I received two very informative emails in response to the blog Calgary 2026 Olympics: To Bid or Not To Bid?” from two, very respected and knowledge able Calgarians.
The first was from Richard Parker, former Head of the City of Calgary’s Planning Department from 1988 to 2003. He wrote:
“I enjoyed your article on the Olympic Bid but I think you missed two very important points.
We won the 1988 Games in September 1981. The boom was still going strong although signs of trouble were beginning to appear. As I used to say we won the bid in a construction boom but built it in a bust, hence coming in under budget on a number of construction projects. (Everyday Tourist’s Note: Let’s hope our current bust doesn’t last until 2026.)
Also, the 1988 Olympics were the last time the local Organizing Committee got the TV revenues. I may not have the figures correct but the order of magnitude is right - we budgeted to get around $200 million and got that from outside the USA and got over $350 million for the US rights.
Our timing was perfect; we put out the bid just after Los Angeles, often referred to as the first true TV Olympics.”
Parker also cc’d his email to me to Bob Holmes who was on the Board, the Executive Committee, and the Finance Committee of the Calgary Olympic Organizing Committee (OCO’88).
Holmes confirmed the US TV rights were sold for $309M in 1983, far and away the largest ever for a winter games. And shared additional insights:
“The US Men’s Olympic Hockey team won gold in Lake Placid in 1980. It was referred to as the “Miracle on Ice.” This heightened the interest in the US TV rights for the Calgary games, as did the fact Calgary was in a “good time zone” for US TV.
The next Winter Olympics after Lake Placid were in Sarajevo, located in a much less desirable time zone for live broadcast back to North America, thus making the 1988 Calgary Olympics the first real opportunity for US television networks to capitalize on the “Miracle on Ice.”
In fact, the bidding for the US TV rights to the Calgary games was deliberately – and strategically - conducted in 1983 before Sarajevo. The timing of the bidding, the memory of Lake Placid, Calgary’s time zone, as well as the US hockey games being strategically placed on the schedule for the US audience, all led to very high bids by all three US networks for Calgary’s 1988 Winter Olympics.
Los Angeles in 1984 set a new standard for corporate sponsorships, and the revenue derived from this source, as well as TV rights. Their sponsorship program was at an international as well as national level, attracting worldwide corporations like Coca Cola and Visa to pay millions for the rights. Calgary benefitted greatly from this. By contrast, Lake Placid in 1980 had the official potato chip sponsor, and dozens of other small categories, generating small revenues.
After the financial success of Los Angeles and Calgary, the International Olympic Committee (IOC) changed the cost sharing formula between the Host City/Organizing Committee’s share and IOC. The IOC also took over both the TV rights and worldwide sponsorship program and gave a share of these revenues to the host city/organizing committee.
More recently, there has been a shortage of bidding cities - many have considered but backed out because of cost and uncertainty of revenues. Sochi is mentioned as an example of this although I think the costs in Sochi were driven as much by the Russian government as the IOC. The IOC is apparently concerned about the lack of interest and has recently said it was going to streamline the bidding process and also take steps to reduce the costs of staging the games.
It is absolutely critical that before any bid takes place, Calgary understands as much as possible how the IOC intends to streamline the bidding process and staging of the games as well as what will be the total revenue projections and how they will be shared.
As well, before any bidding decision is made, Calgary must determine the cost/benefits of the infrastructure legacy opportunities. How much would Calgary benefit from having a new, state-of-the-art multi-purpose arena, a new convention centre (media centre for Olympics) and renovated or replaced McMahon Stadium for opening ceremonies paid for by all three levels of government and corporate sponsorships that we would never be able to access without the Olympics? As well, maybe an LRT link to the Airport and/or to Canmore and Banff could be added bonuses.
Nor should we underestimate the value of the publicity and civic pride benefits that comes with an international event like the Olympics.
“Indeed, the world has changed since 1988, but it is too soon to dismiss the idea of the hosting the 2026 Winter Olympics. I commend the City for taking the time to do their due diligence before deciding ‘Yes or No’ to what could be a great opportunity to kick-start the next phase in Calgary’s evolution as a city,” says Holmes.