Will the Tokyo Olympics really happen?
With the Olympics now just six months away, insurers are saying they face “mind-blowingly” large cancellation losses if the Summer Games do not take place as scheduled, Reuters reports.
Much of Japan is now under a state of emergency in the third wave of its coronavirus outbreak. Organizers last week played down doubts about whether the Games could happen, but without giving a guarantee, and the competition is likely to top the agenda when the International Olympic Committee’s executive board meets this week. Clarity is needed soon: The torch relay is set to start in late March, with the Games officially starting on July 23.
Event insurers have had a tough year as a result of the pandemic, but canceling the Olympics would be “by far the largest” loss in the industry, one brokerage director said.
Financial implications: The I.O.C. earns billions from the Summer Olympics, and billion-dollar broadcast and sponsor deals are at risk. A big barrier to postponing is the cost of extending contracts for another year, The Associated Press reports.
The New York Times
