Postponed Tokyo Olympics sponsors to extend contracts, confirm organisers

The organisers of the Tokyo Olympics 2020 on Thursday said that they have reached “basic agreement” with all domestic sponsors to extend contracts by a year while securing the additional funds needed for the virus-postponed Games.

Keeping all 68 domestic sponsors intact for another year is crucial for Tokyo Olympics organisers as the cost of Games spiked because of the unprecedented delay and the need for COVID-19 countermeasures.

In a statement, Tokyo 2020 said the "basic agreement" meant they were now "proceeding with the conclusion of contracts with all partners."

However, the organisers refused to drawn on just when the final details would be locked in without providing details on how much individual contract extensions were worth.

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Overall, the organisers said the extensions were likely to provide another 22 billion yen ($212 million).
Domestic sponsors are investing more money at the Tokyo Olympics than any previous Games.

Tokyo 2020 President Yoshiro Mori said sponsors had "spoken about the difficult situation that each of them are facing in the midst of the Covid-19 pandemic and the unprecedented economic crisis."

"At the same time, we received powerful messages from all partner companies... (saying) we definitely want you to hold the Games and we will support Tokyo 2020 as much as possible," he told reporters.
Organisers insist that the Games can go ahead as scheduled, on July 23, 2021. However, new infections in Japan and abroad with slow roll-out of vaccines have some unconvinced that the Games can or should process.

Domestic support for the Tokyo Olympics has been limited with a poll hinting that majority support postponement or cancellation. 

Organisers said this week the Games will now cost at least 1.64 trillion yen ($15.9 billion), almost $3 billion more than their revised budget produced last year.

The amount could make Tokyo 2020 the most expensive Summer Games in history with some suggesting the cost could balloon even higher. 

Tokyo 2020 CEO Toshiro Muto defended the price tag earlier this week, calling it a "positive investment."

"Whether you see this budget as expensive or not depends on how you look at it," he told reporters.