Tokyo 2020 Summer Olympics Looking At Record $3B-Plus In Sponsorship Revenue
Wednesday, June 26, 2019 at 08:56AM
NYSportsJournalism.com in IOC, Olympics, Olympics, Tokyo 2020, finances, sports marketing

By Barry Janoff

June 25, 2019: Organizers for the 2020 Summer Games in Tokyo have come under fire over the past few years due to finances, specifically the cost to put on the event, July 24-Aug. 9.

As recently as 2016, the budget was put at $14 billion, which prompted the International Olympic Committee to require reductions across the board.

Earlier this year, the budget was cut to $12.6 billion, with organizers stating, “There is still a lot of work to be done to control expenditure.”

But the Tokyo Games received some good financial news today during the 134th Session of the IOC in Lausanne, Switzerland.

The Tokyo Games have generated “record domestic sponsorship revenues of more than $3 billion, three times more than any previous summer Games,” according to John Coates, Tokyo 2020 coordination commission chair.

Coates told the IOC that local sponsorship agreements to date involve 62 companies for all three tiers of sponsorship arrangements: 15 Gold Partners, 32 Official Partners and 15 Official Supporters.

“This equates to revenues exceeding three billion dollars from national partnerships,” Coates told the IOC. “That is an amazing amount of money.”

With the 13 IOC global partners, there are 75 companies to date now partnered with the Tokyo Games.

Domestic sponsorship revenue for the 2016 Summer Games in Rio de Janeiro was about $848 million, London 2012 topped $1.1 billion and 2008 Beijing was more than $1.2 billion, according to global research and consulting firm Statista.

Several IOC top-tier global partners that are based in Japan have also started and/or are planning strong spend behind the 2020 Games, including Bridgestone, Panasonic and Toyota.

According to Coates, the $3 billion sponsor spend he cited “does not include the partnerships with Toyota, Bridgestone and Panasonic and their contribution to the TOP program.”

They, like other IOC global partners, are expected to spend in the hundreds of millions for local and global marketing, sponsorship deals and other activation, according to industry analysts.

According to the IOC, some 7.5 million people have registered for a Tokyo 2020 ID, which allows them to apply for tickets; and 200,000 people applied to be Games volunteers.

“This is an indication of this strong support and high level of interest among the Japanese public," said Coates.

The Olympic Torch Relay route unveiled and scheduled to visit all 47 prefectures in Japan. Presenting sponsors include Coca-Cola, Toyota, Nissay and NTT.

Bridgestone Names Teams For 2020 Olympics

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