Tokyo Olympics 2020: Brands may take a hit as coronavirus casts shadow over Games

There is uncertainty looming over the biggest sporting event in the world. Tokyo Olympics which is scheduled to start from July 24 may either see empty stadiums or get cancelled.

While International Olympic President Thomas Bach has ensured that Olympics 2020 will go on as per schedule, the rising cases of coronavirus in the world are threatening the Tokyo Games.

Everyone is waiting with bated breath to know the fate of Tokyo Olympics and this includes players and brands.

Talking about brands, revenues to the tune of $3.1 billion is estimated to come from local sponsorship agreements between Japanese companies and brands, according to Sandeep Goyal, chairman, Mogae Media, a Mumbai-based marketing and communication agency.

When it comes to sponsorship revenues, Rio Olympics had minted around $1.2 billion and London in 2012 had garnered $1 billion, he said.

And for Tokyo Olympics, brands were more excited than ever to be a part of one of the better-organised Olympic Games where Japan intended to show its culture and technology.

One such brand is Airbnb that, prompted by the acute shortage of hotel rooms in Rio, was hoping for a big breakthrough in the tough Japanese market by shifting demand for accommodation during the Games to private homes, said Goyal.

“Airbnb plans to use the Olympics exposure to help its planned IPO this year. However, some of these plans may now be jeopardised,” he added.

Like Airbnb, other brands also have big plans for the Tokyo Olympics.

Goyal said that all of the 72 sponsors for the Tokyo Olympics have spent the last few years in planning products and services for Tokyo this summer. “A cancellation of the Games would be a huge setback to these plans and launches,” he noted.

Instead of cancelling the Games, there is a high probability of Tokyo Olympics being postponed.

Nonetheless, if the Tokyo Olympics does take place it may not be the world games that they were originally envisioned when awarded to Tokyo, says Goyal.

And this is because some countries where there are a high number of cases reported of coronavirus have been banned from sending teams. Plus, some athletes are reluctant to compete at the 2020 Olympics.

The International Shooting Sport Federation (ISSF) recently issued a statement saying that member nations are free to take a call on their participation in the Tokyo Olympic Test Event.

In addition, the Asian 20km Race Walk Championships in Japan which was scheduled for March 15, where 13 Indians were to take part, has been cancelled due to the outbreak.

The Asian Olympic Wrestling Qualifiers were deferred as Kyrgyzstan government issued a directive to stop and defer all sports events in the country till next order in the wake of the coronavirus spread. And this led to the postponement of the Asian Olympic Qualifiers.