HomeNewsFinance & LawPara SportGlobal

IPC makes €1.7m in savings in revised budget, ‘confident’ in Tokyo 2020 plans

IPC president Andrew Parsons at the 2019 World Para Athletics Championships in Dubai (by Moto Yoshimura/Getty Images)

The International Paralympic Committee (IPC) has said it has already made savings of €1.7m ($1.9m) following the postponement of this year’s summer Paralympic Games, adding it has been “reassured” by plans being put into place by Tokyo 2020 to stage next year’s event.

The IPC yesterday (Wednesday) concluded four days of meetings during which its governing board discussed the impact of the Covid-19 pandemic across the Paralympic Movement, including the Tokyo 2020 Paralympic Games and the knock-on financial effect of the crisis.

On Tuesday, the Board endorsed the positioning, principles for re-planning, and a roadmap to the 2021 Games following a video conference presentation by Yukihiko Nunomura, Tokyo 2020 deputy director general and chief operating officer.

In April, the IPC admitted it faces a cash flow problem in the wake of the postponement of the Games, but maintained it won’t turn to the International Olympic Committee (IOC) for further assistance.

In March, Tokyo’s Paralympics were rescheduled to run from August 24 to September 5, 2021, as the Japanese capital’s Olympic Games were handed new dates amid the Covid-19 pandemic. Speaking during a teleconference with reporters, IPC president Andrew Parsons said that the governing body was seeking to cut five per cent from its budget.

The IPC’s financial report for 2018 showed that both revenues and expenditures surpassed €24m for the year. In the area of marketing and broadcasting fees from Paralympic Games organising committees, sponsorship and fundraising efforts, a total of €10.9m was generated in 2018. The report was the IPC’s first to cover the organisation’s major new collaboration agreement with the IOC, which runs from 2018 to 2032.

The IPC yesterday said its governing board was updated by chief executive Mike Peters on the impact the pandemic has had so far on the governing body, including its finances.

Members of the IPC management team will continue to work remotely until at least August 1 and, since July 1, 19 staff members have taken furlough due to a decrease in their day-to-day workload.

Following the postponement of the Tokyo 2020 Paralympic Games, the governing board approved an updated and balanced budget for 2020. This included the savings of €1.7m that had been made by operational departments. Framework budgets for 2021 and 2022 which highlighted the impact the pandemic could have on the IPC’s finance over the coming years, were also presented this week.

Meanwhile, the IPC said Tokyo 2020’s positioning document highlighted the organising committee’s commitment for the Paralympics in 2021 to be a “global celebration of human endeavour, resilience and hope”. It added: “With athletes and sports placed at the heart of the Games, Tokyo 2020 believe the Paralympics will be a spectacular showcase of sport, with Para athletes entertaining the world and advancing a more inclusive world.”

Following the meetings, Parsons said: “Much of the meeting was dominated by the impact of the Covid-19 pandemic not just on the Tokyo 2020 Paralympic Games, but across the IPC and wider Paralympic Movement.

“The Tokyo 2020 presentation was reassuring and gave the board confidence about the measures the organising committee is taking to re-plan the Paralympic Games next summer. Classification ahead of the Games is clearly going to be a challenge for everyone due to the uncertainty of the sporting calendar, but the IPC management team is planning for multiple scenarios and proposing a range of solutions.”