The International Olympic Committee is braced for a financial hit of 800 million US dollars as a consequence of the decision to delay the Tokyo Games until 2021.
IOC president Thomas Bach said its executive committees has approved the sum to cover the costs of reorganisation and to support individual sports federations and national Olympic committees.
Bach said in a conference call: “We anticipate that we will have to bear costs of up to 800 million US dollars for our part of the responsibilities for the organisation of the Games.
“This amount will be covered by the IOC itself, including any funding we may have to refer to from the Olympic Foundation.”
The sum will be split into two parts, with the bigger slice of 650 million US dollars to help reorganising costs, and the remaining 150 US dollars as an “aid package” for those elements of the Olympic movement affected by the postponement.
Bach added: “This crisis has very severe financial impacts for the world and society and Governments, and for the entire Olympic movement.
“In this respect we have been discussing this financial impact today. You can imagine that this is not very easy because of all the uncertainties you have – nobody knows what the world looks like tomorrow.”
Bach refused to engage in speculation over any further postponement, saying the IOC has “full engagement” in the revised dates, and remains reliant on the advice of the World Health Organisation.
Bach added that the IOC would focus on adopting a more “frugal” approach towards the reorganised Games, in order to reflect the shifting global financial conditions.
“There are no taboos,” added Bach. “Everything is being discussed and everything is on the table, and this includes the service levels for all the stakeholders of the Olympic movement.
“Society will be more concentrated on essentials and maybe not so much any more the nice-to-have things in society, and all this will be reflected in the organising of this postponed Olympic Games.
“We want this Olympic Games to be a frugal Games, concentrating on the essentials and the spirit and message… is about the athletes and the sporting excellence.
“It is about bringing the entire world together and it will be a special situation, and also a message of solidarity in the world in addressing and overcoming this corona crisis.”