IOC Favours Locog In Funding Row
The International Olympic Committee (IOC) has ruled in favour of the London Organising Committee (LOCOG) in its row over funding for the London 2012 Games with the British Olympic Association (BOA).
The BOA believes its cut of any surplus should be based solely on the Olympic Games, but the IOC has backed the position of LOCOG – who believe the deal struck with the BOA in 2004 is fair.
The BOA is due to receive 20 percent of any surplus sponsorship and ticket money after the Games, but is now fighting for a larger cut, claiming the cost of staging the Paralympics should not be taken into account when calculating the remaining funds.
The BOA will now press ahead with its plans to take the matter to the Court of Arbitration for Sport (CAS).
The court is the final adjudicator in disagreements between sporting bodies or individuals.
A BOA statement said: ‘Decisions made by CAS are final and binding, and CAS is the agreed forum for resolution as specified by the Olympic Charter and the key contractual agreements between the various Olympic stakeholders’.
‘We are confident this will result in a solution that is equitable for all, and will ensure the London 2012 Olympic Games serve as a catalyst for the continued growth of sport, and expanded levels of support for athletes, throughout the UK’.
The case revolves around whether or not the BOA is entitled to a share of the surplus from the Olympics alone, or the Games and Paralympics combined – a crucial distinction because the Paralympics will need to be subsidised, whereas the Olympics could potentially turn a small profit.
The IOC however, has ruled that the two Games should be tied together.
An IOC statement read: ‘Having studied the documents and the past recent history of the Games bidding process, we have decided that the word ‘surplus’ clearly represents the financial results from the staging of the Olympic Games and the Paralympic Games combined’.
