The Olympics, LOCOG & Public Money...
Discussion
LOCOG is a company limited by guarantee set up to run the games. Being a company gives it status as a legal entity but it does not have shareholders in the conventional sense, it cannot distribute profits like most companies can so it exist purely to run the games and certainly not to allow anyone to make money out of it.
There are three main organisations:
Olympic Delivery Authority - the Government agency tasked with building all the venues. They get the bulk of the £9.3 billion public sector funding package although some of the venues and infrastructure were privately financed (the Olympic Village was I think). The other parts of the public sector funding package would be security, transport infrastructure, etc.
London Organising Committee for the Olympic Games - a private company limited by guarantee. The three members holding the controlling interest are the Secretary of State for Culture, Media and Sport, The Mayor of London, and the British Olympic Association. LOCOG are the ones responsible for running the Olympic Games and Paralympic Games themselves (i.e. the next 8 weeks or so. Their funding primarily comes from sponsorship, broadcasting rights and merchandising - they've raised about £2 billion so far. Any surplus left is to be distributed:
British Olympic Association 20%
International Olympic Committee 20%
"60 per cent to the Company to be used for the general benefit of sport in the UK, as may be determined
by the Company in consultation with the BOA."
Otherwise the Government guarantees any shortfall.
Afterwards, the venues get handed over to the London Legacy Development Corporation - another private company limited by guarantee. It's members are the Mayor of London (50%) and the Secretaries of State for Culture, Media and Sport and Communities and Local Government (50%). They sell off some of the venues (e.g. their the ones trying to sell the stadium to West Ham/Spurs) and convert the Olympic Park to legacy mode (set up a school for the housing in the Olympic village etc).
Olympic Delivery Authority - the Government agency tasked with building all the venues. They get the bulk of the £9.3 billion public sector funding package although some of the venues and infrastructure were privately financed (the Olympic Village was I think). The other parts of the public sector funding package would be security, transport infrastructure, etc.
London Organising Committee for the Olympic Games - a private company limited by guarantee. The three members holding the controlling interest are the Secretary of State for Culture, Media and Sport, The Mayor of London, and the British Olympic Association. LOCOG are the ones responsible for running the Olympic Games and Paralympic Games themselves (i.e. the next 8 weeks or so. Their funding primarily comes from sponsorship, broadcasting rights and merchandising - they've raised about £2 billion so far. Any surplus left is to be distributed:
British Olympic Association 20%
International Olympic Committee 20%
"60 per cent to the Company to be used for the general benefit of sport in the UK, as may be determined
by the Company in consultation with the BOA."
Otherwise the Government guarantees any shortfall.
Afterwards, the venues get handed over to the London Legacy Development Corporation - another private company limited by guarantee. It's members are the Mayor of London (50%) and the Secretaries of State for Culture, Media and Sport and Communities and Local Government (50%). They sell off some of the venues (e.g. their the ones trying to sell the stadium to West Ham/Spurs) and convert the Olympic Park to legacy mode (set up a school for the housing in the Olympic village etc).
anonymous said:
[redacted]
It has precious little to do with sport, and a whole lot to do with big business making BIG money - all underwritten at the taxpayers expense.The trough piggies will be very well looked after, as they have been for the last few years.
Perhaps the bid should have been for a cost neutral games. Whilst I love LOCOG's "We're exempt from FOI innit" statement - there might be a case as they are acting as a piblic authority in spending tax Mega-pounds to perform a function for the nation.
Best thing about L2012 (IMO) is that the f
king thing will be over soon. Shame it will still be being paid off.WhereamI said:
Yes, you are right, some people are being paid to do a job to deliver the Olympics. Shocking, I know, they should all be working for nothing, or minimum wage....
I never said that either. Just that people are making money when you said they would not be.Seems everybody is a bit touchy today. All for people being paid to do a job.
Pesty said:
WhereamI said:
Yes, you are right, some people are being paid to do a job to deliver the Olympics. Shocking, I know, they should all be working for nothing, or minimum wage....
I never said that either. Just that people are making money when you said they would not be.Seems everybody is a bit touchy today. All for people being paid to do a job.
Pesty said:
So ho much are they being paid to do this? minimum wage? are bonuses involved? I bet they are.
Some people will be very much making money out of this.
It read to me as though you think the whole thing should be run by people on minimum wage with no incentive to do a good job and get it right.Some people will be very much making money out of this.
Nobody is making money in the sense of investing money and getting a return. Obviously individuals are being paid to do a job but virtually nothing happens in this world unless you are prepared to do that.
Are you being deliberately obtuse?I never said they should be on minimum wage and you know it
Yes I typed 'are they on minimum wage' that is a question. I was not suggesting they should be or that they should not be paid.
I am making no point either way as to whether they should be paid or not paid. I was simply answering your point that nobody would make any money.
Because they will, they will be paid, I imagine quite generously especially the people at the top.
That is making money. Clearer now as to my response?
Yes I typed 'are they on minimum wage' that is a question. I was not suggesting they should be or that they should not be paid.
I am making no point either way as to whether they should be paid or not paid. I was simply answering your point that nobody would make any money.
Because they will, they will be paid, I imagine quite generously especially the people at the top.
That is making money. Clearer now as to my response?
rohrl said:
DSM2 said:
Yes, that's right, no one will make any financial gain from the Olympics. 
Not G4S anyway. They stand to lose £50 million by fking up security recruitment.king up he security. Their biggest miracle was being greedy and taking on he last request, then the buck would have stopped where it belongs.WhereamI said:
Yes, you are right, some people are being paid to do a job to deliver the Olympics. Shocking, I know, they should all be working for nothing, or minimum wage....
Point missed, methinks.Nothing to do with people being paid a wage. It's to do with people making money.
Got it yet?
Pesty and DSM2 said:
Stuff
Look at the OP's question. This thread is about who owns LOCOG.anonymous said:
[redacted]
Clearly the question is whether some investors/shareholders are going to take any profits hence my comment that nobody is making money out of this is clearly in the context of answering no to that question.Is that clear enough for you? Sure, lots of people are being paid to work on ar at the Olympics but that's not the same thing - not what the OP was asking about.
I think that the issue is partly that the games aren't the responsibility of one part of government, as I understand it the parties to LOCOG include central government, local government and the British Olympic Association. So creating a company that is essentially owned by all three makes sense from that perspective.
Personally I'm a little reassured that it's not directly an arm of Government, I have little faith in their ability to run anything.
Personally I'm a little reassured that it's not directly an arm of Government, I have little faith in their ability to run anything.
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