TOKYO: The Tokyo 2020 Olympics are expected to cost some JPY 1.35 trillion ($12.6 billion), the Organising Committee of the Olympic and Paralympic Games (Tokyo 2020) stated Friday while unveiling updated V4 (version four) budgets for next year’s Games with the Tokyo Metropolitan government and the government of Japan.
These comprise the “OCOG” budget, which is the responsibility of Tokyo 2020, and the “Other Entities” public budget of the Tokyo Metropolitan government and the government of Japan, which includes long term investments for the city and country that will serve future generations for decades to come, as they lead the way in building a more inclusive society – a key legacy of these Games.
However, officials admitted the budget does not yet include an estimated three billion yen for moving the marathon and race walk north to Sapporo, as they wrangle with the International Olympic Committee (IOC) over who bears the cost.
OCOG and Other Entities Budget
As in the previous versions, the OCOG revenues are fully privately financed by the International Olympic Committee (IOC), sponsors, licensing and ticket revenues at $5.9 billion (JPY 630 billion) and exceed the expenditures of $5.6 billion (JPY 603 billion). The robust financial position includes a contingency of $300 million (JPY 27 billion).
Record marketing activity has resulted in a domestic sponsor revenue increase of $300 million (JPY 27 billion) from the previous V3 budget to a total of $3.3 billion (JPY 348 billion) – reflecting the widespread recognition throughout Japanese industry of the unparalleled opportunities offered by the Tokyo 2020 Games. Furthermore, ticket sales are expected to increase by USD 0.07 billion (JPY 8 billion) to USD 0.84 billion (JPY 90 billion). Overall revenues have thus increased by USD 0.3 billion (JPY 30 billion) to USD 5.9 billion (JPY 630 billion).
This Games lifecycle continues driving growth and opportunity for local business. Experience gained via test events, as well as the latest developments in project preparations throughout the organisation, have clarified both expected expenditures and previously unforeseen demands. For transportation, USD 0.4 billion (JPY 41 billion), an increase of USD 0.1 billion (JPY 6 billion) and for Games operations, USD 1.2 billion (JPY 124 billion), an increase of USD 0.2 billion (JPY 19 billion) over V3 of the budget have been observed. In response, discretionary expenses, which were reserved well in advance, have decreased by USD 0.2 billion (JPY 25 billion).
Furthermore, due to the race walk venue moving from Tokyo to Sapporo, the expenditures which were borne by the Tokyo Metropolitan Government in V3, are now incorporated into the OCOG budget. Pursuant to the transfer between Tokyo and Sapporo, Tokyo 2020 and the IOC are currently discussing about expenditures.
To ensure a strong financial foundation for the successful delivery of the Games, a USD 0.3 billion (JPY 27 billion) contingency is ringfenced to deal with unexpected circumstances.
Earlier this year, Los Angeles 2028 Olympics chiefs unveiled details of a $6.9-billion budget for the Games, vowing to deliver the spectacle without cost overruns that have dogged recent editions of the extravaganza, AFP reports.
The Paris 2024 budget for the Games amounts to 6.8 billion euros ($7.6 billion), 1.5 billion of which will come from the state the news wire further stated.
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