Tokyo 2020: Postponement costs IOC $55 million revenue deficit

The International Olympic Committee has reported a $55 million financial deficit in 2020. The results were primarily affected by the postponement of the Tokyo Olympic Games following the outbreak of the Covid-19 pandemic last year.

  • Publish Date - 6:00 pm, Wed, 21 July 21 Edited By: abhijit bhambra
Tokyo 2020: Postponement costs IOC $55 million revenue deficit
Photo credit: Twitter/@toisports)

The International Olympic Committee has reported a $55 million financial deficit in 2020. The results were primarily affected by the postponement of the Tokyo Olympic Games following the outbreak of the Covid-19 pandemic last year.

Under normal circumstances, the Lausanne-based sports governing body would have netted a revenue of around $ 4 billion, nearly 15% more than the $ 3.52 million the IOC had accumulated during the Rio de Janeiro 2016 Games’ year. The IOC has reported only $623.8 million revenue last year, states an insidethegames report, referring to the recently published IOC accounts.

The IOC has earned a mere $ 1 million from TV rights last year. To put into perspective the impact of TV rights revenue in an Olympic year, the IOC in 2016 had accounted for $ 2.87 billion under this head.

The deficit had occurred due to the loss of the Olympics media rights income after the pandemic had compelled the postponement of the Games. The revenue will now be figured out in this year’s accounts, following the successful delivery of the Games, starting on Friday.

Marketing rights values paid by multinational companies for participation in IOC’s The Olympic Programme worldwide sponsorship scheme has contributed $532.4 mn the vast bulk of income. According to insidethegames estimates, the TOP has so far aggregated $2.2 bn for the IOC for the cycle covering the Pyeongchang 2018-Tokyo 2020 Games.

It was only in the 2013-2016 quadrennium that TOP for the first time contributed more than $1 billion in cash and value-in-kind to the Olympic Movement.

Expenditures in 2020 totalled just under $800 million (£582 million/€679 million).

Around $300 million of the TOP-derived income was distributed to various Games Organising Committees and National Olympic Committees, states the report, with the highest $88.7 million. The collective purse of all the other NOCs was $89.8 million.