[ad_1]
While the IOC (International Olympic Committee) and the Tokyo 2020 Organizing Committee discuss who will pay the additional cost of approximately R $ 14 million that the postponement of the Olympic Games will cause in the Japanese accounts, experts from around the world are trying to understand the consequences: not just sports, which the new coronavirus pandemic will bring to the Games.
One of these main names is that of the Spanish Emilio Fernández Peña. Professor of communication and director of the Center for Olympic Studies at the UAB (Autonomous University of Barcelona), he directs the Institute of Sports Research, which he has just founded and to which 60 researchers from 15 departments of the UAB are linked, one of the most important in Europe
In this exclusive interview with Globoesporte.comPeña speaks with concern about the economic consequences for the organization of the Tokyo Olympics, but believes that the global charm of the Games will not diminish even amid the problems stemming from the Covid-19 pandemic. Researcher and consultant to the IOC, the Spanish explains how this Olympic puzzle works, now in times of crisis. And he even comments on the possibility that, if there is no vaccine, for example, the Olympic Games will be held without fans in Tokyo.
It may be that, in the worst case, the Games have to be held without an audience, I do not want to think about it, but really the important public is not local, but global (…), and the Games will have them because, as (ex) President (IOC) Jacques Rogge, the Olympic Games held primarily on television, and I would add in the digital media.
Is it possible to assess, today, the size of the economic losses of the IOC and Tokyo with the postponement of the Games until 2021? Besides finances, are there other relevant losses?
Losses are very difficult to assess. Right now, there may not be enough perspective, but it will be seen soon. It is obvious that, for the Tokyo 2020 organizing committee, there will be losses due to the need to postpone the Games. Think that all the infrastructure, stadiums or the Olympic Village must be standing for more than a year and be ready for competition. Hundreds of people hired by the organizing committee and who would be fired after the Games, many, not all, are expected to continue to be hired for another year. On the other hand, the television and media center will be at the Tokyo Convention and Exhibition Center. This summer it was reserved for the Olympic and Paralympic event and, the following year, certainly at the time of the Games, it had been reserved for other exhibitions, fairs or events. This will mean losses for the organizing committee.
On the other hand, from the point of view of the International Olympic Committee, the sponsorship programs are designed for a normal Olympic cycle, of four years and not five. It will be necessary to extend the term of the association agreement with the main brands, the main sponsors, another year, which means that the next period will be 3 years. In turn, audiovisual rights, which together with sponsorship represent around 90% of the income of the Olympic family, also suffer a setback. If it had been a cancellation, the insurance would have covered the losses for the interested parties. It seems that this is not so clear in the case of a year of delay.
On the other hand, Olympic athletes from non-massive sports federations will have trouble with their individual sponsorship contracts this year, as many of the competitions will not be able to take place. Olympic federations will also have trouble obtaining their sponsorship contracts. It is clear that the opportunities to recover investment will return next year in 2021, but the uncertainty of an economic crisis that is already present here and from which the world will not recover in the next 12 months in its entirety is introduced into this scenario. . This will reduce advertising markets, certainly also the consumer market and the labor market. There will be more unemployment that will not recover worldwide in all these months. However, there is no demand crisis, because now there is and in a year there will be a world demand for a sporting event of interest such as the Olympic Games.
The solidity and economic success of the Olympic project were based on a world of certainties, thinking in the long term, and now this great global crisis in health and economy is moving us all on the ground we are on.
The Spanish Emilio Fernández Peña, director of the Center for Olympic Studies of the Autonomous University of Barcelona – Photo: Personal archive
On the other hand, if the Games normally take place in 2021, is it possible to say that Tokyo will be the site of the most important Olympic Games of all time? Why
At this point, there is no uncertainty about Japan’s ability to organize great games in every way: from an organizational point of view, technological innovation, and its ability to collectively recover from difficult situations. Yes, it’s true that especially since the 1980s and the professionalization of game marketing management, all the pieces of the puzzle traditionally fit together precisely. For example, some audiovisual rights contracts that were signed long-term and long before the venues of the Games were known. Currently, the International Olympic Committee has a contract with NBC until 2032, worth US $ 7,566 billion since 2014. This has provided enormous stability to the financing of the Olympic project. The solidity and economic success of the Olympic project were based on a world of certainties, thinking in the long term, and now this great global crisis in health and economy is moving us all on the ground we are on. It is true that the organizational culture of the International Olympic Committee is to have everything hired all the time and at the moment it is not possible. This is the great crisis, not only for the Olympic family, but for all the citizens of the world, the world has become an uncertain and unpredictable structure for everyone. This will change the way we think and act, there is no doubt.
With your experience studying sports media, do you think the press coverage of the Olympic Games will be very different after this pandemic?
I can’t imagine different games from a media point of view. It may be that, in the worst case, the Games have to be held without an audience, I do not want to think about it, but in reality the important public is not local, but global, and the Games will have them because, as the (former ) (IOC) President Jacques Rogge, the Olympic Games held primarily on television, and would add in the digital media. The games will have high definition hologram techniques, virtual reality, robot assistants in stadiums. In turn, 5G will guarantee a high speed and broadband connection, the performance of the TV will be brilliant.
However, there is no demand crisis, because now there is and in a year there will be a world demand for a sporting event of interest such as the Olympic Games.
Speaking of athletes and the post-quarantine economy: will more countries like Spain suffer to recover and prepare their teams for the Tokyo Olympics? Or do countries with more social problems tend to suffer more in the midst of the recession, and therefore also suffer more to adequately prepare their athletes for 2021?
The pandemic is not a problem in Spain or Italy, but a worldwide problem. We must be aware that as long as there are cases in any country and we do not have a vaccine, the danger will be with all of us. European countries that guarantee universal access to medical care face problems in the midst of this pandemic, so I don’t want to imagine what would happen in developing countries without these health structures. I hope that we can contain the epidemic before the winter of the southern hemisphere. In Europe, there is already talk of the end of spring for the return of competitions, mainly in elite soccer. This will allow money to go back to sports, minority sports and their federations will benefit from it. If it is possible to contain the virus, athletes will be able to train with caution and we hope that in 2021 the Games will develop normally.
This is the great crisis, not only for the Olympic family, but for all the citizens of the world, the world has become an uncertain and unpredictable structure for everyone. This will change the way we think and act, there is no doubt.
Tokyo Bay – Photo: ZhangXun / Getty Images