Boa Forced To Take £2m Advance From Locog
The British Olympic Association made a £1.5m loss for the last twelve months and were forced to take a £2m advance payment from London 2012 organising committee LOCOG to balance the books.
The loss revealed in the BOA’s annual financial report for 2008 follows a deficit of £1.3m in the preceding year, and saw £368,000 spent on consultants alone with other major costs revolving around funding, transport and accommodation for TeamGB ahead of last year’s Olympics in Beijing.
There are also question marks about the amount of money being spent by Sir Clive Woodward on the multi-million pound BOA coaching academy which is still without a sponsor.
The BOA and LOCOG have a Joint Marketing Programme Agreement covering a number of commercial rights, which is worth about £30m to the BOA over the seven-year period leading up to 2012.
That £2m payment had not been due until 1st July 2009, but was given in advance, with 4% interest subtracted, in order to ease the BOA’s cash flow problems.
BOA chief executive Andy Hunt said: ‘Over the course of the past 12 months, the BOA has undergone some significant changes.
‘Its culture is becoming more dynamic and modern, its strategy has become clearer, and it is better placed to cope with the tough financial environment. We see all this as an important investment in the future of British Olympic sport.’
The news came ahead of the BOA’s annual general meeting where chairman Lord Moynihan will face tough questions about its finances and whether they are being overstretched ahead of London 2012.
The BOA is also set to announce that it is moving from its headquarters in Wandsworth in South West London, which have been sold, to a rented property in the centre of the city.
