Costs of Tokyo Olympics delays could reach $2.8 billion

The cost to delay the 2020 Tokyo Olympics could reach nearly $2.8 billion, the Tokyo Organising Committee of the Olympic and Paralympic Games announced on Friday.

Though the games are now set to begin on July 23, 2021, Japan estimated that the amount of money needed to fund the postponed date could reach the billions nearly eight months ago. Added costs are set to be divided among Tokyo city government, Japan’s national government and a privately funded organizing committee, with each group taking on one-third of the cost, according to The Associated Press.

“I think our biggest challenge is the additional costs,” Tokyo Governor Yuriko Koike said during an online news conference, AP reported. “This is a crucial issue in order for us to prepare for the Olympics. We need to gain the understanding and sympathy of the people of Tokyo and the people of Japan.”

When Tokyo initially won the bid to host the 2020 Olympics in 2013 the city projected that the total cost would come to almost $7.3 billion overall. Prior to postponing the Games, Japan’s government said last year that the cost would be closer to $12.6 billion — a number that was debunked by a government audit concluding that the real cost could be twice that amount, according to AP.

Toshiro Muto, CEO of the 2020 Olympics organizing committee, said that Tokyo is seeking out domestic sponsors to help cover some of the expenses. The city has already collected $3.3 billion from sponsors, which is a record number totaling nearly twice that of previous Olympics.

In an attempt to cut costs, organizers announced months ago that they would not host hospitality parties or other activities, which were allotted nearly $280 million of the budget.

Muto said that larger cuts were expected.

“Whether you believe the glass is half-full or half-empty, whether your feel our efforts were enough, that’s up to you to decide,” Muto said.