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An Arts Council spokesperson said;

'The issue for artists and arts organisations of whether to accept sponsorship, or be associated with an organisation receiving sponsorship, can be complex and we expect Boards to take it seriously. Our expectation is that where sponsorship is involved Boards will consider their position on a case by case basis, including how that sits alongside the organisation’s mission and values. 

'It should be remembered that the Arts Council is just one of the organisations that may provide funding. Organisations we fund are independent and have their own Boards. It is not for the Arts Council to second guess whether a sponsorship fit is appropriate.  

'Our funding does not support the Tricycle’s cinema.

'If the question arises as to whether the Arts Council should intervene in funded organisations we consider three things: whether the organisation is in breach of their funding agreement with the Arts Council, whether it is clear that they have broken the law, and whether they are in breach of the regulations monitored and enforced by the Charity Commission. In this case we are confident that the Tricycle is not in breach of these tests.

'We understand the Tricycle Board is currently working hard to find a resolution acceptable to both parties, and we hope others will allow time for this to happen.'

- See more at: http://www.artscouncil.org.uk/news/arts-council-news/arts-councils-response-recent-tricycle-theatre-and/#sthash.lNDWJ2DO.dpuf