The WMCA, which brings together local authorities to make the region a better place to live, met on Friday 12 January. A crucial item on the agenda was the upcoming European Athletics Championships in 2026, amid numerous rumours that the British city's hosting of the event could be in jeopardy. 

The combined authority makes decisions for its regions through government delegation, ensuring that they are made by those who best understand their region, its opportunities and its challenges. Established in 2016, the WMCA comprises 18 local councils and 1 Local Enterprise Partnership (LEP), working together for the benefit of everyone who lives and works in the region, including businesses, councils, and education leaders. 

The WMCA met to consider, amongst other things, the organisation and funding of the 2026 European Athletics Championships in Birmingham, given the resource constraints and financial issues facing England's second-largest city. 

After deliberation, it was considered prudent to take all necessary steps to fulfil the contract despite the resource constraints. Previously, the Council and UK Athletics (UKA) had signed the Organising Agreement contract with European Athletics (EA) in November 2022, following which an application for funding from the Commonwealth Games Legacy Fund, administered by the WMCA, was approved for a total value of £13.7 million ($17.43 million) towards the estimated total delivery cost of £30 million ($38.16 million).

Within the current context and economic challenges, and recognising the importance of the event to the region, a decision was was taken to re-plan and refine the budget to ensure it could be delivered within the available resources. More recently, this decision has been influenced by the financial circumstances of the Council and the additional governance involved in approving new expenditure. 

As it is not possible for the BCC to deliver the previously planned level of expenditure for 2023/24, or to continue with the originally planned grassroots sports programme, the BCC is seeking to reschedule the timing and nature of expenditure before 31 March 2025. This involves reducing expenditure in 2023/24 from £4.5m to £4m, but increasing it for the corresponding period in 2024/25 from £5.2m to £9.7m. 

Appendix 1 of the Board's report explicitly states the need for debt restructuring: "Without debt restructuring, BCC will not be able to identify sufficient eligible expenditure to secure the originally planned £8.5 million from the Commonwealth Games Legacy Fund (with a likely shortfall of £4.5 million). This would result in a funding shortfall for the Championships of such magnitude that the quality of the event would be significantly compromised or a higher level of funding would be required, posing a fundamental risk to the continuation of the event".

The document also outlines the rationale for the reallocation of funds: "The BCC remains committed to the importance and need for major events such as the EAC to be more than an elite sporting event and to act as a catalyst for promoting participation and physical activity at grassroots level. Given the Council's financial difficulties, it will not be possible to secure the necessary funding from BCC resources to deliver the grassroots sports programme as planned through a 'resource swap'."

"The partners are actively seeking alternative ways to ensure the delivery of community led and community centred activities at grassroots level in partnership with the EAC. The partners in the UK joint venture proposal have knowledge and expertise in this area and the BCC is confident that they will support the partners in achieving this objective," it added.

The £10 million ($12.72 million) funding for the Alexander Stadium will be spread across a number of projects to ensure the stadium's continued legacy as an event destination and community facility. From permanent event lighting to a 3G pitch and the relocation of the public access gym, these renovations will be used to benefit the community and capitalise on societal changes in key areas. Improvements to Perry Park and the surrounding area are also planned.

In relation to this budget, the Board's report states: "BCC's Expense Control Board has approved the work on the Alexander Stadium and the principle of the resource swap, so we are confident that the resource swap can proceed and the funds required for the EAC can be released within the CWGLEF period. At the time of writing, BCC have agreed to release £670,000 from the capital budget, effectively reducing this expenditure to £9.33k and reducing the deficit from £2.2 million to £1.53 million."

The statement makes it clear that "WMCA's specific financial requirement remains the same, at £13.7 million, and there would be no request to WMCA to support cost pressures or overspends. The UKA-JV will take all financial risk and support the event, allowing the BCC to limit its financial contribution and minimise risk. It is expected that the UKA-JV will sign a new Organiser's Agreement with EA or that the existing tripartite agreement between the UKA, the BCC and European Athletics will be novated from the BCC to the UKA-JV. In either case, one or more funding agreements between the BCC and the UKA-JV are expected to facilitate the remaining funding commitments".

BCC will continue to support the event in terms by providing the stadium and associated venue management and facilitating statutory services such as permits, licenses, waste management, etc. The UKA JV will be responsible for traffic management planning in conjunction with Transport for West Midlands, with support from BCC as required. 

As part of the joint venture approach, a Local Organising Committee (LOC) will be established to provide the providing an opportunity for local and regional oversight and direction to ensure that the benefits of the EAC are retained in the region.

As well as confirming that the 2026 European Athletics Championships will go ahead as planned despite the reallocation of resources, the WMCA stresses that these changes will bring benefits to the community and the region as a whole, both in terms of economic gains and social impact. They will help to increase levels of activity and participation in sport in the community, have a positive impact on reported levels of mental wellbeing and act as a catalyst to address health inequalities.