After spending a year on hold, Japan plans for the 2020 Olympic games to be held in the summer of 2021 in Tokyo. The remaining competition schedule is expected to stay the same, with the next Summer Olympics scheduled in 2024.
The original cost estimate for the Olympic Games was $7.3 billion. After the organizers released an updated budget with $12.6 billion in costs, an audit took a look at the rest of the books.
Japan’s Board of Audit found billions of expenditures from national and municipal governments that weren’t included on the financial ledger. They estimate that the Tokyo Olympics could cost over $26 billion to operate.
If COVID-19 protocols are still necessary when they’re held, the price could get even higher.
Organizers Say They’re Not Responsible for the Additional Money
Tokyo 2020 is fighting back on the idea that they’re responsible for the $26 billion that the Board of Audit suggests is the real cost of the games.
The organizers say that the board aggregates several projects from across the country that could be seen as game contributors. It didn’t matter whether the expenses were part of the official program or not.
Japanese media calculate that the price of holding the Tokyo Games could reach more than $28 billion. That’s compared to the $6.9 billion in place for the 2028 games expected to be held in Los Angeles.
The one difference between Tokyo and LA is that the American organizers expect to use several existing venues for the competition. Japan had to build several items, including a national stadium and a village for the athletes.
It’s not all bad news for the 2020 Summer Olympics organizers. Sponsorship sales have reached $3.3 billion, and ticket sales have been strong enough that lotteries have had to be established. When the event’s economic impact gets analyzed, it will still be a profitable venture for the city and Japan.