Sponsorships Losses with Postponed Olympics

The International Olympic Committee the postponement of the 2020 Tokyo Summer Olympics, which disappointed the IOC but was a necessary decision amidst the global Covid-19 Pandemic. These committee organizers confirmed that these scheduled games will still take place in Tokyo, with delays sustaining twelve months. It’s expected that the Tokyo Summer Olympics won’t be held until July 2021. This is costing sponsors that supported this global venue, with it being assumed that they’ll demand interest compensation for the delays. It’d be a viable claim but unreasonable during the pandemic, as all sporting events have terminated their respective operations.

Joint statements were issued by the Tokyo 2020 Organising Committee and International Olympic Committee. It was noted that the specific circumstances of Covid-19 saw a continued influx of information from WHO officials. After substantial discussions were the Japanese Prime Minister and IOC President, it’s been determined that Tokyo’s XXXII Olympiad must be shut down. This joint statement confirmed that the venue wouldn’t be held any later than Summer 2021, that this decision was ultimately made to ensure the safety of athletes and employees. This extends towards everyone visiting or working under the Olympic Games globally.

Sponsor Rewards

IOC confirmed that the Olympic Torch would continue being lit before the venue is held. That means the Olympic Torches home in Tokyo will remain present for an additional twelve months. This should be relieving for merchandisers globally, who don’t have access to their manufacturing facilities. IOCs announcements followed after weeks of speculation indicated sponsors & advertisers with planned campaigns would lose their valuable investments. However, all previous sponsorship contracts will remain active under this postponement period. Corporations will receive their due advertisements by Summer 2021.

The corporations affected with their sponsorship campaigns for the 2020 Tokyo Olympics include Airbnb, Coca-Cola, Apple, Samsung, Canon, Fuji and Nikon. This marks the 1st time since World War Two that the Olympic Games were postponed. Additional game closures were conducted through WW1 as well. Though these corporations might be disappointed with their delayed advertisements, athletes and planned visitors have agreed with IOCs decision. These large-scale companies would’ve lost a substantial sum of money under this reformatted agreement, that being upwards of $75 million for Coca-Cola in 2020.