London 2012 Olympics: British Olympic Association alarmed by cash shortage for athletes at 'home' Games
The British Olympic Association has revealed it has insufficient funding to fulfil its core task of supporting the home team at next summer’s London Games.
Under scrutiny: Clive Woodward's plans to offer high-performance support for Team GB members at the London 2012 Games could be hampered by this cash shortage Photo: GETTY
By Paul Kelso 10:08PM GMT 02 Mar 2011
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It will now turn to the London 2012 organising committee and commercial partners to try to find the money it needs to avoid the embarrassment of failing to adequately support its athletes at a home Olympics.
The extraordinary admission follows a board meeting last week at which chairman Lord Moynihan revealed that on current forecasts it will not have enough revenue to meet its ambitions for the pre-Games training camp or athlete support.
The BOA would not disclose the size of the shortfall, but it faces increased costs in London as it supports the largest-ever British team of about 550 athletes, and is committed to host a pre-Games staging camp at Loughborough next year at an estimated cost of £5 million.
The vast majority of support for athletes is provided by UK Sport, which distributes around £100 million of Lottery funding each year but is not responsible for supporting the team at games-time.
“We’ve still got a gap to close,” BOA chief executive Andy Hunt said. “The level to which we can support the team, and therefore the fractions of a second between medals, that is where the challenge comes.”
BOA sources said on Wednesday night that the revenue gap was the result of its ambition to provide “high-performance support” for athletes.
Its core function is to kit out and support Team GB at Olympic Games, however, and the revelation that it has failed to budget to do so effectively in 2012, the most important year in its 106-year history, will be seen as an indictment of the organisation.
Under Lord Moynihan’s leadership the BOA has embarked on an ambitious expansion programme since London was awarded the Games in 2005.
This has included a move to central London offices, the recruitment of a new executive team and the hiring of Sir Clive Woodward in a performance role.
It has been clear for some time, however, that the BOA was struggling to cover its increased costs. Last year Telegraph Sport disclosed that the BOA had had to use the proceeds from the sale of its former headquarters to balance an operating loss of £1.6 million.
Salaries accounted for £4.2 million, more than half the total revenue of £8.3 million. In the previous two years it recorded an operating loss of £1.5 million and £1.3 million respectively.
The BOA relies for the bulk of its income on a joint-marketing program agreement (JMPA) with the London 2012 organising committee (Locog), worth around £30 million over the seven years from winning the bid in 2005 to the Games.
Last night the BOA said that the deal was worth just £19 million in cash - the balance is value-in-kind services such as air fares and equipment - and compared it unfavourably with the £71 million the Canadian Olympic Committee received from its Vancouver Winter Games deal.
The income from Locog has been fixed for several years, however, raising questions about why the BOA now finds itself over-stretched entering the most crucial period in its history.
Woodward’s role, which has changed several times and accounted for £1.7 million of direct sponsorship revenue in 2009, has proved the most controversial area, attracting criticism that the BOA was straying from its core functions.
He was initially hired to work with athletes but that clashed with the role already carried out by UK Sport so his focus switched to coaches. Last year the BOA ended that programme, leaving Woodward to focus on high-performance support for Team GB members at the Games, the area now threatened by the funding gap.
In a statement issued last night the BOA said: “We always knew that 2011 and 2012 would be exceptionally challenging due to the financial constraints which we inherited with regards to the Joint Marketing Programme Agreement with the London 2012 Organising Committee.
“Despite this the BOA has lived within its means, has strengthened the organisation to be world class and continues to work with our supporters and partners to select and support a full team in London 2012. We are confident we will succeed.”
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