Yeah,

what part of the above stops them saying to LOCOG,

"We can't use these seats, you can sell them to normal punters"?


I do believe that's what actually happened but as the games progressed
the amount of unused seats reduced in number.

The allocation of such tickets was a contractual requirement of the
IOC but it was in no one's interest to have all those empty seats so,
once the problem was recognised, all involved quickly agreed to make
them available.