Organizers hesitating to postpone Tokyo Olympics due to potential economic losses, former official says

Wei Jizhong, a former high-ranking official with the Chinese Olympic Committee, predicts heavy economic losses should the Tokyo Summer Olympics are postponed, hinting that the rescheduling might affect Beijing 2022 Winter Olympics' sponsorship program.

With the postponement of the Tokyo Olympics now discussed as a potential solution amid the ongoing COVID-19 pandemic, Wei, a former secretary-general of the COC, said the tough financial losses suffered by all Games' stakeholders should the delay happens are key reasons for the organizers' hesitation on making a quick decision.

"The postponement will have a huge effect on the Tokyo Games' marketing program especially the broadcasting revenue," Wei wrote in a column published on qq.com on Tuesday.

"The broadcasting plans for the Games have long been set while the sales of TV commercials during the Games' original window have been done as well. Should the postponement happens everything has to be rescheduled thus causing a great economic loss that cannot be recovered."

On Monday, International Olympic Committee member Dick Pound told USA Today newspaper that the postponement of the Tokyo Olympics, which were scheduled to open on July 24, has been decided "on the basis of the information the IOC has".

Wei, who is also the honorary life president of the Olympic Council of Asia, said delaying the mega sporting event to 2021 seems the most feasible option.

"Dragging it two more years into 2022 seems too late, while still staging it this year on a later date might not be safe enough given the ongoing pandemic," he said.

With the Tokyo Games' pending postponement affecting sponsors' investment globally, the changing tide on the marketing front for the Games might also cast a shadow on the 2022 Beijing Winter Games, Wei reckoned.

"Sponsors and business partners of the Games would have to keep investing extra money in their marketing programs for Tokyo if the Games are postponed, potentially forcing them to reduce their budgets for the next Olympics," he said.

"On the other hand, it's also possible that the slowing economy amid the pandemic will limit their investment in Tokyo 2020 while instead boosting their Beijing 2022 marketing plans with some additional budget."