More evidence that VANOC was unprepared when the economy collapsed after the Beijing Olympics is contained in John Furlong’s memoir, Patriot Hearts: Inside the Olympics that Changed a Country (Douglas and McIntyre).
The project was humming along, with sponsorship sales beyond expectations and construction on schedule. Then Wall Street icon Lehman Brothers filed for bankruptcy on September 15, 2008, after many months of headlines heralding the subprime mortgage mess.
“There was little evidence that the problems down south were seeping into our backyard. Payments from our corporate partners were being made on time. No one was calling to renegotiate,” Furlong wrote. “No one was even phoning to sound the alarm, put us on notice.”
What Furlong (and co-scribe Gary Mason) neglected to mention is that VANOC’s own 2007 business plan assumed there would be no recession of any size and that the Beijing Games came and went without a notable global sponsorship announcement.
“What-if scenarios were being sketched out almost daily in our executive meetings,” said the book. “Contingency funds were disappearing faster than beer in an Irish pub.”
Government partners were warned “we might need their help if we were going to survive this and still put on a spectacular Games.”
When that business plan was revealed, Furlong boldly proclaimed that no taxpayers’ funds were in the operating budget, but in the construction ledger. Only after the book was at the printer in December did VANOC finally fess up to receiving a $187.8 million bailout to balance the $1.884 billion budget. Or, as Furlong likes to call it, “targeted spending.”
What saved VANOC from sheer disaster was the jack rabbit start to sponsorship sales. Furlong reveals that Telus bid $135 million, well short of Bell’s successful $200 million proposal. Furlong recounted how he made a courtesy visit to Telus CEO Darren Entwistle to break the news. Telus had injected $5 million to the bid. Now it was no longer needed.
“Looking into Darren’s eyes at that moment was like looking into the burning fires of hell itself. “Is that it?’ he said. ‘Yes,’ we said. ‘OK,’ he said, ‘thanks for coming and best of luck.’”
RBC beat CIBC to continue its tradition as Canada’s Olympic bank. It was no contest for Hudson’s Bay Co. Roots was “empty for us. Zero cash, plus we were not just looking for a clothing retailer.”
After it was all over, Bay boss Jeff Sherman reported the company had its first profitable February.
VANOC didn’t get what it wanted from the beer category, a missed opportunity worth tens of millions of dollars. The International Olympic Committee’s deal with Anheuser-Busch lasted through 2008, which gave VANOC little time to test the market. Molson Coors paid “a few million dollars” to take over the category domestically in 2009.
Maybe that’s the real reason why Furlong never took a sip of his freshly poured pint of Canadian during a morning news conference in April 2008 at the Burrard Street brewery.
Furlong makes note of the three executives he fired. Little is said about original human resources vice-president Jeff Chan, who was replaced with Vancity’s Donna Wilson. It was “painful” to dispatch venue development vice-president Steve Matheson, who is described as “a wonderful guy.” Former highways deputy minister Dan Doyle took over Matheson’s harhat.
Chief financial officer Rex McLennan was gone because “the fit was not the best.” Comptroller John McLaughlin grew into the job.
The book reveals little of twice-married Furlong’s personal life during the Games. Despite the long hours and constant travel, he did have one.
Patriot Hearts is dedicated “to Catherine,” and it ends with Furlong’s acknowledgement for the “support, encouragement, compassion, love, deep loyalty and inspiration” of Catherine Bachand, his “dearest friend.”
Those are the only references in the book to Furlong’s executive assistant.
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