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  • Tokyo 2020 Unveils OCOG Budget Version Four


    12/20/19

    Sponsor revenues reach record high as enthusiasm for Games continues to grow

    Tokyo, 20 December 2019 – The Tokyo Organising Committee of the Olympic and Paralympic Games
    (Tokyo 2020) today unveiled updated V4 (version four) budgets for the Olympic and Paralympic Games
    Tokyo 2020 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.

    As in the previous versions, the OCOG revenues are fully privately financed by the International Olympic
    Committee (IOC), sponsors, licensing and ticket revenues at USD 5.9 billion (JPY 630 billion) and exceed
    the expenditures of USD 5.6 billion (JPY 603 billion). The robust financial position includes a contingency
    of USD 0.3 billion (JPY 27 billion).

    Record marketing activity has resulted in a domestic sponsor revenue increase of USD 0.3 billion (JPY
    28 billion) from the previous V3 budget to a total of USD 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 life cycle 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.

    Reference: Other Entities Budget
    The Other Entities public budget consists of the Tokyo Metropolitan Government; USD 5.6 billion (JPY
    597 billion), a decrease of USD 0.03 billion (JPY 3 billion) with the venue change for the race walk events,
    and the Government of Japan; USD 1.4 billion (JPY 150 billion). Together with the OCOG’s USD 5.6
    billion (JPY 603 billion), the updated overall Games expenditure totals USD 12.6 billion (JPY 1.35 trillion),
    which remains from V3. These investments include venues will serve Japanese sport and the local
    population for decades to come, hosting not only sports, but also music, cultural and other events – much
    as the legacy venues of the Tokyo 1964 Games have enriched the lives of the citizens of Tokyo and
    Japan for over half a century.

    Economic Effects of Tokyo 2020 Games
    The year before last the Tokyo Metropolitan Government announced that the economic benefits brought
    about by the Tokyo 2020 Games over 18 years from the bid decision in 2013 reached JPY 32.3 trillion. A
    2015 report prepared by Bank of Japan staff estimated a boost to GDP growth rate of 0.2~0.3% annually
    over the period between 2015 and 2018. Furthermore, hosting the Games will inspire the next generation
    and make major contributions to social change, including the realization of a diverse society, increased
    awareness of sustainability, and furthering of SDGs.

    1. Economic Wave/Effects of Hosting the Tokyo 2020 Games (March 2017)
    http://www.metro.tokyo.jp/tosei/hodohappyo/press/2017/03/07/03.html
    2. Economic Effect of Tokyo 2020 Olympics (December 2015)
    https://www.boj.or.jp/research/brp/ron_2015/data/ron151228a.pdf

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