This archive report was first published on 15 May 2020.
On May 14, 2020, the International Olympic Committee (IOC) announced the creation of a Sh80 billion ($800 million) fund to address the financial consequences of the coronavirus pandemic.
The fund, which has two parts, aims to mitigate the financial impact of the pandemic on the Olympic movement. The first part, worth $650 million (602 million euros), will cover the costs associated with the postponement of the Tokyo Olympics, scheduled to take place in 2021.
The second part, worth up to $150 million, will serve as an aid package for international federations, national Olympic committees, and IOC-recognised entities.
According to IOC President Thomas Bach, the pandemic has had a severe financial effect on the world, society, government, and the Olympic movement as a whole.
"We anticipate that we will have to bear costs of up to $800 million for our part, our responsibilities for the organisation of the Games," Bach said.
The IOC has approximately $1 billion (926 million euros) in reserves, which it will use to cover the costs associated with the postponement of the Games.
The postponement of the Olympics has significant implications for the organisation, including the Olympic Athletes' Village, hotels, ticketing, venues, and transport.
According to the latest budget, the Games were due to cost $12.6 billion, shared between the organising committee, the government of Japan, and Tokyo city.
Bach warned that the postponement would cost the IOC "several hundred million dollars" and that the body would have to make cuts to honour its financial obligations to Tokyo.
"This situation requires compromises, requires sacrifices by everybody. Therefore the IOC and the organising committee are in close contact with this joint taskforce and we are leaving no stone unturned in this respect to reduce the costs while maintaining the spirit of the Games and the quality, of course, of sports competition and the athletes in particular," Bach said.
