A bitter dispute has placed the 2006 Montreal Gay Games in jeopardy. The event's international governing body, Federation of Gay Games and the Montreal Organising Committee are at odds over financial and attendance issues including the number of participants, says Mark Tewksbury, co-president of the Montreal Games. Local organisers are opposed to the federation's request to make financial decisions.

Tewksbury, a former Olympic swimmer who has won three medals, said that that the local organisers and the San Francisco-based federation can't agree on the size and scope of the event but however hope that they can work out the details next month despite currently rejecting arbitration.

In a press statement, he said that that the federation's demand to reduce participation from 24,000 athletes to 12,000 "would be a financial disaster" and to break even, Montreal needs at least 16,000 athletes who will pay C$200 each to compete in the Gay Games.

The Montreal committee has accused the federation of attempting a power play to take control of the funding. So far, the governments of Montreal, Quebec and Canada have pledged over C$5 million in grants and services to the games.

The Montreal committee has also sold television rights to the Canadian Broadcasting Corporation for live coverage of events - the first in the history of the Games.

"For Montreal 2006, it is unthinkable that financial decisions on the Games be made by anyone other than its Board of Directors, who are legally responsible for the outcome of the event. As well, the citizens of Montreal, Quebec and of Canada would never accept the use of their tax dollars being determined by a small group of people directing the FGG," he said.

Tewksbury hopes "that the FGG and Montréal 2006 can come to an agreement and that we will be able to announce this in Chicago", where the federation's annual meeting will begin on November 9. The group is also awaiting the federation's budget proposal based on 12,000 participants.

The Gay Games have been held every four years in a different city since the first was hosted by San Francisco in 1982. The Sydney 2002 games, which reportedly had 11,000 competitors had to be scaled back several times and almost were cancelled over money problems.