The fate of the Tokyo 2020 Olympics remains in a limbo with the spread of the coronavirus showing little signs of abating. While both the International Olympic Committee (IOC) and Japanese organisers are still hopeful that the Games can proceed as scheduled or at worst case scenario delayed to later part of the year, there is no guarantee of that yet.
If the Olympics is indeed cancelled, the biggest losers would be the athlete themselves as well as hosts Japan. The IOC would have very little to lose by cancelling their marquee event, despite the huge amount of money involved.
While the hosts may lose billions, the IOC could still walk away with the coffers filled to the brim.
Tokyo is spending about US$12.6 billion to organise the Olympics, although a national government audit says it’s twice that. With their contract with broadcasters heavily insured against situations as such, the IOC would still earn as much as USD 4 billion in broadcast rights immaterial of whether the Games proceed or not.
The money made from broadcasting rights don’t go to the host city as it is shared between the IOC, sports federations, and national Olympic committees.
The 81-page “Home City Contract” signed in 2013 by the IOC, the city of Tokyo, and the Japanese Olympic Committee, gives the IOC wide latitude to terminate the right to host the Games.
Under the contract terms, the IOC has the right to terminate the contract in case of war, civil disorder, boycott or if it has “reasonable grounds to believe, in its sole discretion, that the safety of participants in the Games would be seriously threatened or jeopardized for any reason whatsoever.”
The IOC can also terminate if the Games is not held in 2020 and that the city, local organisers and the national Olympic committee waives any claim and right to any form of indemnity, damages or other compensation.
In other words, the IOC comes out of any cancellation unscathed while the hosts would have to bear the financial burden. In the past, the IOC has assisted hosts to cover some deficits, but that’s not guaranteed.
The Rio Olympics four years ago is said to have ended up with a US$2 billion deficit that has not helped the country ravaged by economic disaster.
The deficit was not avoided despite the fact US$9.3 billion in marketing rights and additional sum from ticketing were earned by the host. It was just not enough to cover the cost of the Rio Games while the IOC pocketed close to US$4 billion from broadcast rights.
Soon after the Games, Brazil’s economy was in free-fall, and the companies and politicians delivering the games were also embroiled in the biggest corruption case in its history. Venues are in a state of disrepair and all attention of the failure in Brazil has been diverted to another Olympics in the horizon.
The Olympics, generates lots of money, but not everyone especially the host and athletes, with the exception of the top stars, actually benefit from it.
Studies estimate that just 6 per cent of the money generated by the Olympics goes back to athletes as salaries. The rest is spent by the IOC and national bodies as they deem fit.
While the hosts still hold on to the belief that they can continue to host the Games as scheduled from July 24, some members of the IOC, including their former vice president Dick Pound, are already talking about a possible cancellation.
And, why not? The IOC is not going to be affected by any cancellation. The IOC could easily postpone the Games to 2021, but that option does not seem to be on their table at the moment.
For many of the athletes any cancellation of the Games, would derail their lifelong dream of being an Olympian. Four years down the road, they may not even be competitive enough to qualify. Many of them have sacrificed time, money and personal life to train and qualify for the Olympics.
If the Games are cancelled because of the current pandemic, it would be disservice by the IOC to the athletes, who are the reason the IOC exists.
There is no pride in paying lip service to Olympism when decisions are not made for the benefit of athletes by the bureaucrats sitting in posh offices.
The IOC should seriously look at new dates for the Games, whether it is in 2020 or one year from now instead of taking the easy way out by cancelling it.
Take a leaf out of how World Athletics had handled their affairs with the coronavirus threat. The World Athletics Indoor Championships, scheduled for Nanjing from March 13-15, were postponed until 2021.
The coronavirus threatens life, but the cancellation of the Olympics kills the dreams of the athlete.
About Post Author
