Olympics 2012

The 2012 Olympics have a serious problem with the global financial crisis.

Companies can postpone expensive projects during a credit crunch but London Games officials have a fixed deadline - July 2012. They have to carry on building the venues and trying to sign sponsorship deals despite the problems and it's going to get much tougher.

So, in these days of belt-tightening, maybe it's time for some home truths about some of the rumours flying around about the Olympic Park.

Firstly, there is West Ham's suggestion that it might take over the Olympic Stadium after the Games. The club is going to need a lot of cash to make this happen. And there is little confidence among the Olympic chiefs I talk to that the Premiership club has anywhere near enough.

I go to the Olympic Park every week and the stadium is taking shape rapidly. The reality is that there is no time to re-design it. So, if West Ham wanted to move in, they would have to knock down a lot of it and start again. We could be talking £500 million for a re-build, the cost of the main stadium.

So people can talk as much as they like about a Premiership club taking over the stadium, but it is extremely unlikely that it is going to happen unless another billionaire steps in and agrees to pay for the redesign and build an athletics arena next door.

The stadium's legacy remains a major issue. I understand Saracens rugby club has had key meetings with London 2012 but no decision has been made yet. Leyton Orient blow hot and cold about doing the same but it is not going to be easy to find a permanent tenant ready to pay a decent price.

Secondly, Olympic officials are going to have to admit that all of the £2.7 billion contingency money in the project is going to be used up.

The Olympic Village needs at least an extra £250 million from public funds because the planned private cash is not available. Other parts of the Park will be affected too and security costs are rising all the time.

The reality is that the £9.3 billion budget is going to come under intense pressure in the next four years.

Thirdly, key funding for 2012 - such as the Cultural Olympiad and the funding of our athletes - is also going to be affected by the crisis.

Britain's teams are supposed to be getting £100 million from the private sector to prepare them for the Olympics and Paralympics. This money is now going to have to come from the Lottery or the Government - or cuts will have to be made to the teams. No government is likely to cut funding to Team GB after their spectacular success in Beijing.

There is also concern that key parts of the Cultural Olympiad may struggle for funding - from both the Government and the private sector - as times get tighter.

It is going to be harder to persuade sponsors to throw cash at cultural projects at a time when they may be making staff redundant.

All of these financial problems could be gone by the time the Games open in July 2012 and we may live in happier times.

The danger is that that the type of event London puts on in four years may be a reminder of the current crisis if officials decide to cut too many corners.