An agreement between the two parties was signed last night which means that the BOA will drop its threat to take London 2012 to the Court of Arbitration for Sport (CAS).

But Moynihan failed in his main goal which was to raise extra cash for the BOA, who are struggling financially, and the agreement is heavily weighted in favour of London 2012, who were supported by the International Olympic Committee (IOC) President Jacques Rogge and Britain's Sport and Olympics Minister Hugh Robertson.

The BOA are due 20 per cent of any surplus after the Games but are claiming the cost of staging the Paralympics should not be taken into account when calculating that surplus.

But Moynihan has now been forced to concede that any surplus will be distributed only after the costs of the Olympics and Paralympics have been settled and had to settle in the agreement that for the fact "confirmation that monies due to both the BOA and the British Paralympic Association (BPA) after the 2012 Games will continue to be prioritised and delivered should LOCOG's Final Audited Statutory Accounts show a sufficient surplus".

Details announced as part of the settlement include the confirmation that any surplus will be distributed on the basis of 60 per cent for the benefit of sport in the UK, 20 per cent to the IOC and 20 per cent to the BOA - which was already part of the contract.

Moynihan (pictured) and the BOA have had to largely settle for scraps, which will bring into question his decision to pursue so aggressively a case which has damaged the reputation of the Olympic Movement in Britain and almost certainly ruined his own ambitions of playing a leading role within the IOC in the future.

The agreement includes a pledge that London 2012 will support the BOA's efforts to find new sponsors to back them after next year's Olympics and that they support the BOA's plans for the marketing and sale of two items of Team GB merchandise through its official retail outlets and in conjunction with the Torch Relay.

London 2012 has offered to waive its royalty fee on these items so that the proceeds are designated exclusively for the BOA.

Other parts of the agreement include London 2012 allowing the BOA to purchase additional Olympic tickets that will be used as incentives in the Team 2012 appeal and for British Olympians who competed in previous Games.

London 2012 has also agreed to increase support for the BOA's operational planning prior to, during and immediately after the Olympics including access to venues contracted to London 2012, which chairman Sebastian Coe had already promised that he would do.

Finally, London 2012 has agreed to provide the BOA with the opportunity to build upon the successful Get Set Olympic Educational Programme, which is now in more than 16,500 schools across the UK, by working together to develop a detailed business plan to expand the impact and reach of the programme as part of the London 2012 legacy and to attract future commercial support.

"We appreciate the spirit of partnership and cooperation that LOCOG brought to our discussions," said Andy Hunt, the chief executive of the BOA.

"We are proud of our long standing partnership with LOCOG and the outstanding work being done by all of the sport stakeholders to deliver what will undoubtedly be a successful Games.

"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."

As part of the deal, Moynihan and Hunt are also set to be able to resume their positions on the London 2012 Board.

They had been suspended after launching legal action.

"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," said Paul Deighton, the chief executive of London 2012.

"I would like to thank Andy and his team for creating the right environment for us to reach this settlement."

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