The Summer Olympics have been going on since 1896 every 4th year, and they were expected to happen in Tokyo, Japan this summer. The games have been postponed for both athletes and tourists. Similar to other events that are postponed there are good things and bad things about the postponement and an article by Graham Dunbar of the Associated Press highlights the organizers concerns.
The good news is by 2021 rolls around, all the facilities will be up and running and the concerns of new buildings will have been fixed.
The bad news is similar to most cities around the world, the athletes village was slated to be sold as housing for residents of Tokyo. The buyers will not be able to move in, what do the orgainzers do?
There are 41 venues all include a supply of goods and services, the contracts have to be changed to 2021.
The official budget for the games was $12.6 billion with the IOC contributing $1.3 billion.
Of the revenue side, TV advertising contributed to 73% of the IOC’s $5.7 billion in revenues. The governing bodies were expecting to receive $540 billion.
The IOC has yet to reschedule their Annual General Meeting in July and their presidential election in Athens in 2021.
Linking to dividend paying stocks, while as a population we miss the Olympics, we understand the athletes and tourists would not be in thesync because of social distancing. The world changes and that is both good and bad. On the good side the Olympics will be run in an off year, but the 2024 would be back on the 4 year cycle. The support of the athletes will raise the goodwill of the country and hopefully make money for NBC as we all watch sports for a seemingly magical time. In terms of money, the sponsors who to raise revenues with their goodwill promotions.
There are more questions than answers, till the next time – to raising questions.