Olympic organisers under budget

The 2012 Olympic organising body came in £1.4m under budget, MPs were told
yesterday during a meeting of the culture, media and sports select committee.

The body, chaired by Lord Coe, revealed that £1.4m of the £29.1m budget would
be returned to stakeholders.

Deputy chairman Keith Mills said that the Games would generate £100m in
profits. The profits would come from an estimated £1.5bn in revenues according
to 2004 prices, equating to £2bn in 2012.

About 60% of these revenues would be distributed to British Sport, 20% to the
British Olympic Association and 20% to the International Olympic Committee.

Mills also told the committee that a chief executive for LOCOG, the
privately-funded body in charge of delivering the 2012 Games, should be named by
the end of 2005, and in place by spring. Other executive roles would then be

Neil Wood, a partner at Deloitte, is currently serving as LOCOG’s interim
finance director.

The second body managing the Games, Olympic Delivery Authority, will be
formally recognised through parliament next year. But David Leather, formerly
finance chief of the Manchester Commonwealth Games, is serving as interim CFO of
the interim Olympic Delivery Authority until that time.

The Ernst & Young partner will be responsible for establishing the
finance team, systems, budgets and forecasts.

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