Spectrum: Vol. 83, No. 4.2 (April 4, 2020)

2020 Olympics Postponed

Nicholas D’Abate ‘21 Staff Writer

In just three weeks’ time, COVID-19 has altered the activities and behaviors of mankind in a way that we have never witnessed before.

COVID-19 poses a threat so severe that billion-dollar industries and events are shutting down as people around the globe are now mandated to stay in their homes indefinitely.

Now, for the first time in its history, the Summer Olympics have been postponed.

Japan’s Prime Minister Shinzo Abe, along with the International Olympic Committee (IOC), finally settled on postponing the games on March 30. The opening ceremony is to begin on July 23, 2021, and curtail on August 8, 2021, along with the Paralympics, beginning August 24, 2021 and ending September 5, 2021.

Much like the NCAA, as conferences such as the ACC and the Big 12 opted out, ultimately leading to the cancellation of the March Madness tournament, Olympic teams from Canada, Australia, and the United States all stated that they would not send athletes to this year’s Olympics.

The actions of teams within these lucrative operations forced the hand of these leaders, who now are faced to think about what’s best for the people versus financial interest. But this setback could have major economic implications as well.

Japan is estimated to incur a loss of roughly 600 billion yen, equivalent to about 5.5 billion U.S. dollars, while worldwide businesses such as big Olympic sponsors like Coca-Cola and McDonald’s will also take a hit. However, their losses may not be as detrimental as those of the airline and bar and restaurant industries in Tokyo especially.

According to ESPN and Katsuhiro Miyamoto, a professor of sports economics at Kansai University, the costs could be as high as $4 billion, accounting for the expenses of stadium maintenance, refitting them, paying rentals, penalties, and other expenses. Japan is now likely spending around $12.6 billion to host the 2020 Olympics.

The overall impact of the coronavirus may not be fully tangible at the moment; however, in a few years we may be able to fully understand how deeply this pandemic has affected society and the global economy alike.