Some sponsors raised concerns that the promotional activities around the Tokyo Olympic Games might be curtailed owing to the crowd reduction measures enforced.
A Survey by Japanese broadcasters, NHK, revealed that around two-third of the corporate sponsors of the Tokyo Olympics are unsure about extending their contract with the organising committee beyond December.
NHK conducted a survey of 78 Olympic and Paralympic sponsor companies in May. Out of the list, 57 companies responded.
About 12 percent of respondents expressed their intention to extend their contract with the organisation committee. Around 65 percent shared their uncertainty about the extensions since they are yet to enter negotiations with the organisers.
After being asked about the impact of the coronavirus pandemic on their businesses, around 68 percent declared their financial situation has been deteriorating. Many companies refused to answer when they were asked about their stance on making a financial contribution once the contract is extended.
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Some companies raised concerns that the promotional activities around the Games might be curtailed owing to the crowd reduction measures enforced. While others are worried that the Games might get scraped completely with stakeholders currently contemplating if the Tokyo Olympics should take place next year or not at all.
While the Tokyo 2020 organisers have refused to put a price-tag on the additional cost of the one year postponement, the International Olympics Committee (IOC) has put aside $800 million.
The latest budget suggests that $12.6 billion additional expense due to the postponement of the Olympics will be shared between the organising committee, the government of Japan and Tokyo city. The Tokyo 2020 “Gold'' sponsors involve Japanese household names as Canon, NEC and Asahi Breweries along with the car giant Toyota, a worldwide Olympic sponsor.
The latest version of the Tokyo 2020 budget indicates that local sponsorship was due to bring in $3.3 billion, more than half the projected revenues of $5.9 billion.Since the suspension of the games, officials are under pressure to shorten the Games both in terms of cost and organisation.
This week, IOC President Thomas Bach said in an interview that they were searching for ways to "simplify the organisation of the Games, how we can reduce the complexity of the Games, how we can save costs for these postponed Games".
Tokyo 2020 chief executive Toshiro Muto disclosed that 200 proposals are on the table for simplifying the Olympics, but has not given any further details.
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