There’s no solution. It’s a lose/lose issue at this point. There’s already of shortage of hosts, and now very few countries are seeing an economic benefit in the events that they are hosting.
More than just World Athletics (no longer IAAF ) will be affected by the Olympics moving. Many smaller, but vital events, will be affected as well, and it would take years for them to recover from this.
The problem with moving the World Athletics Championships from Eugene is the amount of money they’ve invested into them. Why would any country to pay to host the championships, upgrade their venues, upgrade their public infrastructure, etc. if there’s no guarantee the events will happen (same goes for potential Olympic hosts).
FINA would lose so much money because of that though, and so would the Japanese government. I agree the Universaide might not be affected, but the field of athletes would be weaker than what we’ve seen in the past few editions. World Games wouldn’t be affected athlete wise, but they’d take a huge market hit. The World Games need protection as well, because they are just as vital to international sports as the Olympics (and that’s according to Thomas Bach). There are dozens of sports that require the World Games to stay in operation. Olympics sports have larger and more supportive fan bases, so they could survive a cancellation, but I fear many of the World Games sports couldn’t.
I’m not actually sure how much World Athletics, FINA, IJF, etc. need the Olympics. I think they make more physical capital off their markee events, but I could be wrong. I just think there are a lot of negatives that come with postponing the Olympics, and it’s a messy issue. I’m not sure the Olympics can survive cancellation either. There’s just no good options here really.