LOCOG publishes 2009 – 2010 Annual Report and Accounts

The operating budget for the London 2012 Games is circa £2 billion. This is financed by private-sector revenue programmes, including domestic and international sponsorship, licensing and merchandising, ticket sales, a portion of the worldwide Games television broadcast rights and IOC contributions.

The 12 months to 31 March 2010 were extremely successful in terms of generating revenue. During this period, LOCOG secured new domestic sponsorship deals with one Tier One partner, as well as three in Tier Two and eight in Tier Three. As at 31st March 2010, the Company had 27 domestic partners, and has since signed another seven domestic sponsors. As at 31st March 2010, LOCOG had raised £612 million, representing nearly 90 percent of the total domestic sponsorship budget target. In total £1.4 billion of the circa £2 billion operating budget had been secured at the end of the financial year. Ticket sales are LOCOG’s other major revenue stream. Tickets for the Olympic Games will go on sale in March 2011 and for the Paralympic Games later in the year.

Operating progress in the last twelve months includes;

-    The LOCOG £700 million procurement process, including tenders to purchase over a million pieces of sporting equipment, began in earnest;
-    Venue masterplan developed and model Venue exercise completed;
-    All 28 Olympic and Paralympic Sport Managers appointed;
-    Anti-doping contract signed with GlaxoSmithKline as official Laboratory Services Provider, and recruitment of anti-doping workforce underway;
-    Town planning process for venue approval by local authorities is well underway, including grant of planning permission to use Greenwich Park for equestrian events;
-    Pre-registration ticketing ‘sign-up’ programme launched – currently has 1.6 million registrants;
-    Olympic and Paralympic mascots launched;
-    Channel 4 appointed as UK Paralympic broadcaster;

LOCOG’s Chief Executive, Paul Deighton, was awarded performance related awards of £298,091 in this financial year. The awards were paid in respect of performance over the past two years, including a deferred amount in respect of performance in prior years. Paul Deighton is donating these awards, and all future awards in their entirety to charity. Full details of the remuneration of the Chief Executive and all members of the LOCOG Board of Directors, can be found in the annual report and accounts.

Sebastian Coe, Chairman of LOCOG, commented: 'As well as the once-in a lifetime opportunity for Britain’s athletes to perform on the world’s greatest stage in front of a home crowd, the Games offer an equally important opportunity for our country as it welcomes the world. We have made strong progress across a number of key areas in the last year, and our team has built excellent partnerships with our stakeholders and sponsors. As we pass the ‘two years to go’ milestone, all the building blocks are in place to enable everyone to plan their summer of 2012'


– Ends –

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Notes to editors:  

As it heads towards its £2bn budget for staging the Olympic and Paralympic Games, LOCOG has seven domestic Tier One Partners - adidas, BMW, BP, British Airways, BT, EDF and Lloyds TSB. There are seven domestic Tier Two Supporters – Adecco, ArcelorMittal, Cadbury, Cisco, Deloitte, Thomas Cook and UPS. There are now nineteen domestic Tier Three Suppliers and Providers – Airwave, Atkins, Boston Consulting Group, CBS Outdoor, Crystal CG, Eurostar, Freshfields Bruckhaus Deringer LLP, GSK, Gymnova, Holiday Inn, John Lewis, McCann Worldgroup, Mondo, Next, The Nielsen Company, Populous, Technogym, Ticketmaster and Trident.

There is one domestic Tier One Paralympic Games Partner, Sainsbury’s.

The Worldwide Olympic Partners signed up for London 2012 are Coca-Cola, Acer, Atos Origin, Dow Chemical Company, GE, McDonald’s, Omega, Panasonic, Procter and Gamble, Samsung and Visa.