BOA Stay in the Black Despite Rise in Average Salaries

June 17, 2011

Despite admitting that it was struggling to find enough money to fund Team GB at the London 2012 Olympics earleir in the year, The British Olympic Association (BOA) managed to stay in the black last year, in spite of significant increases in both its cost of sales and administrative expenses.

The body managed to make a pre-tax profit for the year ended December 31, 2010 of exactly US$379,664, less than half the 2009 figure of just over $885,287.

The significant fact, however, was that the most recent profit was achieved without important exceptional items and it can therefore be said that the BOA succeeded in living within its means in 2010, in spite of the cost of sending a team to the 2010 Vancouver Winter Olympics.

In 2009, the accounts were dominated by more than $2.6m of exceptional income after the BOA booked a $3.4m profit on the disposal of property in Wandsworth, South-West London, as a result of moving its head office to Charlotte Street in October 2009.

Revenue in 2010 rose substantially from $13.37m to $18.62, while cost of sales climbed from $6.5m in 2009 to $7.36m and administrative expenses from $8.69m to $10.95m.

Meanwhile, media reports have suggested that the average salary of BOA staff has risen by more than 20% in the last year, despite claiming in March that the total cost of its responsibilities is thought to be more than £5m (US$8.1m), a figure that the BOA were, at the time, well short of.

However, the latest figures suggest that the average pay of a member of staff at the BOA has risen by more than £13,000 ($21,000) in the last 12 months and the average salary at the organisation is now more than £75,000 ($121,270). The number of staff employed fell during 2010, from 57 to 52, yet the wage bill rose by around £400,000 ($646.758). 

A statement from the BOA said: “Those 52 people were instrumental in helping the organisation deliver a year-end profit of £236,000 and increase its reserves to £2.2m for 2010. This is the second consecutive year in which the BOA has produced a profit and expanded its reserves.

“The unprecedented opportunities and challenges associated with preparing to support Team GB in a home games environment require the BOA to attract the best-possible talent. Clearly, having delivered a year-end profit for 2010, the organisation is living within its means.”