IOC offers US $ 800 million help to cover up Olympic Games 2020 postponement loss
Finally, the IOC has decided to provide a financial backup or support worth the US $ 800 million to both the Organizing Committee of Tokyo 2020 besides its affiliates – International Sports Federations, National Olympic Committees and Athletes. The financial envelope of up to USD 800 million approved by the IOC is to address the COVID-19 crisis.
The IOC anticipates that it will have to bear costs of up to USD 800 million for its part of the responsibilities for the organization of the Olympic Games Tokyo 2020, its own extended operations and the support for the wider Olympic Movement. This amount will be covered by the IOC itself, including any funding from the Olympic Foundation.
This number includes the cost for the organization of the postponed Games of up to USD 650 million for the IOC, and an aid package of up to USD 150 million for the Olympic Movement, including the International Federations (IFs), the National Olympic Committees (NOCs) and the IOC-Recognized Organizations, to enable them to continue their sports, their activities and their support to their athletes. The IOC Executive Board (EB) has approved this financial plan.
At the moment, the IOC is undergoing a deep analysis process to evaluate and assess the impact of the COVID-19 crisis on all of its operations. This is a complex exercise because of the constantly changing factors which have to be considered in the current environment.
Recently, the International Weightlifting Federation (IWF) too announced financial support to its affiliate national units. Besides, some Governments, including the Swiss Government, have also announced liberal financial grants to the national and international sports bodies, athletes and their organization besides the sports promoters.
Because of the ongoing corona pandemic, the 143 billion Euro sports industry is passing through its worst financial crisis. The crisis was further aggravated because of the postponement of the Tokyo 2020 Olympic Games and also the cancellation or postponement of various international sporting events.
The IOC, as the leader of the Olympic Movement, is playing a critical role in supporting its stakeholders during the COVID-19 outbreak. To stand in solidarity with the Olympic Movement, it has also put together an aid package of up to USD 150 million, from which the IFs, NOCs and IOC-Recognized Organizations can benefit. This funding is meant to help them continue their mission to develop their sports, prepare for the Olympic Games and support their athletes. The IOC and its stakeholders are still going through the analysis process to assess the needs on a case-by-case basis.
Additionally, the Swiss Federal Council agreed yesterday to offer support to the Switzerland-based IFs in a joint program with the IOC. 'The IOC thanks the Swiss Federal Council for the offer to support the International Federations jointly with the IOC. We are fully committed to successfully delivering this International Sports Federation support program in cooperation with the Swiss authorities. This initiative is a great acknowledgment of the importance of the International Sports Federations and sport,' IOC President Thomas Bach commented.
It was previously announced that Olympic Solidarity has increased the budget for its athlete programs by USD 15 million, which covers scholarships for over 1,600 athletes from 185 NOCs and the IOC Refugee Olympic Team.
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Olympic Solidarity had also increased the budget for IOC subsidies for the participation of NOCs in the Olympic Games by USD 10.3 million. This additional budget will allow Olympic Solidarity to make available additional funds relating to exceptional Games-related costs incurred by NOCs due to the postponement of the Olympic Games Tokyo 2020.
President Bach said: 'The Olympic Movement is facing an unprecedented challenge. The IOC has to organize postponed Olympic Games for the first time ever and has to help its stakeholders come through this global crisis. This new situation will need all our solidarity, creativity, determination and flexibility. We shall all need to make sacrifices and compromises. Extraordinary circumstances call for extraordinary measures. This situation requires every one of us to do our part, and this applies to all of us, including the IOC. With today's financial plans, we are addressing these needs.'
-PTC News
