Olympic sponsors canceling promotional events: report

Olympic sponsors canceling promotional events: report
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Olympic sponsors are canceling promotional events as the games face a number of challenges from the pandemic, sources told Reuters.

More than a dozen companies are reportedly canceling or cutting back booths and promotional parties due to the ever-changing rules and regulations organizers are putting on the companies.

Sources tell Reuters that companies have been struggling with “impromptu” and late decisions, such as the months-long deliberations over whether spectators could attend. Local fans were banned Thursday after an earlier decision that sites would be limited to 50 percent capacity.

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"We are finally making decisions on our own, without waiting for the organisers' cue," an employee with one of the sponsors told Reuters. 

“It's a 'damned if you do and damned if you don't' situation for sponsors, but everyone is starting to take action,” the source added.

Two people with knowledge of the matter say Camera maker Canon Inc. and Tokio Marine & Nichido Fire Insurance Co. canceled plans for promotional booths.

At least 14 companies have canceled or downsized parties planned for the country’s top chief executives and other clients, a source told Reuters.

Multiple sources also blamed some of the cancellations on how unpopular the games have become this year as many say it is too dangerous to have them. 

About 60 companies paid more than $3 billion for sponsorship rights for the Tokyo Olympics after the games were postponed last year due to the pandemic, the news service noted.

As Tokyo goes back into a state of emergency, residents are being advised to avoid extra events or activities that could contribute to the spread of the coronavirus.