Tokyo organisers to re-engage with sponsors next month
Organisers of the Tokyo 2020 Olympics are set to begin talks with sponsors next month about the effects the rescheduled games willl have on their deals.
Local companies will be asked to extend their sponsorship deals and potentially make extra payments to cover the cost of the postponement period, according to Japan Today.
At an online briefing with reporters, Masa Takaya, Tokyo 2020 spokesman, said: “We are planning to start sitting together with those companies, including the arrangement and content of the contract, in the very near future.”
He added the organising committee will be looking “into other potential partner companies”.
The 2020 Olympics are being delayed for 12 months because of the impact of the global coronavirus pandemic
A recent survey published by Japanese public-service broadcaster NHK said two-thirds of sponsors are undecided about extending for their contracts for another year.
Sixty-seven companies have so far signed up as local sponsors for the Tokyo 2020 Olympics or Paralympics, which have been mostly brokered by Japanese advertising giant Dentsu, the exclusive marketing agency for Tokyo 2020.
Local sponsorships for the Olympics are currently worth about $3.3 billion, twice more than previous Olympic Games. It represents nearly 60 per cent of the income for the privately-funded operating budget.
Tokyo organisers have said deals with 11 Olympic Partners or Top sponsors, the highest level of Olympic sponsorship, will also have to be amended.
Earlier this week, sources told Japanese newspaper Asahi the organisers would be asking for more sponsor fee payments to help over the costs of postponing the event for a year, a move that could make discussions more difficult.
Local reports have suggested the delay will cost $2 billion to $6 billion.
The International Olympic Committee has already pledged $650 million to cover some of the costs, with the rest down to the local organising committee to find. However, governments are picking up the majority of costs.
Organisers and the IOC have already suggested they will cut costs by “downsizing and simplifying” the event next year and the Paris Olympics in 2024.