Part 2: Huge profits
In that context, the fact that Japan is still determined to organize the Tokyo Olympics received mixed responses.
The postponement of the Olympic Games will have a significant impact on Japan’s economic growth as more businesses have invested in restaurants and tourism activities to prepare for a large international influx. It is estimated that before the outbreak of COVID-19, Japan could welcome 33 million visitors in the year hosting the Olympics.
The host country, mainly private businesses, has also invested 10 trillion yen ($ 9.2 billion) in building sports complexes and infrastructure for the Olympics. Billions of dollars have been transacted in global and local funding packages. The most hooked donors are known as the “Tokyo 2020 Gold Partnership”, the highest of the three funding levels regulated by Japan.
More than a million Japanese will be recruited for Olympic-related activities. Economists also estimate that the long-term returns from investments in venue and infrastructure could reach $ 225 billion.
Olympic is a global sports brand with huge profits that include copyrights of television, reportage, documents, publications, rights to use logos and trademarks. The change of the organization time will greatly affect the brand exploitation contracts.
NBCUniversal paid more than $ 1 billion to get the right to broadcast the games at the 2020 Tokyo Olympics. Earlier this month they sold more than $ 1.25 billion in advertising for the Olympics, a record. Although the postponement or cancellation of the Olympics would be a hindrance to the media companies, it was not a disaster. Comcast, the parent company of NBCUniversal, has purchased a comprehensive insurance package in case the Olympics are postponed or canceled.
From another point of view, the failure of the Olympics to go as planned is also undesirable for the athletes themselves, especially in less popular sports and participating in the Olympics is the best chance to change their lives.
Many athletes from lesser-known sports went into debt just to fulfill their Olympic dreams, with more than 100 athletes setting up personal fundraising sites in the US. An American female boxer recently revealed that the US Olympic and Paralympic Commission cost her just $ 300 per month, equivalent to about $ 9.67 per day.
The timing of countries in control of the pandemic will greatly affect how the 2020 Tokyo Olympics will play out. Athletes need at least 3 weeks to “warm up” before participating in the Olympics. As such, only sports teams from the countries that controlled Covid-19 before July are truly ready for the Olympics.
Even if the Olympics take place at the scheduled time, things can still be modified so that certain countries do not participate or certain events do not take place, besides, the perspective of team competitions without an audience has also been taken into account.