Tokyo Games sponsors pay $3.3 billion, but more still needed – other sports

Domestic sponsors have already contributed a document of $3.3 billion to assist pay for the Tokyo Olympics. That’s not less than twice as a lot as any earlier Games. But it’s still not sufficient.

Now they’re being requested to pay tens of millions more to cowl a number of the hovering prices of the one-yr postponement.

This comes as Japanese companies are battered by the COVID-19 pandemic, elevating doubts about re-investing in an Olympics that could be quick on followers, but lengthy on pandemic-associated guidelines to discourage vacationers, sightseeing and spending.

“We are in the process of asking for additional sponsorship (payments) from our partners,” organizing committee CEO Toshiro Muto stated final week as he detailed why the postponement will price organizers and Japanese taxpayers an additional $2.8 billion.

“The sponsors have expressed the willingness to contribute to the Games next year. But they have not specified an amount.” None of the the almost 70 home sponsors is saying “no”— not less than publicly — to an Olympics backed by Prime Minister Yoshihide Suga, and pushed by Japan’s highly effective promoting conglomerate Dentsu Inc., the official advertising and marketing company for the Tokyo Olympics.

Dentsu helped land the Olympics, lined up the sponsors, and stands to revenue with the Olympics opening on July 23, 2021.

Little arm-twisting could also be needed to maintain sponsors on board. Harmony and consensus are valued in Japan, and this stretches to the company world. It’s greatest illustrated by this Japanese saying: The nail that sticks up will get hammered down (Deru kugi wa utareru.).

Pulling off the Olympics is seen as a nationwide undertaking, a matter of honor and saving face. Doubts expressed behind the scenes are unlikely to trickle to the floor. Some sponsors would possibly supply further “in-kind” funds — contributions not made in money — but there was little open dissent and few contract particulars made public. In the top, any shortfall is prone to be made up by taxpayers.

Among the home sponsors is Japanese airline ANA, which posted losses of $1.8 billion by the primary half of the fiscal yr, and journey company JTB with losses of $750 million in the identical interval.

Also on board is the monetary providers firm Nomura, each Narita and Haneda airports, meals makers akin to Kikkoman and Ajinomoto, and the SkyTree tower. The Japanese media, charged with masking the Olympics, are additionally on in droves together with high newspapers Mainichi, Nikkei, Yomiuri, and Asahi.

Associated Press contacted a dozen sponsors and nearly all refused to remark. A Tokyo Gas spokesperson stated that organizers had suggested in opposition to chatting with the media.

One of few on-the document feedback got here from prompt noodle maker Nissin, which has registered 63% revenue progress just lately as folks caught at residence flip to fast meals.

“We will continue with our preparation toward a safe and secure Olympics while paying heed to further developments,” spokesman Tomonao Matsuo stated. He stated no resolution had been made on the renewal.

The Tokyo Olympics have change into very costly. A University of Oxford examine says they’re the costliest Summer Olympics on document.

The official price of placing on the Tokyo Olympics is $12.6 billion within the newest funds. But a authorities audit final yr stated it was most likely twice that a lot, and this was earlier than the added price of the delay.

This is all public cash apart from $5.6 billion from the privately funded organizing committee funds. Domestic sponsors make up about 60% of this earnings.

Polls in Japan present wavering help for holding the Olympics within the midst of a pandemic, which IOC President Thomas Bach tried to counter final month in Tokyo in conferences with organizers, politicians, and sponsors. Though Japan has managed the pandemic comparatively effectively, new infections in Tokyo hit a one-day document of 602 on Thursday. About 2,400 deaths within the nation have been attributed to COVID-19.

The squeeze on money-strapped sponsors is just half the story. The other half revolves round Dentsu Inc.

In essence, by unequalled connections in enterprise, politics and media, Dentsu helped land the Olympics, after which profited by lining up billions in home sponsorships. These are distinct from the 14 lengthy-time period International Olympic Committee sponsors, which embody three distinguished Japanese manufacturers — Panasonic, Toyota, and Bridgestone.

Analysts estimate Dentsu will get a 15% fee for signing up sponsors, and presumably more if it handles the promoting work.

Dentsu formally got here aboard with the organizing committee after the Switzerland-base IOC awarded Tokyo the Olympics in 2013. But Dentsu was concerned earlier than that.

Dentsu has acknowledged that it suggested the Tokyo bid committee about attainable “consultants” simply weeks earlier than the IOC vote in Buenos Aires, Argentina. One advisor Denstu evaluated as “extremely competent” was the Singapore-based Black Tidings Co., which obtained about $2 million from the Tokyo bid committee.

In an on-going probe, French investigators imagine the $2 million was channeled by the Singapore advisor to purchase the votes of IOC members. Tsunekazu Takeda, an IOC member and head of the Japanese Olympic Committee on the time, stop final yr. He denied any wrongdoing, but acknowledged signing off on the cost.

Similar bribery allegations encompass the IOC’s award of the 2016 Olympic to Rio de Janeiro.

The IOC, itself, pays comparatively little to carry the Olympics. It generates about three-quarters of its earnings from promoting broadcast rights, and depends on the host nation’s public coffers for the staging. The newest Tokyo organizing committee funds exhibits IOC contributions of $1.3 billion. This is about 10% of the official prices, but a much smaller share if outlays are being underestimated.

Dentsu declined remark for this text, saying it was solely a go-between for the businesses and the Tokyo organizing committee.

The Japanese company has longstanding relationships with the powers in world sports: FIFA, the governing physique of world soccer; FINA, the world swim physique; World Athletics, the monitor and discipline governing physique.

Haruyuki Takahashi, a former Dentsu government, is reported to have been paid tens of millions by Tokyo’s bid committee for lobbying IOC members. He’s additionally a member of the Tokyo organizing committee’s government board. IOC President Bach was requested in Tokyo concerning the reported funds of $8 million to Takahashi.

“With regard to Mr. Takahashi, we received confirmation that there was no infringement on the IOC rules,” Bach stated.

Dentsu returned to profitability after losses final yr, which got here primarily from its abroad operations, and has recorded 10 billion yen ($96 million) revenue for the primary three quarters of this yr.

“The agency clearly was, and still is, a media powerhouse,” stated Bob Dorfman, a artistic director and sports advertising and marketing analyst at Baker Street Advertising, who has labored at Dentsu. “My Dentsu pin was like a badge of honor. Wearing it earned me instant respect and influence.” Jeff Kingston, who teaches Japanese politics at Temple University in Tokyo, described Dentsu as a kingmaker. The firm’s identify is sort of by no means talked about in public by Tokyo Olympic officers, nor by high politicians or the IOC.

“Dentsu’s influence is pervasive from the newsroom to the prime minister’s office,” Kingston wrote in an electronic mail. “It is a driving force to keep the Olympics on track despite the grave risks.” (AP) APA APA

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Tokyo Games won’t confirm added costs reported at $3 billion – other sports

Organizers of the delayed Tokyo Olympics have declined to confirm extensively circulated experiences in Japan that the costs of the one-12 months postponement will likely be about $3 billion.

The estimates have been revealed within the final a number of days by a few of Japan’s high-circulating newspapers, the nationwide broadcaster NHK, and the Japanese information company Kyodo. All are citing related figures and unidentified sources near the video games.

“We are in the process of assessing the additional costs associated with the postponement of the games due to COVID-19 and therefore are not able to comment on any details at this time,” Tokyo organizers mentioned Monday in a press release.

The assertion didn’t problem any of the experiences. The Tokyo Games have gotten very costly. The official value of placing on the Tokyo Olympics is $12.6 billion. However, a authorities audit final 12 months mentioned it was most likely twice that a lot. All however $5.6 billion is public cash.

Tokyo mentioned the video games would value $7.3 billion when it received the bid in 2013.

The $3 billion for the delay solely provides to the totals. A University of Oxford examine revealed early this 12 months — calculated earlier than the postponement — mentioned Tokyo was the most costly Summer Olympics on document and the meter remains to be working.

The Yomiuri newspaper and Kyodo on Sunday detailed added costs of 200 billion yen, about $2 billion, to renegotiate venues leases, pay workers salaries, and canopy other operational expenditure.

NHK and the Asahi newspaper on Monday mentioned one other 100 billion yen, about $1 billion, was wanted for countermeasures towards COVID-19. This may embody the price of vaccines, fast testing, and numerous precautions to protect towards the coronavirus.

The reported value of the delay due to the pandemic is in step with repeated estimates of between $2 billion and $3 billion in Japan over the past a number of months.

The organizers, the Tokyo metro authorities and the Japanese nationwide authorities are anticipated to clarify added costs in December and element how they are going to be shared.

Organizers in October mentioned that they had discovered value-financial savings of about $280 million by simplifying and reducing some frills from subsequent 12 months’s postponed video games. This was about 2% of the official costs.

The International Olympic Committee has mentioned it will chip in about $650 million to cowl a number of the costs of the delay, however has provided few public particulars.

The Switzerland-based IOC is closely depending on income from promoting broadcast rights, which account for nearly three-quarters of its revenue.

The unprecedented postponement has put monetary strain on the IOC, nationwide Olympic committees, and worldwide sports federations that closely depend on the IOC for sustenance.

The IOC and organizers have been campaigning over the past a number of months to persuade sponsors and a skeptical Japanese public that the Olympics may be held safely in the course of a pandemic.

Domestic sponsors in Japan have paid a document of $3.3 billion to organizers, however there are experiences of some balking at additional funds through the pandemic-triggered financial slide.

The Olympics are to open on July 23, 2021, adopted by the Paralympics on Aug. 24. They contain 15,400 athletes and ten of hundreds of officers, judges, workers, VIPs, sponsors in addition to media and broadcasters.

Kyodo reported final week that the Japanese authorities might require guests from overseas to have personal medical insurance to cowl costs from any COVID-19 problems.

IOC President Thomas Bach, who was in Tokyo a number of week in the past, has mentioned a vaccine and improved fast testing would assist pull off the Olympics. But he cautioned they don’t seem to be “silver bullets.”

Athletes are anticipated to be intently monitored, held in quarantine-like circumstances, discouraged from sightseeing and inspired to go away as quickly as they end competing.

Some followers are anticipated at the occasions, however it’s unclear if many followers from overseas will likely be allowed to attend.

Japan has managed COVID-19 comparatively nicely, however has seen a spike over the past a number of weeks in Tokyo and elsewhere. Tokyo set a one-day document for brand spanking new infections on Friday with 570. About 2,000 deaths in Japan have been attributed to COVID-19.

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