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# Government to help fill London 2012 funding gap at expense of emerging
sports
## Olympic sports facing budget cuts ahead of the 2012 Olympics were
reprieved on Tuesday after eleventh-hour negotiations between the Treasury and
the Department for Culture, Media and Sport concluded with a £29 million
injection of Exchequer funds to the UK Sport budget.
![Andy Burnham - Government to help fill London 2012 funding gap at expense of
emerging sports][1]
Late reprieve: Culture secretary Andy Burnham called the 29 million injection
of Government funds into the 2012 Olympics 'a good outcome in the
circumstances' Photo: DAVID ROSE
By Paul Kelso 10:28PM GMT 02 Dec 2008
[Comments][2]
The provision of additional public money, first revealed by _The Daily
Telegraph_ on Monday, is intended to help fill a £100 million shortfall in
contributions from the private sector and means that all Olympic sports will
receive some funding in the build-up to the London Games.
Culture secretary Andy Burnham informed the UK Sport board of the funding
decision on Tuesday after negotiations with the Treasury concluded late on
Monday evening. Individual sports will be informed of their allocations on
Wednesday.
The new package means that all sports considered to have medal potential will
receive their full allocation, but emerging sports such as volleyball and
handball are likely to have to get by on skeleton funding.
The settlement means that British athletes will receive £40 million more than
during the Beijing Olympic cycle, an unprecedented investment. However, it
falls £50 million short of the £600 million promised in 2006 by the then
Chancellor, Gordon Brown, and the uncertainty caused by years of wrangling
over the issue has left many governing bodies deeply frustrated at the
Government's approach.
Uncertainty over funding stemmed from Brown's insistence in 2006 that £100
million of the £600 million, six-year package should come from the private
sector, a forecast that looked hopelessly optimistic almost as soon as it left
his mouth at the Dispatch Box.
## Related Articles
* [UK Sport dealt £50m funding blow][3]
02 Dec 2008
* [Government ponders £20m bail-out for athletes][4]
02 Dec 2008
* [Cuts could hit 2012 medal haul][5]
30 Nov 2008
In the 30 months since then, not a single penny has been raised and until
Tuesday the only dent in the £100 million shortfall had come courtesy of a
projected increase in Lottery sales worth £21 million. Tuesday's announcement
means the funding gap has been halved, but serious doubts remain as to whether
private sector contributions will close it any further.
Burnham insisted that the public funding package was a good result for Olympic
sport, and said he was confident the private sector would contribute. "This is
a good outcome in the circumstances and I think it is a realistic package, but
at the same time we are saying to British sport that we have to pull together
to bring in additional sources of funding," he told _The Daily Telegraph_.
"This means that no sports will be dropped from the Olympic programme and that
they can be maintained until the private funding arrives, which it will. One
of the things we want to see as a legacy of the London Games is the emergence
of a third funding stream for Olympic sport alongside Lottery funding and the
Exchequer. Public money has built a lot of value into sports like cycling and
rowing which now attract sponsors, and we want to repeat it across the other
sports that are not at that level."
Securing additional Exchequer funding in the current financial climate is a
notable achievement for Burnham, who inherited the thankless task of
delivering on a funding formula that has appeared deeply flawed from the
outset. The fact remains, however, that the Government has failed, so far, to
deliver on a clear commitment to Olympic sport. While the Government has long
insisted that the funding package was conditional on the private sector
contribution, UK Sport had been unequivocally told to budget for the full £600
million.
The expectation of £600 million was also backed up by official documents,
including a DCMS pamphlet called _Our Promise For 2012_, published in June
2007. On page seven, in bold and underlined, it lists "Investing £600 million
in high performance sport" as one of their plans. In July this year, sports
minister Gerry Sutcliffe told a press conference to unveil Beijing medal
targets that the Government was "committed to £600 million".
For £600 million read £550 million, and delivering on the promise to make up
the shortfall from the private sector will be a significant challenge. The
problem is that the DCMS have nothing of significant value to sell to
potential sponsors. The only Olympic property of any tangible worth to
sponsors is the five rings and the right to use the word "Olympic", and as the
IOC's regulations make explicit, the Government has no call on them.
According to the host city contract signed by London in 2005, all rights to
the Olympic rings, the flag, motto, emblem and anthem and expressions such as
Olympic, Olympiad, Olympic Games and their abbreviations, reside with the
London organising committee (Locog).
Given that Locog were and remain busy exploiting those rights to raise private
finance to pay for the running of the Games - they have so far banked £450
million - there was never any chance of the Government borrowing a ring or two
to help make up the shortfall.
This fundamental misreading of the sponsorship opportunities around the Games
has hobbled the private funding plan from the outset. With nothing "Olympic"
to sell, the DCMS have been forced to try to construct an alternative based
around athlete appearances. The resulting programme, 'Medal Hopes', will offer
sponsors locally and nationally the chance to be associated with 2012
hopefuls, but many are sceptical. "It hasn't got a hope in hell of pulling in
major funding," said a source.
Fast Track, the marketing agency run by former Olympic medallist Alan Pascoe,
were retained in July to market the scheme, but five months on the DCMS are
yet to sign off the details of the programme and it is yet to be tested in the
market.
Fast Track's ability to sell 'Medal Hopes' to a sceptical market may also be
undermined by the failure to secure additional athlete time for personal
appearances. Under the current UK Sport athlete contracts, athletes are
obliged to give up three days a year, ostensibly for Camelot to promote the
Lottery. UK Sport were seeking to increase that to four, but _The Daily
Telegraph_ understands that contracts will remain at three days.
On Tuesday the Government promised these difficulties would be overcome, and
that sport could plan with certainty for 2012. The onus is now on them to
deliver results.
**In numbers**
Total Olympic and Paralympic funding for 2008 and 2012 Olympic cycles: £619m
Beijing funding: £265m
Confirmed London funding: £304m
Full London funding: £354m
Shortfall: £50m
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