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Here's Who Could Take A Massive Hit If The 2020 Olympics Were Canceled

The 2020 Summer Olympics are scheduled to be held in Tokyo, Japan from July 24 to Aug. 9. International Olympic Committee member Dick Pound told the Associated Press Tuesday that a decision on whether to cancel the Olympics due to the COVID-19 virus outbr

Benzinga · 02/28/2020 13:15

The 2020 Summer Olympics are scheduled to be held in Tokyo, Japan from July 24 to Aug. 9.

International Olympic Committee member Dick Pound told the Associated Press Tuesday that a decision on whether to cancel the Olympics due to the COVID-19 virus outbreak will need to be made by May.

So, what would happen if the Olympics were canceled?

Media

In 2009, Comcast Corporation (NASDAQ: CMCSA) announced it would acquire a majority stake in NBC.

In 2011, NBC agreed to pay $4.38 billion for the U.S. media rights to four Olympic games from 2014 to 2020, according to CNN Business. Comcast made $1.62 billion in revenue from the Olympics following the 2016 summer games. 

If the 2020 Summer Olympics are canceled, Comcast appears poised to lose revenue. 

Retail

When Under Armour Inc (NYSE: UAA) reported third-quarter earnings results Oct. 25, 2016, they included that year's Summer Olympics. 

The company said international revenue at the time increased 74% year-over-year to $226 million in the third quarter to reach 15% of total revenue. On a currency-neutral basis, international revenues increased 80%.

On Feb. 5, 2020, Nike Inc (NYSE: NKEsigned a deal with the International Olympic Committee to remain the U.S. Olympic Committee sponsor through the Los Angeles 2028 Games.

“The items that debuted Wednesday cover the U.S. basketball, skateboarding, track and field, and soccer kits. The uniforms unveiled on Wednesday also include the countries Brazil, Nigeria, Jamaica, and South Korea among others” the report said.

Nike is at risk of not being able to advertise its company during one of the most-watched sporting events. The company could also lose opportunities to expand international sales and its customer base.

Japan

On Dec. 20, 2019, the Los Angeles Times reported Japan could spend more than $26 billion on the summer games. 

“Various calculations by Japanese media have placed overall spending between $26 billion and $28 billion, more than tripling the cost officials predicted when the International Olympic Committee selected the Japanese capital as host in the fall of 2013,” the Times reported. 

Photo/Map: Arne Müseler / arne-mueseler.com / CC-BY-SA-3.0