Social enterprise wins major Olympic legacy deal

Social enterprise GLL has made waves by beating formidable private sector bidders to operate both the Olympics Aquatics Centre and Multi-use Arena for a decade when this year’s London Olympics has finished.

The announcement was made by the Olympic Park Legacy Company this week.

It said employment, training and sporting opportunities for Londoners were at the heart of the contracts it had awarded, along with ensuring that the venues are both affordable and accessible, and fit into the wider offer of the Queen Elizabeth Olympic Park.

GLL was the UK’s first leisure trust and it currently oversees the management of over 100 public leisure centres. It’s successful bid saw it fight off competition from private sector providers Serco and Parkwood Leisure.

Balfour Beatty WorkPlace will run the ArcelorMittal Orbit – the massive observation tower designed by Anish Kapoor – and manage the maintenance of the Queen Elizabeth Olympic Park.

The contracts include:

• 254 full time jobs
• 86 apprenticeship places every year
• A commitment that on average, 75% of jobs from the two contracts will go to local people in the Host Boroughs
• A strong focus on small and medium sized enterprises benefitting from supply chain opportunities
• The price of swimming at the Aquatics Centre or hiring a court at the Arena will be the same as the average local pool or sports centre.

By combining two venues in one contract, the Legacy Company has also ensured that the Aquatics Centre will not require any additional public subsidy as the Arena will cross subsidise it.

Baroness Margaret Ford, Chair of the Olympic Park Legacy Company, said: "GLL and Balfour Beatty WorkPlace will play a key part in the creating a Queen Elizabeth Olympic Park that is a thriving visitor destination with world class sporting venues that are both affordable and accessible to the public.

"The combination of Balfour Beatty WorkPlace's commitment to jobs and apprenticeships and GLL's innovative proposals for sports programming will create a host of economic and sporting opportunities.”

Richard Lewis, Chair of Sport England, which invested £35m of Lottery funding in the Aquatics Centre, said: "The appointment of an excellent operator in GLL is another key step in securing a sustainable future for these venues beyond the Games.

"Sport England looks forward to working with OPLC and GLL to help develop their plans for community use, ensuring these world-class facilities provide a lasting legacy of increased participation at grassroots level as well as hosting major events for many years to come."

Mark Sesnan, Managing Director of London-based GLL said: "We are delighted to have been awarded the contract to manage the 2012 Aquatic Centre and Multi-Use Arena post 2012. Our charitable social enterprise status, community values and successful track record, demonstrate that GLL is committed to opportunity for all, ensuring the Games offer a long-lasting sporting legacy all Londoners can enjoy. We look forward to working in partnership with the OPLC to deliver world class legacy facilities."

With an anticipated 800,000 visitors a year, the Aquatics Centre will be a thriving community asset open to all where individuals, families, people with disabilities, school children and the UK's best sporting talent can all swim and train under the same roof.

Peter Holbrook, CEO of Social Enterprise UK, said: "This is truly fantastic news for Londoners. Social enterprises have more to offer our Olympic Host Boroughs than PLCs. Rather than private companies making profits and giving them to their shareholders, which means the money invested in poorer communities ends up elsewhere, GLL will reinvest the profits to provide training, jobs and top quality leisure facilities at affordable prices. This is what good business looks like.

"When people spend their money to use these facilities they’ll be making a positive difference exactly where the money is spent and society will profit."

The Legacy Company and GLL are also working with a host of National Governing Bodies for sport British Swimming, Sport England, England Netball, British Wheelchair Basketball Association and England Basketball to ensure that the programming meets the requirements for athlete training.

The Multi-Use Arena will be a multi-purpose sport and entertainment venue where the public can play a wide range of sports including basketball, wheelchair basketball, handball, volleyball, netball, judo, boxing, badminton and gymnastics. As the third largest arena in London, it can also host concerts, shows, exhibitions and conferences, along with major sporting events. It is anticipated it will attract around 400,000 visitors a year.