The 'embarrassing' cash dispute that was threatening to overshadow the London 2012 Olympics has been resolved.
The British Olympic Association (BOA) have abandoned legal action against London 2012 organisers after being forced to accept defeat over the major issue of whether the cost of staging the Paralympics should be taken into account in calculating any surplus of the Games.
In return, as part of the settlement agreement signed by both parties, and the Games organising committee LOCOG will waive rights to royalties on two items of Team GB merchandise and will allow the BOA to buy extra Olympic Games tickets.
The dispute has called into question the handling of the situation by BOA chairman Colin Moynihan and chief executive Andy Hunt, who had been suspended from the London 2012 board after rejecting an IOC ruling and taking the case to the Court of Arbitration for Sport.
London 2012 chief executive Paul Deighton said: 'I am glad this issue has been put behind us and we can all get on with delivering Games next year that will make this country proud. I would like to thank Andy (Hunt) and his team for creating the right environment for us to reach this settlement.'
The settlement confirms all previous financial arrangements between the two organisations with the only new details relating to the waiving of royalties and the extra tickets, which will be used by the BOA as part of their Team 2012 appeal and for a number of former athletes who have competed at the Olympics.
London 2012 will also 'pro-actively support' the BOA's efforts to secure sponsors and other commercial partners for the 2013-2016 period.
A statement said the agreement has been welcomed by the IOC and 'also brings to an end the request for arbitration that had been filed by the BOA with the Court of Arbitration for Sport (CAS) to resolve a contractual dispute with LOCOG'.
Hunt added: 'We appreciate the spirit of partnership and cooperation that LOCOG brought to our discussions. With this matter now resolved, the BOA will be able to keep its attention focused entirely on our preparations to support Team GB at the Games.'
London 2012's board have agreed 'in principle' to lift the suspension against Moynihan and Hunt and will formally decide to do so before the next board meeting in May.
The BOA first suspended their legal action against London 2012 two weeks ago when fresh talks were opened.
It followed a period where they had come under intense 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.
The row centred on the money the BOA wanted from London 2012. They are due 20 per cent 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.
