A three party meeting between Tokyo 2020, he Japanese Government and the Tokyo Metropolitan Government saw the allocation of additional costs following the postponement of the Olympic and Paralympic Games was agreed  ©Getty Images

Tokyo 2020 has claimed the postponement of the Olympic Games will cost $2.8 billion (£2 billion/€2.3 billion), as the Organising Committee confirmed how the additional costs would be allocated.

Japanese media reports last week claimed the postponement would cost $1.9 billion (£1.4 billion/€1.6 billion).

According to Reuters, Tokyo 2020 have now suggested the figure is higher at $2.8 billion (£2 billion/€2.3 billion).

The figure was revealed at a three-party meeting with representatives of the Tokyo Metropolitan Government and the Government of Japan.

The Tokyo Metropolitan Government will reportedly pay $1.1 billion (£820 million/€900 million), with Organising Committee contributing $1 billion (£740 million/€820 million).

The remaining $700 million (£520 million/€575 million) would be covered by the Japanese Government.

"In cooperation with the IOC and other relevant organisations, Tokyo 2020 will continue to work to minimise and reduce the additional costs of the Games, other than those related to countermeasures against COVID-19 infection," Tokyo 2020 said.

"Tokyo 2020, the Tokyo Metropolitan Government and the Government of Japan will each take responsibility for certain of the costs caused by the COVID-19 pandemic, based on the agreement.

"In the event Tokyo 2020 is not able to cover any of the costs allocated to it by means of revenue growth, the Tokyo Metropolitan Government will bear those costs.

"From among the additional budgeted areas, the Tokyo Metropolitan Government and the government of Japan shall in principle each be allocated an amount equivalent to one-half of the costs incurred as a result of COVID-19 countermeasures, in accordance with the interim summary published at the Coordination Meeting.

The Tokyo Metropolitan Government, led by Yuriko Koike, will have the greater share of the additional costs ©Getty Images
The Tokyo Metropolitan Government, led by Yuriko Koike, will have the greater share of the additional costs ©Getty Images

"However, the cost of the inspection system for athletes, etc. and of the Infectious Disease Control Centre being established by the Organising Committee will be covered in full by the Government of Japan, as it will serve as the central function for infectious disease control at the Games as well as supporting the border control measures being implemented by the Government.

"In addition, the Government of Japan will implement other measures in alignment with the basic policy approved by the Cabinet in November 2015 with the aim of ensuring the smooth preparation and operation of the Games."

Tokyo 2020 chief executive Toshiro Muto claimed their share would be covered by a contingency fund detailed in last year’s budget, additional sponsorship and insurance, according to Reuters.

Tokyo 2020 was set to cost around $13 billion (£9.7 billion/€10.8 billion) before it was postponed in March.

Of this, the Organising Committee was due to cover $5.8 billion (£4.4 billion/€4.8 billion), the Tokyo Metropolitan Government $5.7 billion (£4.3 billion/€4.8 billion) and the Japanese Government the remaining $1.4 billion (£1 billion/€1.2 billion) In May, International Olympic Committee (IOC) President Thomas Bach predicted the postponement of Tokyo 2020 would cost the governing body $800 million (£601 million/€669 million).

With $150 million (£113 million/€125 million) of this figure set to form an "aid package" for the Olympic Movement, the remainder was put aside for the organisation of the Games.

The IOC has reportedly waived any further additional royalties accrued by new sponsorship deals, which have been secured by Tokyo 2020.

Tokyo 2020 and the IOC announced 50 cost-cutting measures since the postponement, which they claim will save $288 million (£217 million/€241 million).

These include a cut to the number of officials attending the Games, infrastructure reforms that will reduce the amount of lighting and additional temporary power supplies for venues, and the elimination of ceremonies at the Athletes' Village and prior to the Opening Ceremony.

Tokyo 2020 will reportedly spend $960 million (£720 million/€801 million) on COVID-19 countermeasures.