THE BILL for moving the Olympics and the Paralympics could run into billions of pounds.
A sports lawyer has warned there will be severe financial ramifications following the decision to switch to the summer of 2021.
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The Olympic cauldron at Aquamarine Park in Tokyo
Two men chat behind the Olympic rings near the New National Stadium in Tokyo
An estimated £10bn has been spent staging the 2020 Games so far.
Simon Leaf, managing associate of Mishcon de Reya, told SunSport: “This is a major headache for everyone in the Olympic movement and Team GB.
“When you add together all the impact on the tourism industry, preparing the venues, and everything else, it wouldn’t surprise me if it ran up to tens if not hundreds of millions of pounds.
“There are so many parties involved. Broadcasters in the US would have sold adverts and schedules for the Olympics.
“Instead of the 100 metres final — that slot might have to be a repeat of Dallas now.
“The Japanese authorities have been the most reluctant to move this.
“One would expect the agreement they have with the IOC is in the IOC’s favour.
“You’d expect agreements to have clauses to cover unexpected circumstances like a pandemic.
“But in this incident, I’d expect it to be heavily weighted towards the IOC.
“It’s likely the host city has to bear the brunt of hosting the Games at another date.
“There are agreements with stadium operators and owners for 2020. They could incur more costs to make sure they are available for 2021.
The New National Stadium is made partially out of wood and is revolutionary in design
The New National Stadium will feature 185 large spot coolers to protect crowds and athletes from the searing Tokyo summer temperaturesCredit: Kengo Kuma
“Then there are the issues with hotels and the Olympic village, which has people moving into it next year.
“Local supplies like catering and merchandising might not be paid before the Games start – can they wait that long?
“And fans might not travel if there is the chance of the pandemic returning.”
The Games are esteemed to cost organisers around £10billion.
The budget is split between the organising committee, and local and national governments.
The IOC have contributed more than £675m.
The Japanese government claim to have spent £1.2bn, the majority on building the new National Stadium in Tokyo
But experts claim the sum is almost eight times bigger, at £8.3bn.
The stadium’s open-air plan is designed to let a breeze go through itCredit: Kengo Kuma
Architect Kengo Kuma’s original design proposal shows the plans for the stadiumCredit: Kengo Kuma
Kuma’s stadium cost around £1 billion to buildCredit: Kengo Kuma
The Tokyo Aquatics Centre will feature swimming eventsCredit: Rex Features
Adam Peaty will not be defending his Olympic title this year in Tokyo – but in 2021 insteadCredit: Dave Pinegar – The Sun
Leaf is also concerned GB stars could be financially hit in the pocket because of contractual agreements with key sponsors.
He added: “A lot of athletes out there rely on the Olympics to make a living and a name for themselves.
“They will have to check if those deals are valid in 12 months’ time. They might run out in August for example.
“Athletes are defined as self-employed and might not be covered by the Chancellor’s protections.
“From a financial perspective they could be vulnerable. The Olympics this summer would have bolstered their income.
“Sponsors could be left out of pocket. Filming and promotion shoots would have been done and media space has been bought.
“Athletes who have qualified, can they still compete at the same level? There might be legal action if they have to re-qualify.”
The New National Stadium is ready but will have to be moth-balled
Olympics postponed as Tokyo 2020 is latest sporting event crushed by coronavirus and pushed back until 2021
Source: Athletics - thesun.co.uk
