£2m loan to keep British Olympic Association on track

The British Olympic Association made a £1.5million loss last year and needed the London 2012 Organising Committee to bail it out, it emerged today.

The revelations that Locog paid £2million to keep the BOA afloat raises serious questions about the latter's ability to manage its finances.

It follows a deficit of £1.3million in the preceding year.

BOA chairman Lord Moynihan is to face questioning about the organisation at its annual general meeting today.

There are fears it could be bankrupt by the 2012 Olympics if it continues to haemorrhage money. The BOA's financial report for last year reveals £368,000 was spent on consultants.

Some leading figures in sport have also raised questions about the amount of money being spent by Sir Clive Woodward, a BOA employee since stepping down as the England rugby coach.

In the annual report Lord Moynihan describes last year as "challenging".

Problems were so severe that in December Locog was forced to make the £2million payment.

Some senior figures in British sport have expressed shock that the BOA was having to pay interest to Locog, with one describing it as "The Bank of Locog".

A spokeswoman for Locog refused to comment.

Chief executive Andy Hunt said BOA had seen "significant changes" and was now "better placed to cope with the tough financial environment".