Today, the Tokyo 2020 Organising Committee published version three of the OCOG budget;
Press release by Tokyo 2020:
21 December 2018
The Tokyo Organising Committee of the Olympic and Paralympic Games (Tokyo 2020) today announced updated 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 after these Games.
As with the previous version, the OCOG budget remains balanced and fully privately financed by the International Olympic Committee (IOC), sponsors, licensing and ticket revenues at USD 5.6 billion (JPY 600 billion) with no burden to taxpayers. This includes the costs of the Paralympic Games.
On the back of sustained marketing efforts, domestic sponsor revenues for Tokyo 2020 have increased by USD 0.1 billion (JPY 10 billion) to USD 3.0 billion (JPY 320 billion) compared to the previous budget, with another USD 0.1 billion (JPY 10 billion) of revenue expected. All OCOG revenues are being sourced from private funding; in addition to the successful local sponsor revenues, this will include the proceeds from ticket sales, licensing revenues, a significant contribution from the IOC and sponsorship from TOP partners.
“As a major investor in the local economy, the Olympic Games Tokyo 2020 is already acting as a catalyst for companies and workers to benefit from the investments made in the Games. The IOC is pleased that the Games will continue to generate a substantial positive economic impact,” said IOC Coordination Commission Chair, John Coates. “There will be no cost to the public purse for the Organising Committee’s operation of the Games. This will be covered entirely from the revenue generated by the Games themselves.”
Tokyo 2020 CEO Toshiro Muto added, “With less than 600 days to go until the Games, we are finally entering a fully-fledged implementation phase. As many aspects of the Games have become more detailed, Tokyo 2020 has seen increases in some new areas but has successfully reduced expenditures in other areas, resulting in the updated budget remaining the same as the previous version. There is still a lot of work to be done to control expenditures , but with the cooperation of the IOC, Tokyo 2020 will continue to make best efforts to maximize revenues, contain costs and keep its budget within 600 billion yen.”
As the Games approach, most aspects of the Games and stakeholder requirements have become clearer; some items have been reduced and others added thanks to greater clarity of scope and/or unforeseen demands. For transportation, USD 0.3 billion (JPY 35 billion), an increase of USD 0.1 billion (JPY10 billion), and for Games operations, USD 1.0 billion (JPY 105 billion), an increase of USD 0.1 billion (JPY 5 billion) over Version 2 of the budget have been allocated. These costs are covered by a reduction in the existing contingency of USD 0.1 billion (JPY 15 billion) and savings achieved as a result of the IOC’s Olympic Agenda 2020 and its New Norm recommendations.
These recommendations have already produced savings in the Other Entities budget of USD 2.2 billion relating to the permanent construction budget, as well as another USD 2.1 billion savings in various operational areas benefiting both the OCOG and Other Entities budgets – a total of USD 4.3 billion (JPY 450 billion) from Olympic Agenda 2020 and its New Norm.
Tokyo 2020 firmly believe that the hosting of the Olympic and Paralympic Games will not only deliver positive economic knock-on effects but also inspire future generations, enhance diversity and harmony, and contribute to the advancement of the world’s Sustainability Development Goals.
Together with its delivery partners, Tokyo 2020 will make every effort to continue identifying further cost-reductions and increased revenues to ensure sustainable Olympic and Paralympic Games.
Reference: Other Entities Budget
The Other Entities public budget has not increased and remains at USD 7.0 billion (JPY 750 billion). Out of this amount, USD 3.2 billion (JPY 345 billion) is being invested in the nine new permanent venues, including the Olympic Stadium, which the Government of Japan will manage, as well as eight other venues which the Tokyo Metropolitan Government will manage, including the Tokyo Aquatics Centre. These venues will serve Japanese sport and the local population for decades to come, hosting not only sports, but also music, cultural and other events. The venues used at the Tokyo 1964 Games including those which will be used for the 2020 Games, such as the Yoyogi Stadium, have already enriched the lives of the citizens of Tokyo and Japan for over half a century.