5 EASY STEPS TO REPAIR A HOLE
You don't have to resort to covering a hole with an inappropriate badge. Find yourself 30 minutes of spare time, new sharp scalpel blade, Sellotape and some fabric glue. Whatever glue you use must flow well and obviously be washable. Bostic All Purpose Clear Adhesive or Evo-Stik Multi Purpose Clear Adhesive are suitable.
STEP 1.
Without stretching the fabric, stick some Sellotape at the back of the hole to make the area stiff.
STEP 2.
Using a very sharp scalpel carefully cut out the hole to make a bigger hole! Seriously you need to cut the uneven hole to form a rectangle. If you have a sharp hole punch for making eyelet holes etc. you can use that. This photo shows an uneven burn hole.
STEP 3.
Remove the Sellotape that was used to stiffen the area. You can use a lamp to warm the Sellotape if it is stuck a little to well against the fabric.
STEP 4.
Cut an exact piece of fabric from some spare, don't just cut it from the inside of a pocket, that's a bit stupid. A spare few millimeters were found on the inside of this track suit at the bottom of the zip. If you used a hole punch at step 2, use the punch again on the spare fabric and the bit it cuts out use to fill the hole.
STEP 5.
Squirt your glue over the repair and ensure that the glue soaks into the fabric without penetrating to the front surface.

If you need more information. A good place to ask is in the rec.crafts.textiles.misc newsgroup.