Shaw Capital Management World Financial News:There’s no money left! Minister Hunt issues warning to BOA over financial disagreement

As it stands, the BOA would be entitled to a cut of any surplus after 2012, but with Paralympic losses expected to cancel out any Olympic gains, this would likely be a negligible figure.

Instead, the BOA want to take a share before the Paralympic results are taken into account and, despite the IOC ruling against them, are taking their case to the Court of Arbitration for Sport.

Should they be successful, it would require either LOCOG somehow to generate more money, or for the cash to be shifted from the wider sport budget, affecting other projects.

Hunt, the Secretary of State for Culture, Olympics, Media and Sport, is also worried the conflict could cause the bodies to take their eyes off the ball in other areas.

The clock is ticking: The London Olympics kick-off in just over a year

He told BBC Radio 5 Live’s Sportsweek: ‘It’s an extraordinary thing just over a year before the games that we’re getting into this sort of dispute which, frankly, isn’t going to benefit anyone. It’s just going to line the pockets of lawyers.

‘The BOA is fantastically important to the success of 2012. ‘They have got to look after 550 athletes, it’s a massive logistical operation to run that village…and they’ve got to run the holding camp. ‘Everyone in that organisation needs to be focused on that logistical challenge.

‘The second thing is I can’t really see how anyone’s going to be a winner from this because there is no more money. ‘Sport got a very good settlement in the comprehensive spending review.