The Tokyo Olympics won’t have spectators and that could cost reinsurers up to $400 million in payouts for ticket and hospitality refunds, according to Fitch Ratings.
After a COVID-19 outbreak and a fourth state-of-emergency declaration, the Japanese Olympic Committee said that no fans, foreign or domestic, will be allowed to attend.
The total insurance coverage for the Games that begin on July 23 is estimated to be around $2.5 billion.
- Broadcasters have taken out $800 million of coverage.
- The International Olympic Committee and local host committee took out $1.4 billion.
- Other parties, such as individual teams and sponsors, took out another $300 million.
Approximately 600,000 tickets were sold to international fans, with around 68,000 American anticipated. Total ticket revenue was expected to reach $815 million.
There has been an abundance of refund requests — some reaching more than $10,000 — from fans who purchased tickets years ago.
CoSport, the exclusive rights holder for Olympic ticket sales in the U.S., will not refund a 20% handling fee for American fans, adding to the madness.