Data Map: Olympic elements can be seen everywhere in Tokyo, Japan.
China News Service Client, Beijing, March 25 (Li He) Following a joint statement, the Tokyo Olympics will "be held after 2020 but no later than the summer of 2021." After insisting for a long time, the Tokyo Olympics The IOC and the International Olympic Committee also made a decision to postpone the 2020 Tokyo Olympics. After the decision to postpone the unprecedented Olympic Games, losses are inevitable. However, it is not only Japan that is affected, but the postponement of the Tokyo Olympics will cause world sports to follow suit.
Previously, according to the Kyodo News Agency, chief economist of the First Life Economics Institute, Toshihiro Nagahama, estimated that if the Tokyo Olympics and Paralympics were postponed due to the new crown pneumonia epidemic, the special Olympics needs of tourists from home and abroad would disappear. In 2020, Japan The gross domestic product (GDP) will lose 1.7 trillion yen, including radiation effects of 3.2 trillion yen. At the same time, it was reported that Goldman Sachs estimated that the economic effect of the Olympic Games would disappear by 800 billion yen.
Data map: Odaiba Seaside Park in Tokyo, Japan shows the Olympic rings.
Just looking at these figures may be a bit thin. At the same time, Japan has placed too many hopes in this Olympic Games. When accidents happen, the losses are naturally huge.
Leaving aside the added value, when the scope is narrowed down to the field of sports, the Olympic Games as the highest hall of world sports, the most extensive impact of its delay and extension is actually the consumption of the entire international sports organization system from top to bottom.
According to the introduction of the Tokyo Olympic Organizing Committee's website, expenditures related to the 2020 Tokyo Olympics and Paralympics are roughly divided into the following three categories: expenditures related to the management and running of the Tokyo Olympics Organizing Committee; expenditures related to the Japanese Olympic Committee and the Japanese Paralympic Expenditure related to the Commission's plan to enhance the international competitiveness of Japanese athletes; Expenditure related to urban infrastructure projects implemented by the Tokyo Metropolitan Government, National Government, and other relevant organizations.
Data map: Tokyo Olympic Stadium.
After the postponement of the Olympic Games, the first two types of expenditure will inevitably need to continue to increase investment. So, the question comes: Where does the money come from?
It is also the information from the Tokyo Organizing Committee's website. Most of the income that supports the Olympic Games and Japanese athletes' expenditures comes from the Tokyo Olympic and Paralympic marketing plans. Among them, 55% comes from local sponsors, 14% comes from ticket sales revenue, and the budget source, which is almost equivalent to ticket revenue, is 13% of the IOC's funding.
Subsequent investments, if not much changed, also need to be developed from these channels. With ticket income almost fixed, and possibly even reduced due to changes, it seems that greater contributions from local Japanese sponsors and the International Olympic Committee are needed.
Source of income for the Tokyo Olympics. Image source: Tokyo Olympic Organizing Committee website
The Tokyo Olympics sponsorship program is divided into four different levels, and the International Olympic Committee's Olympic Partner (TOP) program constitutes the highest level of Olympic sponsorship. The remaining three levels are designated by domestic sponsors. The highest level in China includes gold partners, the second level consists of official partners, and the third level consists of official suppliers.
According to information published on the Tokyo Organizing Committee's website, so far, there have been 66 local sponsors of the Tokyo Olympics, and according to previously disclosed information, they have absorbed more than $ 3 billion in sponsorship costs.
Under such circumstances, it seems unrealistic to expect that the Japanese domestic economies that were affected by the epidemic will continue to contribute enough energy to support the "fallen down" Tokyo Olympics. Moreover, the delay of the Tokyo Olympics has directly led to a shrinking of the revenue of sponsors, and in this context, they will be cautious.
IOC top partner. Image source: IOC Market Report (January 2020).
In this way, the organizers will face the situation that the sponsorships they have previously absorbed are being emptied. In addition to reducing their own budgets, they will certainly need the support of the International Olympic Committee.
According to a market report released by the International Olympic Committee in January, Olympic-related revenue can be divided into two parts, one controlled by the International Olympic Committee and derived from top partners, broadcast rights, and official authorization from the International Olympic Committee Project revenue; the other part is controlled by the Organizing Committee for the Olympic Games, and comes from domestic sponsors, tickets, and revenues from host city authorized projects.
The announcement shows that 10% of the total income obtained by the International Olympic Committee will be used for its own development and management, and the remaining 90% will be allocated in various forms to support the Olympic and sports development.
Olympic income source. Image source: IOC Market Report (January 2020).
Specific uses are as follows: allocation to the Olympic Games, the Paralympic Games Organizing Committee, subsidization of related individual sports associations to promote the global development of their projects, and allocation to the Olympic Committees of member countries / regions to improve the level of local athletes , Support for international associations, individual athletes and coaches, and other Olympic-related activities.
In the event that the Tokyo Olympic Games was postponed due to the unexpected impact of the epidemic, and the interests were affected, there is no doubt that the IOC will lean towards the Tokyo Olympic Organizing Committee in terms of distribution ratio, and eat on the same plate. The proportion of other parties will be reduced accordingly.
These parties who were in urgent need of assistance due to the impact of the epidemic are also upset. Under the current environment, they will make it "difficult to live" for the Olympics. From the top down, the international sports organization system led by the International Olympic Committee will be tested.
Income of the International Olympic Committee. Image source: IOC Market Report (January 2020).
Such a test is not so simple as how to live through the hard times.
It is obvious that the delay of the Tokyo Olympics and the extension of the cycle will reduce the expected revenue of sponsors. At the same time, the important stakeholder also lost a lot, that is, the broadcaster.
The market report released by the International Olympic Committee in January shows that the revenue of the broadcasting rights of the International Olympic Committee has soared from US $ 1,251 million to US $ 4.157 billion in the past six Olympic cycles. In the last Olympic cycle, broadcast rights income accounted for 73% of the IOC.
Changes in IOC revenues from top partners and broadcast rights over the past 6 Olympic cycles.
With the change of the calendar, broadcasters have to deal with the diversion caused by the conflict in the resources of the event, on the other hand, most of their expected advertising revenue will also fail.
During the Rio Olympics, the IOC ’s revenue from top partners plus broadcast rights exceeded 5.1 billion, and these two revenues accounted for more than 80% of the IOC ’s total revenue. After the Tokyo Olympics has brought about a reduction in revenue or even a loss, the enthusiasm of gold owners for the Olympics may experience a period of cooling down. The "cautious attitude" that may be brought about by this may again show effects in the following Winter Olympics and Summer Olympics cycles.
If these inputs decrease in the future, it also means that the income of the International Olympic Committee will decrease, and the resources they put into other associations under their system will also decline accordingly. Such a vicious circle is naturally people do not want to see, It is indeed possible.
Looking further afield, the host of the 2032 Olympic Games, which was already difficult to produce, is harder to find this time, which adds another problem to the International Olympic Committee, which is already scratching its head.
In short, no matter whether the final impact is large or small, or long-term or short-term, the negative effects brought about by the unprecedented postponement of the Olympic Games will probably be slowly digested by the world sports together in the future. (Finish)