Sports Business Marketing: 2012 Olympic Games in London sponsorship budget quadruples
UK government officials have confirmed the budget to stage the 2012 Olympic Games in London has quadrupled from initial estimates.
Culture Secretary Tessa Jowell confirmed the cost of hosting the sporting extravaganza now stands at £9.35bn.
When London won the race to host the event the budget was estimated at £2.4bn.
The cost breakdown includes £5.3bn for construction work, £600m for increased security, an £840m tax bill, £390m for other costs including hosting the Paralympics, and a £2.7bn contingency fund.
The government has committed to paying £6bn – cash raised through London’s council tax and the National Lottery.
However, dipping in lottery funds has provoked a backlash from the Conservative opposition.
Shadow Olympics minister Hugh Robertson said: “If you add together all the separate parts, the budget for which the government is responsible has nearly trebled since the Olympic Bill left Parliament under a year ago.
“In raiding the lottery for a further £675m to make up the shortfall the government will penalise precisely the clubs and small organisations, up and down the country, that were supposed to benefit from the Olympics.”
Sports Business Marketing, London 2012 Olympic Games, sponsorship budget
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Filed under: Sports Marketing, Sponsorship, Sports Business on March 16th, 2007