Olympics financial dispute settled

The bitter financial dispute that was threatening to overshadow the London 2012 Olympics has been resolved.

A settlement between the British Olympic Association and London 2012 organisers was agreed on Monday night.

The deal means the BOA will drop legal action against the organising committee - they had taken London 2012 to the Court of Arbitration for Sport over how any financial surplus from the Games would be calculated and divided.

It is understood the settlement does not involve any money changing hands between the two parties.

The BOA suspended their legal action against London 2012 two weeks ago when fresh talks were opened. It followed a period where they had come under pressure from the IOC and the Government over their stance.

Olympics minister Hugh Robertson called the dispute"an embarrassment" and IOC president Jacques Rogge was understood to be furious that the BOA went ahead with a court submission after the international body had ruled against them.

BOA chairman Colin Moynihan and chief executive Andy Hunt had both been suspended from London 2012 board meetings because of the action.

The row centred on the money the BOA wanted from London 2012. They are due 20% of any surplus after the Games but have claimed the cost of staging the Paralympics should not be taken into account when calculating that surplus.