A “basic agreement” has been reached with all 68 domestic sponsors to extend their contracts into next year to support the postponed Games said the Tokyo Olympics officials on Thursday.
The local operating budget got a huge boost as it got a record $3.3 billion from Japanese domestic sponsors. The contribution is twice as large as any previous Olympics and is driven by Dentsu Inc, the marketing agent for the Tokyo Games.
Financial details and the terms of extensions were not revealed by the officials immediately during an official briefing. According to the officials, the contracts were still being finalized.
The top 15 so-called “Gold Partners” would contribute an added 1 billion yen each (about $10 million each) reported Japanese newspaper Nikkei earlier this month.
Canon, Fujitsu, and the Mizuho Financial Group are some of the Gold Partners.
Along with other dailies including Asahi, Mainichi, Yomiuri, and several smaller newspapers, Nikkei is also a domestic sponsor.
According to reports, sponsors like airline ANA and Japan Airlines who struggled during the pandemic were also contributing.
Tokyo Olympics cost up by 22 percent to USD 15.4 billion
The local organizing committee of the postponed Tokyo Olympics unveiled its new budget on Tuesday. It mentioned that the official cost of the event has now increased by 22 percent.
It will take USD 15.4 billion to pull off the Olympics, the organizers said in an online news conference. It has increased from the last year’s budget which was USD 12.6 billion.
The one-year delay has resulted in an added USD 2.8 billion. Factors like renegotiating contracts and measures to tackle the Covid-19 pandemic counts for the extra expenses.