Golden 2012 Olympic goal for UK firms

By Bill Wilson
Business reporter, BBC News

Athletes in London will need to be kept safe throughout the event

When the London 2012 Olympics rolls into the UK in five years' time it promises to be the biggest sporting show on earth.

Thousands of athletes, VIPs, coaches, and spectators will descend on the capital and other UK cities for the 17 day extravaganza, which gets under way on 27 July 2012.

It will then be followed by 12 days of the Paralympic games.

But, as the man charged with security during the Olympics and Paralympics warns, being under the world spotlight will not have escaped the attention of potential terrorists.

Andrew Amery, head of security for games organisers Locog, says the games are an event that provide a potential stage to a "lone individual or radical group" bent on committing an outrage.

"For us to ensure that everyone, everywhere, is safe is perhaps a challenge of Olympic proportions," he says.

'Working with industry'

However the size of the task provides a golden opportunity for private security firms to secure contracts either for stewarding, or for providing safety equipment such as CCTV, search, scanning and alarm machinery.

There will be a need for security at athlete headquarters, training stadiums, car parks, and for VIPs - it is not just about what happens on the track and field Michael Halligan, CES

The Olympic Delivery Authority (ODA) is responsible for security around the building of the stadiums and Olympic village, but that responsibility will pass to Locog for the event itself.

Mr Amery says that a partnership approach will include using games volunteers as an "eyes and ears" resource, private security firms, and police.

"We are working closely with industry, examining the appetite of industry to support the games," says Mr Amery.

He said Locog would look to start a procurement process in about 18 months' time, for the first security contracts.

Security at stadiums during the event is Locog's responsibility

Locog, he says, is working closely with Skills for Security, the Security Industry Authority, and the Learning and Skills Council, "to ensure we have a skilled and trained workforce for 2012".

Meanwhile other opportunities could arise for firms to get involved in ticketing, accreditation, transport, and command and control procedures, all of which were being examined by Locog for ways "to make these sectors more efficient".

And he said that if there was a strong enough interest from the private sector, a separate Locog sponsorship category may be created for the industry.

'Mammoth task'

One private firm keen to get involved is Controlled Event Solutions, which provides security personnel to Manchester United's Old Trafford stadium and Everton's Goodison stadium, among others.

Its training and development manager Michael Halligan says: "It is a mammoth task and a mammoth opportunity for security firms. Everyone in the industry is excited by the games coming to London.

We will be using 150,000 contractors, and things have to work flawlessly Paul Deighton, chief executive, Locog

"It is such a big event that there is not one company that would be able to handle it all. There is an opportunity for any company that wants to play a part.

"There are so many different sites, both in London and around the country.

"There will also be a need for security at athlete headquarters, training stadiums, car parks, and for VIPs - it is not just about what happens on the track and field.

"Security is probably going to be a six-year programme, the build-phase, the event stage, and the demolition or break-down phase afterwards."

He said that as well as providing security personnel, his firm would also be keen to look at any training opportunities that became available.

'Massive project'

Unlike the ODA, which has seen its original budget soar, the organising committee says its finances remain on track.

Chief executive Paul Deighton said: "Our budget was originally £2bn and it remains £2bn. We are a private firm and the money has to be raised privately away from government.

There will be opportunities for security scanner manufacturers

"The money will be raised through ticket sales, TV rights, and sponsorship money - both from the IOC's top partner programme, and our own sponsors."

Locog hopes in the next month to name another two top-tier sponsors to join existing partners Lloyds, EDF and Adidas.

There are eight top sponsor categories: clothing and homeware, sportswear, airline, automotive, banking, telecoms, utilities, and oil and gas.

'Advanced stage'

Companies will pay at least £40m and an average of £50m to be linked with the 2012 Games.

"We hope to have all tier one sponsors in place by the Beijing games opening in 2008," says Debbie Jevans, director of sport at Locog

It [Olympic partnership] is a huge investment and has to be part of our everyday language for the next five years Sally Hancock, Lloyds TSB

"We are happy to have three in place already, which is well in advance of the stage any other games were at."

The organising committee currently employs 200 people, and that figure will increase to 3,000 by the time the games get under way.

There will also be 70,000 volunteers working at the games, with 7,500 in "sport specific" tasks - of whom 3,000 will be medically trained.

Paul Deighton, chief executive of Locog, says: "We have got a massive project ahead of us - we have got to stage the equivalent of 26 simultaneous world championships.

"We have got to build an organisation over the coming years.

"We will be using 150,000 contractors, and things have to work flawlessly."

'Olympic opportunities"

Mr Deighton says that further sponsorship opportunities and categories will be unveiled over the coming year, while the second tier categories will also start to emerge soon.

"The second tier categories are not set in stone," he says.

Lloyds TSB has already applied its colours to the 2012 logo

"We will look at who wants to work for us, and see how things fit together and whether we need to create new specific categories.

"But it may well be that security is an area where we feel it is worthwhile creating a specific sponsorship niche."

Meanwhile, one company which is looking at gradually expanding on its Olympic association over the coming years is top-tier partner Lloyds TSB.

"Unless we embed our 2012 partnership in our every day activities it won't work," says Sally Hancock, director of the bank group's sponsorship and London 2012 partnership.

"My job is about immersing the Olympic opportunity into our business.

"It[Olympic partnership] is a huge investment and has to be part of our everyday language for the next five years."