Deal Reached Over London 2012 Profits Row
The “embarassing” cash dispute that was threatening to overshadow the London 2012 Olympics has been resolved.
The British Olympic Association (BOA) have abandoned legal action against London 2012 organisers after being forced to accept defeat. The BOA had taken London 2012 organisers to the Court of Arbitration for Sport over how any financial surplus from the Games would be calculated and divided.
They are due 20% of any profits after the Games but argued the cost of staging the Paralympics should not be taken into account when the calculation is made. As part of the agreement the Games organising committee Locog will waive rights to royalties on two items of Team GB merchandise and will allow the BOA to buy extra Olympic Games tickets.
BOA chairman Colin Moynihan and chief executive Andy Hunt had both been suspended from London 2012 board meetings because of the wrangle. Commenting on the agreement, Mr Hunt said: “We appreciate the spirit of partnership and cooperation that Locog brought to our discussions.
“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.”
Locog chief executive officer Paul Deighton added: “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.
“I would like to thank Andy and his team for creating the right environment for us to reach this settlement.”
The settlement confirms all previous financial arrangements between the two organisations. All that has changed is the waiving of royalties and the extra tickets for the BOA. These will be used by as part of their Team 2012 appeal and for a number of former athletes who have competed at the Olympics.
London 2012 will also “pro-actively support” the BOA’s efforts to secure sponsors and other commercial partners for the 2013-2016 period. London 2012′s board have agreed “in principle” to lift the suspension against Mr Moynihan and Mr Hunt and will ratify this before the next board meeting in May.
Olympics minister Hugh Robertson called the dispute “an embarrassment”, while IOC president Jacques Rogge was said to be furious with the legal move after the international body had ruled against the BOA.
The settlement comes after the London 2012 ticketing system was branded “confusing” by the leading consumer magazine Which?
