The postponement of the Tokyo Games until next year because of the COVID-19 pandemic will incur Japanese organizers an additional 294 billion yen ($2.8 billion), the organizing committee said on Friday.
Organizers have been assessing the financial impact of the delay since the Japanese government and the International Olympic Committee (IOC) decided in March to postpone the Games until 2021.
According to the organizers, the Tokyo metropolitan government is expected to pay 120 billion yen while the organizing committee is to pay 103 billion yen and the Japanese government is to pay 71 billion yen.
The IOC previously stated they will contribute $650 million to cover postponement costs, which is separate from the costs announced by Japanese organizers on Friday.
Tokyo 2020 CEO Toshiro Muto stated that their share of the costs would come from a contingency fund detailed in last year’s budget, additional sponsorship and insurance.
The organizing committee gave the last official budget of $12.6 billion in December 2019, months before the Games were postponed.
According to Tokyo 2020 President Yoshiro Mori, the IOC had agreed to waive any additional royalties accrued by new sponsorship deals secured by the organizing committee.