The Olympic Bailout

Such are the lousy state of finances for the London 2012 Olympics, that the organisers have had to go "cap in hand" to the European Investment Bank for a £225M loan for the development of athletes' village project in East London.

The loan is required to plug the shortfall in private sector funding that has all but dried up because of the recession.

The interest charged on the loan will be higher than interest charged by the UK Treasury, thus adding further costs to the already out of control Olympics budget which currently stands at £12BN (including £2BN running costs).

Olympic Medals won during the Beijing 2008 Olympics

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Appalling Contracts

Some well known British athletes have been told not to sign the new Team 2012 contract, because the drafting of the contract has been deemed by the athletes' lawyers to be "appalling".

The draft contracts propose that athletes promote corporate "partners", selected from a list of 2012 sponsors that includes Lloyds Banking Group, Adidas, EDF Energy and Samsung.

Richard Butcher, a solicitor at Payne Hicks Beach, said that the wording is unclear and appears to limit athletes' ability to arrange their own sponsorship deals.

One agent is quoted in the Guardian:

"Any athlete who sat down and read this properly would have an issue with it.

They're signing their rights away to be used by pretty much whoever."

Olympic Medals won during the Beijing 2008 Olympics

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Security

Will Geddes, chief executive of International Corporate Protection (ICP), talking about the London 2012 Olympics is quoted by Reuters.

"At this particular time and moment we are probably the highest risk Olympic Games to be held."

Hardly encouraging for the games!

Olympic Medals won during the Beijing 2008 Olympics

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The Gardening Olympics

The government, keen to try to justify the cost of the Olympics circus coming to London in 2012, has decreed that gardening will count in the Government's target to get two million people more active in the run-up to the London 2012 Olympics.

LOL!

Olympic Medals won during the Beijing 2008 Olympics

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Golly!

The organisers of the London 2102 Olympics are reportedly taking action against Apollo Badge and Pin which are marketing "Olympic Gollies", these are lapel badges in the form of a "Golly" with an "Olympic" theme.

The London Olympics legal action would probably use copyright laws against the sale of the Gollies as unlicensed merchandise.

Olympic Medals won during the Beijing 2008 Olympics

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Marketing Failure?

Conservative shadow tourism minister Tobias Elwood and Liberal Democrat shadow culture, media and sport secretary Don Foster have taken a pot shot at the government over the marketing of the London Olympics 2012 abroad wrt Britain as a tourist destination.

Elwood claimed, at the Best of Britain & Ireland Travel Trade Forum last week, that the Olympics are a "once in a generation" opportunity to market Britain overseas, but "not one extra penny has been put aside" for marketing.

Foster claimed:

"The question is whether or not we grab the incredible opportunity 2012 offers, but there has been no commitment by the government to provide additional resources."

Maybe so, but given the budgetary disaster and the funding shortfalls caused by the recession, is it wise to draw attention to an event that may in fact fall far short of the media hype?

Olympic Medals won during the Beijing 2008 Olympics

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Team GB Deficit

Aside form the £12BN or so costs of holding the 2012 London Olympics, there is the small matter of actually funding the British athletes.

Team GB currently faces a £50M shortfall in its budget. As a result of the shortfall some events may take place without British competitors.

The British Olympic Association has joined with other 2012 stakeholders to raise extra cash through a new "Team 2012" sponsorship programme, and tap the public for more funds (outwith the tax that they are already paying).

In theory, if the public pay up, they might be able to raise around £10M - £20M.

Olympic Medals won during the Beijing 2008 Olympics

Don't forget to visit www.theolympicswarehouse.com
www.olympicsdiary.com brought to you by www.kenfrost.com "The Living Brand"