London 2012 budget rows refuse to go away with rumours now surfacing that the
official cost of building the Olympic stadium has been underestimated.
According to predictions from construction experts, the true cost of building
the new arena is more likely to be in the region of £500m as opposed to the
£280m laid out in the original bid document.
Culture Secretary Tessa Jowell has told MPs that the cost of building the 2012
Olympic Park has risen by £900m to £3.3bn in a revised budget report.
The 40% rise in the construction costs was widely expected with Jowell
placing the blame on the rising cost of steel and revising transport costs to
take into account inflation. The revised figures also include a £400m bill to
pay delivery partner CLM to make sure the Games come in on budget.
West Ham United has finally reached an agreement with the consortium led by
Icelandic businessman Eggert Magnusson regarding a £85m takeover of the FA
Premier League club.
Magnusson's consortium has secured agreements to buy 83% of shares and the
Hammers' board have recommended the offer to remaining shareholders.
Magnusson will replace Terry Brown as West Ham chairman, although Brown will
remain at Upton Park as a director.
Rights selling agency Sportfive, which holds the TV rights contract for UEFA’s
2008 European Championships amongst a raft of other properties, has been sold to
a French media company in a €865m deal.
Lagardère SCA reached an agreement to purchase Sportfive from its present
shareholders at the weekend although the sale is subject to the approval of the
Sportfive was put up for sale earlier this year by its owners, RTL Group,
private equity group Advent International and Goldman Sachs Group.
The LTA has announced that last year’s Wimbledon Championships generated £25.5m
in revenue to be redistributed into British tennis.
In revealing the funding derived for the sport from Wimbledon, the LTA also
stated that it would be pulling together a team to instigate widespread
structural changes to the way tennis is governed in the UK.
Jersey-based firm The Belgravia Group has confirmed it is in discussions with
Newcastle United about a possible takeover bid.
Although no formal proposal has been put forward, spokesman for the group
revealed it was keen to reach an agreement to take over the FA Premier League
Current club chairman Freddy Shepherd owns 28% of the club, while former
chairman Sir John Hall has a 29% share and his son Douglas owns a 12% stake.
The Olympic Delivery Authority has confirmed that the cost of staging the London
2012 Games has increased from £3.4bn to £5bn, confirming industry concerns
outlined at the FT Sport Industry Summit earlier this month.
Sir Roy McNulty, head of the ODA, told the London Assembly that the
combination of increased security costs, an unexpected VAT bill and demands for
a contigency plan have all added to the overall cost of staging the Games.
The RFU’s annual financial results showed a 4.5% drop off in turnover to £83m –
a worrying decline attributed to the England team’s poor performance on the
pitch in the last 12 months.
According to the annual report, seven straight losses on the bounce have cost
the RFU £3.6m, mainly due to a decline in ticket sales, reduced merchandise
sales, a lower share of Six Nations revenues and the costs of restructuring the
Elite Rugby Department.
A row has erupted over the monetary value of playing in the FA Cup after a non-league side was left £10,000 in the red after being forced to switch its first-round game to a larger stadium.
Havant and Waterlooville’s home tie at the club’s West Leigh Park stadium against Millwall was moved to Portsmouth’s Fratton Park ground due to concerns over overcrowding.
US sports marketing giant Wasserman Media Group has completed its long-mooted
takeover of the European arm of SFX Sports Group, the marketing agency that
represents a host of sports stars including footballers Michael Owen and Steven
Wasserman’s acquisition of SFX Sports from Clear Channel gives the new parent
agency a significant foothold in the European market across a number of
different sports, most noticeably football and rugby.
Through the union, SFX Sports will become part of WMG Management. No price
has been disclosed for the transaction.
The Sport Industry Daily
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