OLYMPIC body Should Cover Half of The Cost of Delayed Tokyo Games, Economist Says

OLYMPIC body Should Cover Half of The Cost of Delayed Tokyo Games, Economist Says

OLYMPIC body Should Cover Half of The Cost of Delayed Tokyo Games, Economist Says
Photo: CGTN

The International Olympic Committee (IOC) should shoulder half of the additional cost of postponing the Tokyo Games, a US economist said in the interview.

Andrew Zimbalist, an economics professor focusing on sports business, said IOC must “pick up half the tab” as the organizer of the games.

The IOC and Japan agreed in March to postpone Tokyo Games next year. This is due to the worsening situation of COVID-19 pandemic around the globe.

The IOC agreed to allocate an extra $650 million for the postponed games. However, they expect additional costs about several hundreds of billions of yen in the next months.

This will force the IOC and Japanese organizers to ease financial impact of the delay.

READ: Japan Tested Their Snow Machine For 2020 Tokyo Olympics

OLYMPIC body Should Cover Half of The Cost of Delayed Tokyo Games, Economist Says
Photo: CGTN

Further, the Massachusetts professor explained to Kyodo News that there are times that holding the Olympics may not be correlated to the economic and tourism effect of the country.

“Tokyo 2020 has not specified what they envision by ‘a simplified games,’” he said in the email interview.

“There may be some small savings by reducing frills and excess, but these savings will be minor relative to the additional costs of holding the games in 2021.”

Mr. Zimbalist believed that the IOC may consider cancelling the games while there is still no vaccine for the virus.