Olympic Cash Row Brewing For Months
The Olympic cash row between the British Olympic Association (BOA) and the London Olympic Organising Committee (LOCOG), which has come to light over recent weeks, began 18 months ago – according to media reports.
The details of the row were disclosed in the British Olympic Association’s legal submission, which was sent to representatives of all 33 Olympic sports on Sunday.
It revealed details of the feud that began 18 months ago, in an entirely separate dispute, over a payment of £5m.
Under the terms of the Joint Marketing Programme Agreement, the BOA would be entitled to a £5m payment at the end of the London 2012 Games – as long as LOCOG raised around £500m from sponsorship, and the Games made a profit.
Around 18 months ago the sponsorship target was reached, prompting the BOA to open discussions with LOCOG about payment of the £5m.
BOA has struggled financially in recent years and an early payment of some, or all, of the £5m would have solved many of the financially problems.
Funding for the association comes entirely from commercial sponsors and fundraising, and receives no government funding.
LOCOG however, has pointed out that the money was conditional on the Games making a profit, and that there would be no payment if a surplus wasn’t made after London 2012.
The row has since escalated, with the International Olympic Committee being called to referee the feud, before the BOA took the case all the way to the Court of Arbitration for Sports.
