IOC reports deficit of Rs. 10.9 billion in 2020
2 years ago
The postponement of the Tokyo 2020 Olympics has, as expected, taken a heavy toll on the International Olympic Committee’s (IOC) financial performance in 2020. The Lausanne-based sports body has reported a deficit of $ 55 million (Rs. 10.9 b) for the year 2020.
IOC might have expected a 2020-revenue of not far short of $ 4 billion (Rs. 797.9 b) but for the unexpected coronavirus pandemic. But now the actual figure, according to newly-published accounts, is $ 623.8 million (Rs. 124.4 b), the Inside Games reported on Tuesday (20).
IOC had managed $ 3.52 billion (Rs. 702 b) in the last Summer Olympic Games in Rio year in 2016.
From marketing rights
The big absence is Tokyo 2020 broadcasting-rights income, which instead now looks set to be taken in the current financial year, once the Games have been duly delivered and consumed by their global audience, reported David Owen of the Inside the Games.
In 2016, TV rights contributed $ 2.87 billion (Rs. 572.5 b) to revenue; in 2020, they chipped in only just over $ 1 million (Rs. 199 m).
The vast bulk of income in the latest period came from marketing rights paid by multinational companies for participation in the IOC’s ‘The Olympic Programme’ (TOP) worldwide sponsorship scheme.
IOC hitting $ 2 billion target
The $ 532.4 million (Rs. 106 b) of revenue provided in 2020, means that by my calculations TOP has now generated not far off $ 2.2 billion (Rs. 438.8) --though by no means all in cash-- for the IOC over the Pyeongchang 2018-Tokyo 2020 cycle.
This means that, in spite of coronavirus, the IOC has hit the $ 2 billion (Rs. 398.9 b) target as was first revealed by the Inside the Game six years ago.
Expenditure in 2020
It was only in the 2013-2016 quadrennium that TOP for the first time contributed more than $1 billion (Rs. 199.4) in cash and value-in-kind to the Movement.
Expenditures in 2020 totalled just under $ 800 million (Rs. 159.5 b).
Some $ 300 million (Rs. 59.8 b) of the TOP-derived income was distributed to various Games Organising Committees and National Olympic Committees (NOCs).
As in 2019…
The share of the United States Olympic and Paralympic Committee (USOPC) was put at $ 88.7 million (Rs. 17.6 b).
This was marginally below the $ 89.8 million (Rs. 17.9 b) paid in total to other NOCs.
As in 2019, the IOC was helped by a big chunk of financial income - $ 119.9 million (Rs. 23.9 b) in 2020, down from $ 159.6 million (Rs. 31.8 b) the previous year.
A breakdown indicated that $ 52.1 million (Rs. 10.3 b) of this came from interest and dividend income.