Cost-cutting planned for Olympics

TOKYO, Japan (AP):

TOKYO OLYMPIC organisers and the International Olympic Committee (IOC) said yesterday they will cut some of the extras out of next year’s postponed Games, an attempt to limit what is expected to be billions of dollars in added expenses.

International Olympic Committee member John Coates, who heads the inspection team for Tokyo, said in a teleconference that cuts were likely in areas such as hospitality and expensive “live sights” for public viewing.

“Do we need to make provisions for as much hospitality for the sponsors, the broadcasters and the national Olympic committees?” Coates asked, suggesting the coronavirus pandemic may dampen enthusiasm. “Many of the broadcasters may not have as big a presence here of advertisers because of the economic downturn.”

Coates talked about the difference between “must-have” features and “nice-to-have” accessories, which may be ruled out when the Olympics open on July 23, 2021.

Coates also made it clear that Tokyo organisers and the Japanese government will be absorbing the billions in added expenses.

He said the IOC would make “several hundred million dollars” in an emergency contribution to help struggling international sports federations and national Olympic committees stay afloat. The money is not destined for the Tokyo organisers and the Japanese government, which are preparing the Games.

NO SPECIFICS

IOC President Thomas Bach mentioned the contribution in a Sunday interview with a German newspaper, but was not specific about the recipients of the aid.

“We will not stand by and see our international federations collapse,” Coates said.

Japan’s obligation to absorb the added costs is stipulated in the ‘host city contract’ signed in 2013 when the IOC awarded Tokyo the Games. Neither the IOC nor Japanese officials are offering cost estimates, but media reports in Japan suggest an added bill of US$2 billion to US$6 billion (around J$275 billion to J$825 billion) on top of current spending.

Japan says officially it is spending US$12.6 billion (about J$1.7 trillion), but a national audit says the figure is twice that much. Whatever the total, all but US$5.6 billion (roughly J$770 billion) is public money.

The IOC was expected to pay out about US$600 million (J$82.5 billion) to federations this year, proceeds from the Tokyo Olympics. Some federations rely almost exclusively on IOC contributions.