The BOA, which is facing a £10 million funding gap ahead of the Olympics, has claimed it did not get a fair deal when an agreement over sponsorship income was struck with the London Organising Committee for the Olympic Games (LOCOG) in 2005.
Specifically, the two parties have been unable to agree on whether net costs involved in the staging of the Paralympic Games should be separated from any operating profit generated by the Olympics. The BOA is due to receive 20% of any surplus, but its belief that the costs should be separate is at odds with LOCOG.
Critics of the BOA say they have embarked on an unnecessary spending spree, with accounts showing that the body’s overall salary bill has more than doubled from £2 million to £5 million since 2005. However, a statement from the BOA read: “As the National Olympic Committee, our principal responsibility is to safeguard future opportunities for Olympic athletes and sport throughout the United Kingdom.”
The statement added: “We are engaged in a formal process to ensure that any surplus resulting from the London 2012 Olympic Games is used for precisely those purposes. Quite simply, our objective is this: to guarantee that the London 2012 Olympic Games deliver a meaningful post-Games legacy that is beneficial to Olympic sport and athletes, present and future, throughout the UK.”
LOCOG responded with a statement that read: “The vision for London 2012, created by the BOA, Government and the Mayor of London and set out in the bid book is for one festival of sport, with an integrated Olympic and Paralympic Games, underpinned by a single budget. It is sad that this vision is now disputed by the new leadership of the BOA. We are grateful that the IOC is helping to resolve the issue.”
