TOKYO: The official cost of the postponed Tokyo Olympics has increased by 22 percent, the local organizing committee said Tuesday in unveiling its new budget.
In an on-line news conference, organizers said the Olympics will now cost $15.4 billion to stage. This is up from $12.6 billion in last year’s budget.
The added $2.8 billion is the cost of the one-year delay. Added expenses come from renegotiating contracts and measures to combat the COVID-19 pandemic.
The Olympics are to open on July 23, 2021. The Paralympics follow on Aug. 24.
Audits by the Japanese government over the last several years, however, show the costs are higher than officially stated and are at least $25 billion.
Tokyo said the Olympics would cost about $7.5 billion when the IOC awarded the games in 2013. A University of Oxford study earlier this year said Tokyo is the most expensive Summer Olympics on record.
Japanese government entities are responsible for all of the costs except for $6.7 billion in a privately funded operating budget.
“The IOC and TOCOG (Tokyo organizing committee) want the public budget to appear as small as possible not only to guard against public criticism, but also to not discourage future candidate cities,” Franz Waldenberger, director of the German Institute for Japanese Studies in Tokyo, wrote in a recent paper examining Olympic costs.
Waldenberger noted that the Tokyo city government and branches of the central government use the Olympics as “a window of opportunity to obtain additional” funding.
Organizers in October announced cost reductions of $280 million, cutting out frills including hospitality offerings. However, no cuts have been made to the sports program with a full complement of 11,000 athletes and tens of thousands of officials, judges, and sponsors expected to attend.
Decisions about fans and preventive measures for the pandemic are expected to be rolled out in 2021.
Japan has controlled COVID-19 better than most countries with just over 2,800 deaths attributed to the virus. But new cases have been rising for a month, adding to public skepticism about the Olympics.
In a telephone poll of 1,200 published this month by Japanese broadcaster NHK, 63 percent said the Olympics should be postponed or canceled. On the opposite side, 27 percent said the Games should be held. The poll was conducted on Dec. 11-13.
The IOC and local organizers have said the Olympics will be canceled if they cannot be held this time.
Local organizers are trying to recover some of the rising costs by coaxing more revenue from domestic sponsors. About 70 sponsors have already contributed a record of $3.3 billion, driven by Dentsu Inc. the marketing agent for the Tokyo Olympics.
The Nikkei newspaper reported last week, citing unnamed sources “familiar with the matter,” that 15 top-tier domestic sponsors will add an estimated $150 million to their contributions. It said Japan Airlines, the airline ANA, and the Tobu Skytower were considering contributions.
Nikkei is also a Tokyo Olympic sponsor along with Japan’s other leading newspapers Yomiuri, Mainichi, and Asahi. Several regional papers are also sponsors.
“We would like to increase revenue more than expected although it is challenging,” Gakuji Ito, the organizing committee’s chief financial officer, said.
Ito said insurance coverage might pay out up to $500 million to help cover increased costs.
All expenses that the organizing committee cannot cover will fall to the Tokyo Metropolitan Government, Ito said.
The budget shows the Switzerland-based International Olympic Committee is contributing $1.3 billion to cover costs of the games. Its contribution to Tokyo will not increase, Ito said.
Ito was asked if he would seek more money from the IOC.
“No, we are not thinking about it,” he replied.
The IOC’s finances are stressed. It generates 91 percent of its income from selling broadcast rights and sponsorships. The postponement of the Tokyo Olympics has stalled its revenue flow, increasing the importance of staging the Olympics in Tokyo.
The Beijing Winter Olympics are open six month after Tokyo closes, on Feb. 4, 2022.
The IOC is also under pressure to support national Olympic committees and international sports federations, many of which rely heavily on IOC contributions.
Official cost for postponed Tokyo Olympics up by 22% to $15.4 billion
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Official cost for postponed Tokyo Olympics up by 22% to $15.4 billion
- A University of Oxford study earlier this year said Tokyo is the most expensive Summer Olympics on record
Stokes calls on England to ‘show a bit of dog’ in must-win Adelaide Test
ADELAIDE: Ben Stokes has called on England to “show a bit of dog” in the must-win third Ashes Test against Australia on Wednesday after “raw” conversations following heavy defeats in Perth and Brisbane.
The tourists have crashed to consecutive eight-wicket losses and must snap a 17-match winless streak in Australia at Adelaide Oval to keep the five-match series alive.
They have made just one change with Josh Tongue replacing fellow quick Gus Atkinson, while off-spinning allrounder Will Jacks kept his place ahead of Shoaib Bashir.
England skipper Stokes said after the Gabba defeat that Australia was “no place for weak men” and admitted to “raw” dressing room conversations in the aftermath.
“We don’t do getting into rooms and have big things up on the screen. We have proper, meaningful conversations. What’s been said has been said,” he told English media.
“I’ve done all the talking over the last two days that I needed to. All that stuff’s done now, so it’s about what gets seen out on the field in Adelaide this week.”
Stokes was called “the most competitive person I’ve ever come across” by former England captain Alastair Cook last week and the 34-year-old allrounder demanded more fight from his team.
“It’s just about trying to fight in every situation that you find yourself in, understanding the situation and what you feel is required for your team,” said Stokes.
“Just look at your opposition every single time and show a bit of dog. That’s fight to me. You’re giving yourself the best possible chance if you’ve got a bit of dog in you.”
He cited England’s battling third Test win against India at Lord’s in July as an example of the grit he wanted to see in Adelaide, with the hosts winning by 22 runs deep into day five after a time-wasting row.
“That’s exactly what I’m on about,” he said.
“We were probably in a situation where we would have to be absolutely perfect to win that game and we were.
“The attitude and the mentality toward that specific situation is what gave us the best chance of winning that game.”
Since arriving in Australia, England have been under intense media scrutiny and faced hostile crowds at Perth and Brisbane.
Just five of the players used so far had previously played an Ashes series in Australia and Stokes acknowledged it had been confronting for the newcomers.
“Honestly, I think so,” he said. “Now I feel everyone has experienced that and probably at its highest level, so we all know what it’s going to be like.
“So for the next three games there isn’t going to be any of that ‘I didn’t expect this’ or ‘it’s the first time I’ve had this’.”
