This archive report was first published on 12 June 2020.
June 12, 2020 - Tokyo, Japan
Two-thirds of Tokyo 2020's corporate sponsors are in limbo about their support for the Games, now that the event has been postponed to 2021, according to a new survey published by Japanese public broadcaster NHK.
The poll, conducted among 78 Olympic and Paralympic sponsors, found that 65 percent of respondents had not made up their minds about extending their financial backing for another year.
Some companies expressed concerns that their promotional activities around the Games could be curtailed due to crowd-reduction measures imposed to combat the coronavirus, while others worried that the Games could be scrapped altogether.
Many sponsors also said they had not decided whether to extend their sponsorship because they had not yet opened negotiations with the organisers, suggesting they may be open to persuasion.
As Olympic organisers face the unprecedented challenge of funding the postponement of the Games, more than two-thirds (68 percent) of respondents said the coronavirus had taken a toll on their own financial situation.
Tokyo 2020 organisers have refused to put a price tag on the additional costs of postponing the Games by one year, but the International Olympic Committee (IOC) has set aside $800 million.
The latest budget for the Games, which was due to cost $12.6 billion, shared between the organising committee, the government of Japan and Tokyo city, relies heavily on local sponsorship, which was due to bring in $3.3 billion, more than half the projected revenues of $5.9 billion.
