International Paralympic Committee (IPC) President Andrew Parsons has acknowledged the organisation faces cashflow issues, with some broadcasters seeking to delay payments due to the postponement of the Tokyo 2020 Paralympic Games.
Parsons said the organisation were currently reviewing 150 contracts related to the Paralympic Games, which were rescheduled from 2020 to 2021 earlier this month.
He said the IPC had already identified more than €1 million (£877,000/$1 million) in savings, roughly five per cent of their 2020 budget, as they adjust to the postponement of the Games and the impact of the coronavirus pandemic.
The IPC 2018 financial report showed a budget of €24 million (£21 million/$26 million).
Parsons said broadcast and commercial partners had been supportive of the decision to postpone the Paralympic Games, while adding that he understood why some had asked to delay payments.
He stressed that the IPC would not lose money due to the postponement, but admitted the postponement had created a cash flow issue.
“Like all businesses we are tremendously affected by the COVID-19 crisis,” Parsons said on a media teleconference today.
“One immediate aspect of the Games postponement is a change in the cash flow of the IPC.
“This week we have nearly completed an exercise reviewing more than 150 contracts that are Games related and we are embarking on negotiations to best resolve these changes.
“One example is the broadcasters.
“Some of them have already asked if they can delay final payments to 2021, which we can understand as the product will be delivered in 2021.
“All of our partners have been hugely supportive, we had a call with our commercial partners where they asked what they could do to help us and the athletes.
“It was really positive to hear this attitude, with the relationships that we have been building for years.
“Of course we have less income in 2020 due to the postponement.”
Parsons added that the IPC had not requested any financial support from the International Olympic Committee (IOC) to combat the cash flow issue, saying the organisation would seek to solve the issue internally.
He confirmed that although there were cash flow issues, the IPC had no plans to let staff go.
The IPC President also said the organisation were in contact with National Paralympic Committees (NPC) to address issues they may experience during the pandemic or due to the postponement of the Paralympic Games.
Several NPCs have paid entry fees and for hotel accommodation at events, which have been impacted by cancellations or postponements.
Parsons said the organisation were hopeful that NPCs which have already paid for accommodation for Tokyo 2020 could see their agreement remain in place for their rescheduled Paralympic Games in 2021.
“Cancelled events and changed plans come at a cost to our members, who are normally not big and rich organisations,” he said.
“They are not immune to the financial problems that come with COVID-19.
“Some have already paid entry fees, hotels and tickets for events that have been cancelled so we are helping them with that and liaising with the local organising committees on how some of this money can go back to the National Paralympic Committees.
“The best-case scenario is that the hotels where there is already an agreement for this year can offer the same service next year without having to charge a penalty fee.”
Parsons thanked athletes and NPCs for their support during the coronavirus pandemic, which has seen more than 1.4 million cases worldwide and over 84,000 deaths.
He said the Paralympic Games, now scheduled for August 24 to September 5 in 2021, could be a "sporting and humanitarian triumph".