Glasgow 2014 Budget Rises To £454m

The budget for the 2014 Commonwealth Games in Glasgow is to be increased by £81m to a total of £454m.

The announcement follows a review by financial advisers PricewaterhouseCoopers with the bulk of the additional cash coming from the Scottish government although the city council will provide an additional £9m.

The Scottish government will contribute an additional £39m, plus a further £20m from a reserve fund. A total of £13m will be raised through commercial activities.

Glasgow 2014 Limited, said a number of factors including legislative changes, and in particular rising broadcasting costs, had contributed to the budget increase.

An extra £41m will go on the ‘core budget’ for the Games, a rise from £333m to £374m

Lord Smith, chairman of the organising committee, said the cost of delivering the broadcast signal had increased ‘dramatically’ due to advances in technology, including the introduction of high definition, and the failure to sell the domestic rights to the BBC.

Lord Smith said: ‘Previous Games have been able to offset the host broadcast costs against the sale proceeds for the domestic rights.

‘At this stage the organising committee has been unable to engage the BBC on this basis and with the current categorisation of the Commonwealth Games as a B list event, is unlikely to be able to secure another domestic broadcaster. In effect, the Commonwealth Games is viewed as a ‘BBC event’.’

The government’s B-list of ‘Crown Jewels’ sporting events requires highlights to be shown on free-to-air terrestrial TV although this ruling is under review and a recommendation last week suggested that the entire B list should be scrapped.

Organisers said an extra 100 staff will be needed to host the Games, bringing the total to between 950 and 1,000.

Speaking at a press conference at Hampden Lord Smith added: ‘None of the Games’ partners want a position to emerge where the budget keeps creeping up over the period between now and 2014, so we have approached this exercise with a desire to be as realistic as possible.

‘We are all united in the belief that these Games can be the catalyst for significant change, and that they will generate enormous sporting, social and economic benefits for the whole of Scotland.

‘We are confident that the budget announced today will enable all those potential benefits to be realised.’

First minister Alex Salmond said: ‘This necessary budgetary increase is challenging for the public purse but the funding boost is good news for 2014 and will ensure an exciting, efficient and effective event.

‘Of course this funding represents an enormous commitment to Glasgow but the benefits and value will be felt throughout Scotland.

‘There are still issues to be resolved. The Scottish government will continue to make the case for the recovery of £150m lottery funds diverted from Scotland to pay for the London Olympics, and to call for Scotland to receive its share of Olympic regeneration investment.’