UK Sport is in talks with UK Athletics (UKA) about the “possibility of providing some investment” for July’s Diamond League meeting in London.
The funding agency told BBC Sport that “no decision has been made yet, but conversations are ongoing”.
Track and field’s governing body approached the funding agency for help with its flagship event at London Stadium amid financial difficulties.
In December, UKA revealed it made an annual loss of £1.8m – 10 years after the sport took centre stage at the London 2012 Olympics.
Savings had fallen from £2.2m to just £430,000.
Although it hopes more than 40,000 tickets will be sold for the Diamond League meeting – the first to take place at London Stadium for four years – it has been reported that the event could cost UKA £500,000 because of the costs of prize money, travel and appearance fees. It has applied for the maximum available amount of £300,000 funding from UK Sport, as the Times and the Daily Mail have reported.
As well as the impact of Covid on ticket sales, UKA’s broadcast and commercial revenues have declined steeply in recent years, with the organisation losing its principle event sponsor Muller.
The cost of staging events has increased, and there has been significant turbulence in its senior leadership, with five chief executives and six chairs across five years. UKA’s current chief executive Jack Buckner has admitted a “very real challenge” with finances.
Despite Britain hosting the World Athletics Championships and the Commonwealth Games twice since London 2012, UKA recently decided to close its administrative offices at Birmingham’s Alexander Stadium in a bid to save rent, with staff asked to work from home amid fears of bankruptcy.
It has also considered a settlement agreement to exit its long-term contract to use London Stadium early. Such a deal could raise millions of pounds.
Last month the London Marathon confirmed it was in talks with the governing body in a bid to try to provide financial support.
UK Athletics declined to comment.
