London 2012 - BOA and Locog settle funding row

April 20, 2011 - 0:0

British Olympic Association officials have accepted defeat in their row with Olympic organisers Logoc over next year's Games profits.

An agreement between the parties was concluded last night following a fortnight of talks.
The BOA had wanted its 20 per cent share of Games revenue, guaranteed by the host city contract, to be allocated from Olympic income only.
Seb Coe's Locog though were adamant they were running a budget for the Olympics and Paralympics and any surplus would only be assigned after both events had been concluded.
Their position was backed by the International Olympic Committee, International Paralympic Committee and senior government officials but BOA chairman Colin Moynihan had threatened to take the matter to the Court of Arbitration in Sport before suspending legal action two weeks ago.
Moynihan and chief executive Andy Hunt had both been suspended from London 2012 board meetings because of the row, which was slammed as an 'embarrassment' by Olympics minister Hugh Robertson.
""I am glad this issue has been put behind us and we can all get on with delivering Games next year that will make this country proud,"" said London 2012 chief executive Paul Deighton.
""I would like to thank Andy and his team for creating the right environment for us to reach this settlement.
Currently the two organisations are locked into a disputed joint marketing agreement, with the the BOA transferring all their powers to raise sponsorship to the organising committee, in return for 30m over seven years - an amount they had claimed was insufficient, leaving a 1.5m shortfall in their planning budget for next year's Games.
Despite the settlement, money will not exchange hands - a major climbdown for Moynihan and Hunt. However, Locog's commercial department, which has raised a record 750 million to fund the Games, will provide advice about securing the BOA sponsorship revenue for the next Olympic cycle towards Sochi and Rio.
In addition, Locog has agreed to waive its royalties on two items of iconic Team GB merchandise, thought to include the Team GB football shirt, meaning proceeds will go exclusively to the BOA.
The national Olympic committee will also have the chance to purchase additional Olympic tickets and Locog have agreed to increase support for Team GB's operational planning.
It has also been agreed, in principle, that both Moynihan and Hunt will resume their positions on Locog's board, although that decision must still be confirmed by other members.
""We appreciate the spirit of partnership and cooperation that Locog brought to our discussions,"" said BOA chief executive and Team GB chef de mission Hunt.
""We are proud of our long standing partnership with Locog and the outstanding work being done by all of the sport stakeholders to deliver what will undoubtedly be successful Games.
""With this matter now resolved, the BOA will be able to keep its attention focused entirely on our preparations to support Team GB at the Games.""
(Source: Eurosport)