The Culture Secretary Jeremy Hunt (pictured) warned that the dispute over how the profits from London 2012 will be distributed is damaging and will not benefit preparations for next year's Games.

Under an agreement signed in 2005 after London were awarded the Games, the BOA would be entitled to a cut of any profit after 2012, but only after the cost of the Paralympics has been taken away, potentially limiting the amount they will receive.

The BOA are now disputing the contact they signed six years ago and have taken London 2012 to the Court of Arbitration for Sport (CAS) to try to overturn it, even though the International Olympic Committee (IOC) have already ruled against them.

"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," Hunt told Radio 5 Live's Sportsweek.

"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..and they've got to run the holding camp.

"Everyone in that organisation needs to be focused on that logistical challenge."

Hunt's comments are particularly damaging to Moynihan, Britain's Sports Minister between 1987 and 1990, because they are both members of the Conservative Party and demonstrate that the BOA chairman is isolated domestically and internationally.

Hunt also warned that Moynihan's pursuit of the cash could be futile because if the Government have to meet the shortfall to help fund the Paralympics then it will affect how much money British sport receives after London 2012.

"I can't really see how anyone's going to be a winner from this because there is no more money," he said.

"Sport got a very good settlement in the Comprehensive Spending Review.

"No-one's going to be able to go back to the Treasury and ask for more money so even if the BOA win, the money's going to have to come out of another part of the sports budget or the Olympics budget.

"So I really hope everyone involved will settle this as quickly as possible and focus on what the country wants, which is 2012."

Moynihan and chief executive Andy Hunt are already under fire from several national governing bodies over the row and could face votes of no-confidence if they lose the case at the CAS.

"The BOA rightly operates at arm's length from the Government so who they have is up to them," said Hunt.

"But what I would say as the Culture Secretary is this is not the right argument for us to be having so close to having the Olympics in our country and we need to sort it out very quickly."

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