Olympics-Frustrated by delays, Tokyo 2020 sponsors cancel booths, parties -sources

Ajinomoto Co

08/07/2021 08:30

* Japanese sponsors scrap plans for promotional events
-sources
    * Organisers to meet Thursday, reach decision on spectators
-paper
    * Firms worry being linked with Olympics will be unpopular
-sources

    By Eimi Yamamitsu and Maki Shiraki
    TOKYO, July 8 (Reuters) - 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.
    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% of capacity, or up to 10,000 people.
    But now just two weeks away from the start, Japan is likely
to ban all spectators https://www.reuters.com/world/asia-pacific/japan-set-declare-state-emergency-tokyo-area-through-aug-22-minister-2021-07-08,
 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.
 urn:newsml:reuters.com:*:nL2N2OJ019
    "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."
    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 Asahi daily said.
    
    PROMOTION BOOTH
    Camera maker Canon Inc  7751.T  and Tokio Marine & Nichido
Fire Insurance Co, a unit of Tokio Marine Holdings Inc  8766.T ,
have scrapped plans to set up promotion booths along the
"Olympic Promenade", two people familiar with the matter said.  
    The area, on the Tokyo waterfront, was supposed to feature
"cool spots, rest areas and dining spaces" and be open to
spectators and non-ticket holders, according to organisers.
    But organisers have urged spectators to travel directly to
and from venues without any detours and that is a "huge factor"
against setting up booths, one of the people said, as it means
spectators, if allowed, will not be able to visit booths.
    Canon had planned to set up a photo spot for visitors, the
person added. The company declined to comment.   
    A spokesperson for Tokio Marine & Nichido Fire Insurance
said it does not have plans for a booth at the moment.
    However, Swatch Group's Omega brand, a global sponsor, and
domestic sponsor Eneos Holdings Inc  5020.T  told Reuters they
would go ahead with plans for booths.
    Booths along the promenade are likely to be cancelled if
spectators are banned, a person at the organising committee
said. 
    Tokyo 2020 said plans for the area had not been called off
and it was finalising a list of sponsors who would participate.
    Sportswear maker Asics Corp  7936.T  called off a planned
public unveiling of a four-metre tall monument of Japanese table
tennis star Kasumi Ishikawa in Tokyo's Shibuya area.
    The company worried the monument - dubbed "Big Kasumi" -
would attract a crowd. It is being stored in an Asics warehouse
until another location is determined, a spokesperson said.
    
    NO TIME TO PARTY
    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  2802.T  decided last month to
scrap its hospitality programme and no longer plans to give away
tickets to consumers, a spokesperson said.
    A Panasonic  6752.T  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.  urn:newsml:reuters.com:*:nL2N2NP0GO 
    One source at a sponsor company said there was concern the
public would feel it "unfair" that sponsors could attend instead
of other ticketholders. "It's an awkward situation." 
    Companies are also worried about bad publicity if their
executives are shown on live television in the stadium.
    An executive at one sponsor recalled watching celebrities at
a major world sporting event being shown close up.
    "Their faces were clearly shown," the executive said.
    "Any well-known top executive would certainly stand out in a
bad way at the Olympics, if they're zoomed in on like that."

 (Reporting by Eimi Yamamitsu and Maki Shiraki Additional
reporting by Ritsuko Shimizu, Yuki Nitta, Ami Miyazaki and Tim
Kelly; Editing by David Dolan and Himani Sarkar)
 ((eimi.yamamitsu@thomsonreuters.com;))