Report Downplaying London Games' Economic Impact Ignored
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Jowell (r) Says City May Not Have Bid
For Games If Recession Was Foreseen |
U.K. government officials "ignored evidence from their own experts who found scant social or economic justification for bidding for the 2012 Olympics," as a 250-page strategy document "found little support for the claim that the Games would produce significant economic returns or more people playing sport," according to Ashling O'Connor of the LONDON TIMES. The document, titled "Game Plan," was signed off on in December '02 by former U.K. Prime Minister Tony Blair. Game Plan chief author John Clark: "We concluded that countries should host the Olympics only for reasons of national celebration because the economic rationale is weak." The document was researched for "nearly a year by ten experts" and was "intended as a framework for sports policy for the next decade -- in particular, whether Britain should bid for events such as the Olympics and the World Cup." But Game Plan was "quietly forgotten when it did not present a strong case for a bid." Cass Business School professor Stefan Szymanski: "This was a robust report that showed why we should not bid for the Olympics but it was an inconvenient truth. Almost the moment the ink was dry, there was a volte-face." But London Olympics Minister Tessa Jowell, who sponsored Game Plan, this month admitted that a bid would "probably not have been pursued if a recession had been foreseen." Game Plan "examined five types of benefits widely used to make the case for investing in large-scale events: urban regeneration; sporting legacy; celebration and culture; and wider economic uplift." The document concluded, "The quantifiable evidence to support each of the perceived benefits for mega-events is weak ... be clear that they appear to be more about celebration than economic return." The document has "emerged as Games chiefs meet today to [approve] funding cuts for Olympic sports such as basketball and hockey." The existence of the report also will "strengthen calls for an 'Austerity Games' in the image of 1948, when London was last host city, as the recession forces a squeeze on public spending in 2012-13" (LONDON TIMES, 12/2).
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Burnham Expected To Reveal
U.K. Athlete Funding Today |
BUDGET TALK: In London, Sarah Knapton notes the cost for the London Games has tripled from US$3.6B to US$14B and US$824.6M has been "diverted from grassroots sports to the Olympics." Arts organizations also "claim they are missing out on funding" (London TELEGRAPH, 11/2). Also in London, Paul Kelso reports the U.K. government last night was "considering granting a [US$30-45M] bail-out for Britan's Olympic athletes to close a funding shortfall." U.K. Secretary of State for Culture, Media & Sport Andy Burnham is "expected to inform UK Sport on Tuesday how much Government funding they will receive ahead of 2012, but on Monday night it was still unclear how much of a [US$445.2M] package promised" by U.K. Prime Minister Gordon Brown when he was Chancellor of the Exchequer will be delivered. Burnham's department and Treasury officials conducted talks into last night "over how to close a [US$117.2M] gap in funding caused by the Government's failure to attract private sector investment for athlete funding." An increase in projected lottery sales has seen the government revise the figure down to US$117.2M, but "despite the funding difficulties, UK Sport have repeatedly been told to budget for the full" US$445.2M. Sources said that they were "hopeful the shortfall will have been reduced by at least [US$30M] by the end of the week." With the gap "unlikely to be smaller than [US$74.2M], however, UK Sport are likely to have to cut funding to at least 10 sports" (London TELEGRAPH, 12/2).
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