Connect with us

Hi, what are you looking for?

The International Olympic Committee said Thursday it had created a fund of $800 million to tackle the financial hardships created by the coronavirus pandemic which has forced the postponement of this year's Tokyo Olympics until 2021 © AFP/File Fabrice COFFRINI


IOC creates Ksh 85bn fund to address coronavirus crisis

LAUSANNE, Switzerland, May 14 – The International Olympic Committee said Thursday it had created a fund of Ksh85 billion ($800 million) to tackle the financial hardships created by the coronavirus pandemic which has forced the postponement of this year’s Tokyo Olympics until 2021.

IOC president Thomas Bach, speaking by teleconference after a virtual executive board meeting, said the body had released “an envelope of up to $800 million to address the financial consequences of this COVID-19 crisis”.

“We anticipate that we will have to bear costs of up to $800 million for our part, our responsibilities for the organisation of the Games,” the German said.

The envelope has two parts: $650m (602 million euros) which “refers to the costs for the organisation” of the postponed Games for the IOC; and up to $150m as an aid package for the Olympic movement, in particular international federations, national Olympic committees and IOC-recognised entities.

Bach said the coronavirus pandemic, which has killed almost 300,000 people worldwide, had had “a very severe financial effect on the world, on society, on government and of course also on the Olympic Games, the entire Olympic movement and in particular the IOC”.

“We have been discussing this financial effect, this financial impact today. You can imagine it’s not easy because planning in these days is so difficult because of all the uncertainties you have.

“Nobody knows how the world looks like tomorrow,” Bach said. “It’s a very incremental planning procedure.”

The IOC, which has approximately $1 billion (926 million euros) in reserves, in March took the historic decision to postpone the Games, scheduled to open on July 24, until July 23 to August 8, 2021. It was the first peacetime postponement of the Games.

Advertisement. Scroll to continue reading.

The postponement affects every aspect of the organisation — the Olympic Athletes’ Village, hotels, ticketing, venues and transport, being among the major headaches.

– No speculation –

According to the latest budget, the Games were due to cost $12.6 billion, shared between the organising committee, the government of Japan and Tokyo city.

Bach had warned last month that the postponement would cost the IOC “several hundred million dollars”, adding that while the body would honour its financial obligations to Tokyo, it would probably have to make cuts.

“This situation requires compromises, requires sacrifices by everybody. Therefore the IOC and the organising committee are in close contact with this joint taskforce and we are leaving no stone unturned in this respect to reduce the costs while maintaining the spirit of the Games and the quality, of course, of sports competition and the athletes in particular.

“Everything is being discussed and everything is on the table.”

But Bach was quick to scotch rumours that the postponed Games could be moved to another country depending on how the COVID-19 outbreak plays out.

“We are now working with full engagement on the success of Tokyo 2020 starting on July 23, 2021… To have the Games in a safe environment for all participants in Tokyo next year,” Bach said.

“We are one year and two months away from these postponeed Olympic Games. We should not perhaps fuel any speculation on any future developments now.”

Advertisement. Scroll to continue reading.

The IOC also agreed to hold their next executive board meeting, virtually, on July 17.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


More on Capital Sports


NAIROBI, Kenya, May 25 – There is light at the end of the tunnel. After failed promises over the last three years since its...


NAIROBI, Kenya, Aug 13 – Kenya’s history making Daniel Adongo, the first Kenyan to play in America’s National Football League (NFL), is now living...


NAIROBI, Kenya, June 8 – Olympic Champion Caster Semenya and wife Violet Raseboya have hinted that they might be expecting a baby in a...


NAIROBI, Kenya, Oct 15 – Daniel Wanjiru, the 2017 London Marathon champion has been slapped with a four-year ban by the World Athletics Disciplinary...

© 2020 Capital Digital Media. Capital Group Limited. All Rights Reserved