Japanese Olympics sponsors are canceling or scaling back booths and promotional events tied to the 2020 Tokyo Games, frustrated by "very last minute" decisions by organizers as well as delays on whether spectators would be barred from the event, sources said. The decision to ban spectators from Olympic venues in Tokyo and nearby prefectures was confirmed by organizers late Thursday.
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.