Japanese Olympics sponsors are cancelling or scaling back booths and promotional events tied to the Tokyo 2020 Games, frustrated by “very last minute” decisions by organisers and a delay on whether spectators would be allowed, sources told Reuters.
The moves by more than a dozen companies, including Canon, Tokio Marine & Nichido Fire Insurance and Ajinomoto, highlight the delicate situation for sponsors, who have tied themselves to a Games now hit by the COVID-19 pandemic and public opposition, a Reuters dispatch from Tokyo stated.
Olympics organizers are set to ban all spectators from the #Tokyo2020 Games, the Asahi daily said, as Japan declared a coronavirus state of emergency for Tokyo that will run through its hosting of the event to curb a new wave of infections.
Some 60 Japanese companies paid a record of more than $3 billion for sponsorship rights and then another $200 million to extend their contracts after the Games were delayed last year due to the pandemic. Unlike “worldwide partners” with multi-year deals, domestic sponsors are only involved in the Tokyo Games.
They have been frustrated by what one of the sources described as “impromptu” decisions by organisers, particularly the months-long delay on whether spectators would be allowed.
Organisers had banned overseas spectators and planned a cap on domestic viewers at 50 per cent of capacity, or up to 10,000 people.
But now just two weeks away from the start, Japan is likely to ban all spectators, as it prepares to declare a state of emergency for Tokyo that will run through its hosting of the event.
Tokyo recently reported 920 coronavirus cases in one day, the most since May.
“We are finally making decisions on our own, without waiting for the organisers’ cue,” said one source, an employee at one sponsor, who, like other people interviewed, declined to be identified because the information is not public.
“It’s a ‘damned if you do and damned if you don’t’ situation for sponsors, but everyone is starting to take action,” said one of the sponsors.
Tokyo 2020 said they could not immediately reply to a request for comment due to enormous amounts of inquiries.
Organisers are set to formally reach a decision on spectators later on Thursday, the Asahidaily said.
Sponsors have also downgraded entertainment plans for clients, including Japan’s top chief executives, according to the employee at a sponsor.
Companies had planned parties with private cars, lounges and celebrity guests but by June those were reduced to Olympic tickets with hotel stays or gifts, the employee said.
Some 14 sponsors are now scrapping or further scaling back their plans, the employee said.
Seasoning maker Ajinomoto decided last month to scrap its hospitality programme and no longer plans to give away tickets to consumers, a spokesperson said.
A Panasonic spokesperson declined to comment on the details of its hospitality programme, but said it could be changed or cancelled depending on the pandemic situation.
Some companies are also worried about being associated with the Games that are unpopular with the public, multiple sources have said. Most Japanese are against the Games going ahead, polls have shown.