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A severe shortfall in the amount of private sector money raised may lead UK Sport to cut funding for sports with  clear medal prospects, such as cycling.

SOUTH NORFOLK MP Richard Bacon has said that the Department for Culture, Media and Sport has over-estimated the amount of private sector funding available for almost every aspect of the 2012 Olympic Games, as a new report finds that the government must raise an additional £100 million from the private sector very quickly, or funding for sports may be cut. Mr Bacon said today: “If British athletes are to deliver a strong performance at the 2012 Olympics, then it is vital that funding is in place now”.

“However, unless the Department for Culture, Media and Sport can raise £100 million of private sector funding by next month, there is a risk that even our brightest sporting hopes may have their funding slashed”.

“The DCMS was told in 2006 that it needed fundraising expertise, but it only began talks with a fundraising partner in January 2008, only a few months before UK Sport needed the money. It is becoming increasingly clear that almost every aspect of the budget for the 2012 Olympics has over-estimated how much private sector funding is available. There is now a real danger that our athletes may miss out on medals”.

Mr Bacon was speaking as the National Audit Office published its report on preparing for sporting success at the 2012 Olympic and Paralympic Games. The Department for Culture, Media and Sport (DCMS) is seeking to raise £100 million, 17 per cent of its direct funding for sports, from the private sector.

In 2006, a Commons public accounts committee report concluded that it would be challenging to raise £100 million from the private sector and recommended that the DMCS draw on specialist fundraising expertise. The Department did not begin contract negotiations with sports marketing agency Fast Track until January 2008, as it wanted to secure first-tier sponsors first. UK Sport’s funding strategy for 2012 is based on starting to receive this additional £100 million funding from April 2008.

The report finds that there is a risk that, unless the DCMS is successful in raising this money very rapidly, the funding may not be delivered or may become available too late in the Olympic cycle to make a significant difference to the Great Britain teams’ medal chances in 2012. UK Sport has identified a range of options for reducing its funding should a shortfall materialise, all of which would involve cutting funding from those sports which have the lowest medal prospects in 2012. Depending on the severity of any shortfall, UK Sport may also need to cut funding for sports with clear medal prospects. 

20 March 2008
 

See also:
NAO REPORT: Preparing for Sporting Success in 2012
PARLIAMENT: Olympics budget worthy of ‘Del Boy’ says MP
PARLIAMENT: Olympic Civil Servants should stay put
PARLIAMENT: Chancellor 'dragging his heels' over Olympics - MP