According to the organizers, the “budget related to the Olympic sites” is estimated at 7.5 billion dollars (6.3 billion euros), a cost that is fully covered by the authorities under the banner of local development in the medium term.
Most of the revenue comes from local sponsors ($ 3.3 billion), aside from the contribution from the International Olympic Committee ($ 1.3 billion through the merger of part of the TOP International Sponsorship program, or € 1.1 billion).

At the end of 2020, the Japanese organizers reassessed the event’s budget at $ 15.4 billion

Ticket sales are expected to generate $ 800 million, which is an unconfirmed estimate, especially after the ban on foreign audiences and the lack of specification of the number of local audiences that will be allowed to attend. On the other hand, about three quarters of that revenue (73%) comes from television rights, so that the economic load is focused on viewers on the screen instead of audiences on the stands, while the proportion of the international sponsorship program is 18%.
The International Olympic Committee keeps ten percent of the revenues to cover its operating expenses, and redistributes 90 percent, or about $ 5 billion, for the 2013-2016 cycle to fuel the Olympic movement for four years. This amount is used in particular to fund international sports federations, which are divided into five groups according to their importance: athletics, gymnastics and swimming receive about 40 million dollars, compared to 14 million for the modern five, rugby or golf.
The International Olympic Committee contributes half of the budget of the International Anti-Doping Agency and WADA (about 20 million dollars as a contribution in 2021), while the rest comes from governments.

Subscribe to «News» on YouTube Here


Please enter your comment!
Please enter your name here