LOCOG: Olympics to break even
The organising committee of the London 2012 Olympics expects to break even when it submits its final accounts - and that could spell bad news for the finances of the British Olympic Association.
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London 2012's (LOCOG) annual report published on Friday forecasts that both total revenue and expenditure will be £2.4billion.
The cash-strapped BOA had been hoping to benefit from a surplus which would give the organisation a £5million windfall but it now appears there is no guarantee of that happening.
The BOA has a substantial deficit and the current financial situation will serve to put further pressure on BOA chief executive Andy Hunt ahead of a board meeting on Wednesday.
London 2012's annual report states: "It is anticipated that the company's performance in raising funds and controlling expenditure will meet the objective of breaking even. LOCOG forecasts that both core lifetime revenue (AFR) and expenditure (AFC) will be £2.4billion."
The report shows that London 2012 chief executive Paul Deighton had a performance bonus doubled to £1.39million as a result of the "successful delivery of the Games".
Taking into account all bonuses and deferred incentives, Deighton ended his employment with a total of £1.98million to go with his basic £720,000 salary. He is now working for the Government as commercial secretary to the Treasury.
The LOCOG report shows the company made a loss of £53million up until the end of the year but has £78million revenue in the bank. That does not necessarily mean a surplus of £25million when the accounts are finalised in June because there are still significant outgoings which is why it is predicting a break-even figure.
Any surplus would be hugely welcome to London 2012 chairman Sebastian Coe however in his new role as chairman of the BOA.
Any surplus from the running for the Games will see £5million go to the BOA and £2.5million to ParalympicsGB before the Government has any claim on what remains.
London 2012 said that, as in the past, Deighton will be giving his bonus to charity. He has also waived his salary for the Treasury job.