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Morgan:News:2010 |Moguls| #786
BELL, VANOC TOOK FOUR MONTHS TO NEGOTIATE DOWNTOWN EASTSIDE DEAL; FURLONG GETS "A++" RATING; POOLE UNFAZED BY ABORIGINAL WORRIESHere are three moguls we ran into today:
- The decision by Bell Canada, as part of its sponsorship agreement with the Vancouver 2010 Winter Olympic Organizing Committee (VANOC), to put C$2 million into The Vancouver Agreement for its use in a plan to "revitalize" Vancouver's downtown east side, came about as the result of negotiations over the last four months. Stephen Wetmore, the Group President of National Markets for Bell Canada, says, "The downtown east side is the first community to benefit from Bell's partnership with VANOC. Supporting the downtown east side makes sense for Bell. Our community-investment strategy is founded on being connected to communities. I think it's safe to say that most businesses today understand the need to support communities. One of the best ways we can do that is to support local economic development. We're hoping other companies will join us in supporting the downtown east side. It takes money to get the ball rolling, and it takes collaboration to sustain it." Some reaction to the decision: From VANOC Board Chair Jack Poole: "We signed the contract with the International Olympic Committee, and it's up to us to live up to it." Poole says the spending of the funds will be up to the Board of The Vancouver Agreement, "We'll have a role in that." From the federal government's minister in charge of Sport and Ottawa's interests in the 2010 Winter Games, Stephen Owen: "It helps VANOC meet the social-inclusion objectives of the bid by the Organizing Committee, and to start showing, in real terms and in real dollars and in real plans, our determination to make the 2010 Games an extraordinary event ever." From the City's deputy Mayor, Anne Roberts, "Strong partnerships between governments and the private sector will help build sustainable communities, and to achieve that we have to work with existing businesses as well as find ways to attract new businesses, and to work with those businesses and the residents, so they can all benefit from increased economic activities and job opportunities." When the decision was announced, it was a who's who in the audience: VANOC Board member and Vancouver City manager Judi Rogers, a Vancouver city counsellor whose name is synonymous with the downtown east side over the last 20 years, Jim Greene, and VANOC board chair Jack Poole, CEO John Furlong, senior vice-president of Sports, Cathy Priestner, and the provincial government's minister who has interests in the social spending that occurs in the area, Murray Coell, just to name a few of the roughly 50 executives. Furlong gets the last word on this, "One of the things we asked of Bell during our negotiations with them was to embrace the projects that mean a lot to VANOC, and this means a lot to us because we've made promises to keep everybody involved in the Games, and make them fully inclusive. We have to step up fairly early on to really demonstrate that you're serious about what you say. It'll say a lot about us if we can trigger this sort of activity over the coming years. This is our first significant contribution to anything."
- Board chair Jack Poole says the first year's review of the performance of VANOC CEO John Furlong is just about finished and, "I would say the result will be A-double plus. We're in very good hands. We were so fortunate to have a man of John's business ability, integrity and so knowledgeable about sports. You don't often get that all in one package, and we've got it all with him." Poole says that he expects the Board to fully approve Furlong for his second year, which starts in February.
- Poole also says he's quite comfortable with the process that VANOC has in place to deal with aboriginal concerns, expressed during the environmental review of the proposed Whistler Sliding Centre in the Callaghan Valley. "The First Nations partners [of VANOC] are fully involved every step of the way," he says, conceding, "There are issues, they're being managed and addressed." The tone of the complaints by the Lil'Wat and Squamish bands, who are claiming the land on which 2010 venues are being built, is that VANOC is talking a good deal, but not actually accomplishing a resolution of aboriginal concerns. "I think [Squamish] Chief Gibby, a 2010 Board director, is as comfortable as we are that there is an honest process in place, and we're not just paying lip-service, that they're actually involved."
Originally published to Morgan:News:2010:Gold subscribers on January 21, 2005
Morgan:News:2010 |VANOC| #785
MAKING SKI JUMPS PERMANENT NOT A WISE BUSINESS DECISION, ACCORDING TO SVP OF SPORTSThe chairman of the Vancouver 2010 Olympic Organizing Committee's Board of Directors, Jack Poole says the decision about whether to continue with the decision to make VANOC's two ski-jumps temporary or, as the national sports federations are urging, to make them permanent, "is very much under review now."
And, he adds, "It's all going to be a question of sustainability, and whether there will be the need and the utilization of that, post-Games. I think we're moving toward it being a temporary facility for the Games, rather than permanent, but that decision hasn't been finalized. That's the direction it appears to be going, but we want to wait and see what the final outcome is in Calgary, and it's close to being settled there."
That's not going to make the Canadian Ski and Snowboarding Association, which represents 77,000 participants in nine types of winter sport, nor Ken Read, president of Alpine Canada, or other national snow sports organizations happy. CSSA managing director, David Pym, says the Calgary Olympic Development Agency's decision to end its financial support for ski jumping and shut down the Calgary Olympic's seven ski jumps at the end of this season, will kill any change for Canadians to compete in ski-jumping, "The current VANOC plans for the Ski Jumps to be built, which will cost many millions to construct do not make any provision at all for athlete development, no provision for the important summer training and will not be available to Canadian developing athletes and will likely be dismantled after the 2010 games leaving no legacy. With the withdrawal of CODA and the shut down of the Calgary Ski Jumps this sport will have received a death sentence." The CSSA is the umbrella organization representing the nine snow sports federations in Canada: Alpine Canada, Cross Country Canada, Canadian Snowboard Federation, Canadian Freestyle Association, Speed Skiing Canada, Ski Jumping Canada, Nordic Combined
Canada, Canadian Association of Disabled Skiiers and Telemark Canada.
As Read tells Morgan:News:2010, "As a sister discipline of ski jumping and nordic combined, we have endorsed the CSSA position of supporting both disciplines. We understand that both sports are in final development of a business plan and will be meeting shortly with the funding partners - VANOC, the COC, Sport Canada and CODA. It is our belief that the Canadian public wants to see Canadian athletes be
successful in 2010 and support all sports that are on the 2010 calendar, to provide Canadian athletes and their sport organizations the opportunity to perform their best, and to build a sustainable sport system to ensure continued Canadian sporting excellence in 2010 and into the future."
VANOC's senior vice-president of Sport, Cathy Priestner, says that before CODA made its decision, she asked the CSSA and others how the Whistler ski jumps could be sustained if it was made permanent. "Not one organization was able to come forward and say, 'Yes, we can support this, we have a plan, we can make it work'. In light of that, we made the decision we would only address the Games requirement, and that's the status right now."
Priestner says it would simply not be a smart business decision to have a legacy portion to the venue. "Whether CODA is there -- or not -- is really not all that relevant. When you look at the community, the location, the population that you'd be drawing on, and then the lack of resources that goes toward those sports, the decision is obvious. VANOC and the Legacy Trust [which will run the portions of the venues that will continue in operation after the 2010 Games with a C$110 million endowment from VANOC] does not have the resources for that. The funds are intended to go toward the operation of the facilities. If you operate them, but don't have programs for them, it's not a smart decision. It's not VANOC's responsibility to support the development of sport; we've take the position to encourage the high-performance initiatives in sport, but certainly we can't be everything to everyone."
Priestner agrees, however, that VANOC is getting a lot of pressure to make the facilities permanent. "Remember that we made the decision to make the facilities temporary, believing that CODA was staying in the ski-jump business. CODA making their decision after ours is not overly relevant. We made our decision based on the facility and what we knew after going to the sport and asking how they could support it. Whether CODA's there or not is not going to impact the long-term availability of the facility in the Callaghan."
Priestner says the design of the WSC is nearly finished, "it's looking good", and, although the project is still about six months behind VANOC's internal planning, that it's "pretty much on schedule."
Originally published to Morgan:News:2010:Gold subscribers on January 21, 2005
Morgan:News:2010 |VANOC| #784
MASTER MARKETING AGREEMENT TO BE SIGNED "WITHIN DAYS" BUT FUNDAMENTAL DECISIONS STILL TO BE MADEThe Chairman of the Board of the Vancouver 2010 Winter Olympic Organizing Committee (VANOC), Jack Poole, following the January Board meeting, says the master marketing agreement between VANOC and the International Olympic Committee is still not completed, despite the decision by VANOC CEO John Furlong and his senior vice-president of Marketing, Dave Cobb, to travel to Lusanne, Switzerland to negotiate it.
"It's very close to getting settled," says Poole, "Perhaps within days, and worst-case, weeks. There are no controversial points that we're aware of." Poole dismissed concerns that under VANOC's planning, the deal was supposed to have been done by last October. "It's an important deal to negotiate, and the IOC think we're moving with lightning speed, so we're, by nature, impatient and our schedule was quite ambitious. For example, the IOC released the telecommunications category so we could do the deal with Bell Canada -- there's very much a sense of partnership with us, and the IOC did not want to stand in the way of business getting done. On the other hand, it's a document that we'll have to live with through 2010, so nothing was taken for granted, and that's why it's taken a while." Poole says that despite the fact the start of the eight-year marketing period for VANOC, January 1, has passed, companies should not read into the delay that things have been on hold. "There's been some important work going on in the meantime in anticipation of the agreement being signed; we haven't been sitting on our hands. I think as the weeks and months unfold, you'll see some results."
Furlong agrees, "There are no sticking points, so my feeling is that the agreement will be signed within a very brief period of time. Days. We're pretty well there. Most of it's our own ambition. We're still doing it in record time, as far as we're concerned. Typically, what happens is these negotiations often start late and end late. We will have a marketing agreement to support eight years of marketing activity for VANOC, so it's a great situation. In the past, Organizing Committees have struggled to get this done, and it's taken them months, and months, and months. Well, every month you take off the agreement with the sponsors is less money for that sponsor to get a return on their investment, and it's less opportunity for us to achieve more revenues. There's a lot of complexity to this agreement, there's a lot to understand, and there are a lot of moving pieces. There are TOP sponsors [those who deal with the IOC], there are some that may be here and may not be here, and there are all sorts of little things. All of that is pretty much behind us, and we're just waiting to do revised editions of where we're at. But we're there; there's nothing standing in the way of signatures now."
Furlong says VANOC has had "well over a hundred meetings" -- and he's been involved, he says, in about half of them -- "with potential sponsors in Canada the last four months. We're working extremely hard to attract Canadian companies to the Games, and it's going well. It's hard, hard work because, in order to be effective at this, the vast majority of the work in the early stages takes place in Eastern Canada."
Despite Furlong's comments that the master marketing agreement is essentially a done deal, he says there are still some fundamental questions about how the process of bidding on sponsorships will take place. "Category by category, we're not sure how each one will go. Market conditions could drive some of it, and we have to make application to the IOC as we go along, after the agreements are signed, to have sponsorship categories released. As each one is released, we'll look at the marketplace and decide what's the protocol, what's the process, what's going to work best for us, because, ultimately, our job is to get the best deal we can. So we might use entirely different protocols for different categories. We just don't know yet. But what we will try to do is use the best business protocol for us."
Not only that, but Furlong says that even the order of category will be flexible. For instance, the Financial Services sponsorship, in which it is known that at least the Royal Bank and the CIBC bank will be making approaches, will not necessarily be resolved next. "And even if categories were released together, or in a sequence, like 1-2-3, they could reverse the order in negotiations. Some of them could be quite a bit more technical, some of them could be fairly straightforward, and some will overtake others, depending on how long it takes to get an agreement. So it will depend on each one. In some cases, sponsorship agreements are often weighted very heavily on Value In Kind. That sometimes takes a long time to work out. If it's just straight cash, well, sometimes that's a little easier to get to. So there won't be any sort of consistent protocol."
Originally published to Morgan:News:2010:Gold subscribers on January 21, 2005
Morgan:News:2010 |VANOC| #783
BELL TO MAKE "EXTRAORDINARY" CONTRIBUTION TO 2010 "OWN THE PODIUM" PROGRAMThe CEO of the Vancouver 2010 Winter Olympic Organizing Committee (VANOC), John Furlong, says that under the "Own The Podium" program, in which he committed VANOC to raise C$55 million through sponsorship funding, Bell Canada will be making a significant contribution to program, but he declined to provide the amount. As well, he says, he expects that companies doing business with VANOC will continue to the program's support.
"I'm not going to say today what Bell Canada is going to contribute because they will be making their own announcement," he told Morgan:News:2010, adding that Bell Canada's world-record telecommunications sponsorship arrangement, worth $C200 million to VANOC, "includes an extraordinary commitment to this program at a level never seen before in Canada." Furlong says that he has personally participated in more than 50 meetings with potential corporate sponsors of the 2010 Winter Games over the last few months -- and, he noted, there were others in which he was not personally involved but included Dave Cobb, his senior vice-president of Revenue, Marketing and Communications. "In our discussions with corporations who might become sponsors or partners with VANOC, that a perfect partnership with us is to support the staging of a perfect Olympic and Paralympic Games, and to support the preparation of the athletes, and nobody is fighting that. All of the organizations that we talked to are interested in this. They all see the definition of success as we do; great Games and great results. Our view is that most companies that join us, especially at a very high level, will participate in this program and support it, to get the results that we all so badly want."
The "Own The Podium" program, authored by VANOC's senior vice-president for Sport & Venues, Cathy Priestner, calls upon all the organizations involved in the development and support of high-performance sport in Canada to unite under a common vision of funding the things that are needed to recruit, develop and support athletes in the 13 major winter sports so they can place as high as possible in pre-Olympic contests, such as World Cup events, and convert their placements into medal performances during Olympic Games. "We have to bring about 60 athletes into the system if this [program] is going to work. We can do it, and we know they're out there."
In part, that means providing a specific development plan for each sport, and finding the financing for it. The "Own The Podium" report written by Priestner had completed that part of the research and analysis, and now the sports organizations, various government levels and VANOC will sell the program's concepts to companies to pay for it. She adds that while 2010 seems far away, many countries start between eight and 10 years out from a specific Olympics to begin support for it. "The technical implementation needs to start now, and we need to recruit, starting now, and we need to get start getting the performance-enhancement teams in place."
Preistner says there are a number of things that can -- she says "must" -- be done immediately, and they support the concept of continuity for high-performance support between Olympic Games, which, she says, Canada is not good at. "One of the things we found was that 90% of the team leaders going to Olympic Games have no Olympic experience; 70% of the coaches who will be taking Canadian teams to the Torino Olympics next year have not been to an Olympic Games, and yet they are taking three-time Olympian athletes. We've got to do something to help them."
Priestner says that in order to become a number-one contender in winter sports -- Canada was fourth in the 2002 Winter Olympics, and 13th in the Calgary Olympic Games -- all the sports had agree "they wanted to be number one in 2010 and, in doing that, they took some risks [with their own agendas].
This is not a part of the "Own The Podium" program, specifically, but as part of its arrangements in setting up the marketplace for the 2010 Winter Games, VANOC, according to the president of the Canadian Olympic Committee, Chris Rudge, last fall took over the marketing function of the COC for the next eight years, until the master marketing agreement between VANOC and the International Olympic Committee ends with the start of the 2014 Winter Games. Rudge says COC sponsorship arrangements contributed between C$10 million and C$12 million per year to the COC, but, as Rudge puts it, "The COC is out of the marketing business for now." He says that VANOC will, during that time, support the COC, instead of being directly supported by the IOC. As a result, VANOC will take the lead role in the non-governmental fund-raising. Rudge says that the COC's goal now is to provide the support for the sports, but not be intrusive or "intrude on the management of the sports," which is handled by the national sports organizations.
Alpine Canada president Ken Read says some of the funding goals that the "Own The Podium" program hopes to achieve in supporting high-performance athletes win medals in 2010 include collaboration with VANOC by specific sports, and a range of specific purchases by specific national sports organizations, such as his and Cross-Country Canada.
Read says, for instance: "Sport sciences: Alpine and Cross-Country are looking at getting a base grinder, so we can work on the sliding side with our skis; Cross-Country sliding across the flats and Alpine, sliding at speed, using gravity. In safety, crash barriers for the short-track speed-skaters at their facility in Montreal... so they can train optimally. Equipment: for skiers, that's a very important piece, with skate technicians so our athletes can focus on preparing themselves, or in venues, a strategy to give athletes access to build off that home-field advantage, and we'll be working closely with VANOC and our athletes so they are extremely well-prepared for the pre-Olympic competitions before 2010, and also for the Games... in 2010 itself."
A base grinder? "A lot of the Olympic sports are based on sliding on snow. Each of those sports, individually, doesn't have the resources to buy a base grinding machine. But if we work together with our funding partners, we will. And that means that in alpine, cross-country, biathlon, snowboarding and freestyle can have access to something we can use as a research tool to give our athletes an edge, because the Americans and the Austrians have it. Those are the kinds of pieces that give us a step up."
As Read points out, "Canadian winter sports right now is enjoying success... but the goal is to convert that success into results in the [Winter Games in Torino, Italy] in 2006, and in Vancouver in 2010, and that's going to take a lot of work."
Priestner says there was one major question the "Own The Podium" report needed to answer: "How can success on an Olympic Games podium be predicted? There were lots of different challenges and issues that needed to be discussed and achieved. Our history isn't very good. When we've hosted a Games in Canada, we've never won gold, and we don't want to be in that position again. We're forecasting for Vancouver [under the OTP program] 12 gold medals and, hopefully, 35 medals overall. If we don't do anything, we're forecasting we'll have 16 medals overall in 2010, and that's based on what's in the system now and what's happening with the system."
Priestner says she looked at two different criteria for predicting the number of medals Canada could achieve. "We had to first establish who was a potential medalist. In our research, if you had two top-5 placings in World Cups in the season directly before the Games, you were a medal-potential athlete. Two out of three medalists in all countries prove this to be correct. [The second criteria involves] how many of those athletes are converting their success to an Olympic medal. We used a formula that took the number of potential medalists times what we hope historically and in the future will convert into a medals. We took the top nations in the world, the ones that Canada is competing against and the ones that we want to beat. Overall they averaged a 45% success rate. Canada, and in particular, the top formations, were converting at a 27% percent rate. So, one in four of the athletes going to our games are winning medals. When you look at the leading nations -- Norway, the U.S., Germany -- anywhere from 55% to 92% are converting their performances to medals. We saw this as a huge gap in our system, and we had to explore the reason for that. We're among the lowest in the world, and, in fact, many of the smaller nations are converting at a higher rate than Canada."
Priestner says there are two different approaches to correcting the gap. "One is to increase the number of potential medalists that we have. We identified the sports that are in the program that still have an opportunity between now and 2010 to increase their potential medalists. We are a little short in some of the sports, and we may have to bring them in from other sports where they are already high-performance athletes, train them in the sports we're focusing on, and have them ready to go. The second piece was to increase our success rate. There are a number of things we have to do. Our goal is to get to 50%, which is still lower than the lowest of the top nations we're competing against, which is at 55%, but if we get to 50%, we think we can accomplish our goals."
Producing the report involved several technical reviews for each sport, and Priestner's conclusions involved a detailed sport-by-sport plan, but it meant, once the results were in, targeting specific sports for support, and releasing others, such as the decision by the Calgary Olympic Development Agency to drop funding support for ski jumping after this season, even though it's a sport that will take place in 2010. "There's never going to be too much to go around as far as resources are concerned, so we have to target sports, and do the right thing with them." It also focused on Canadian sport culture -- defined by the amount of Canadian participation in the sport -- Olympic success back to 1994 and the potential for 2010 in each sport. "Tier 1 were flat-ice sports. We're a skating nation. We do well at it, we have a lot of history and success with it. And we predict that if you're in a Tier 1 sport, without doing a lot about it, we'll probably achieve medals. Are we going to win gold? No, not unless we implement some of this program. Tier 2, we have a pretty good chance and they met two out of the three criteria. Tier 3 sports are there for an obvious reason: they are facility-based sports. They can only be done in one or two cities in Canada, and it limits the opportunity of our youth and their number."
The VANOC svp also says that the OTP organizations need to build a Canadian identity for winning. "We need to say we want to win, We need to set benchmarks for our athletes and our NSOs [national sports organizations]. We have to know if our athletes are on track to be medallists and, in fact, until recently, we haven't been able to measure that and track it, and give valid information to the NSOs as our athletes are working towards Olympic Games. We also needed a united funding program, and leadership for it, and we needed all of our funding partners to unite behind it, with the same sort of criteria, with the same sort of mission and goals."
Priestner says there is one type of athlete that's not part of the prediction formula, what she calls the dark horse, and that's the other third of athletes that convert their performances to medals. "These are athletes that are coming from the 9th to 18th-place ranking, and really isn't on the radar screens. Canada is the only national in 2002 who did not have a dark-horse performance. With the leading nations, somebody predicted to win a medal couldn't do it, and someone else came along, a dark horse, and won the medal, and we are not doing that in Canada. We have to figure out what we can do with these athletes, who are special. Were they injured and coming back, or do they need a different type of preparation, and they could be responsible for one-third of the medals, possibly, and we've really ignored them so far."
Priestner says her report lists needs and gaps in each of the sports. But, she says, there are some overall themes. A major weakness is in the area of direct athletic support: physiologists, nutritionists, psychologists and the like. "We don't have enough of them. We have one physiologist that every one of the sports named as the physiologist for their team. And I happen to know that he's also working with half a dozen summer sports. We have to put together comprehensive teams to support each of our NSOs and their athletes."
In addition, she says, Canada has too many athletes going to Olympic Games who don't have what they need when they arrive.
She also says that a major gap the "Own the Podium" program identifies is, as she puts it, "having the edge." Priestner says she no athlete or sport she talked to during her research went into the Games have an advantage. This, she defines as "having an edge over other countries. We believe that if we take a pro-active role in research and development, technology and human performance, then we can be ahead of the world." But, she adds, that, perhaps ironically, this is the one area that needs to remain, by definition, secret. "What we're using right now is what Austria or Norway used three years ago. We have to target what we want, then we have to go after it, so we'll have something everyone else wants."
Priestner agrees that home-field advantage is one potential edge for Canada in 2010.
RESOURCESSummary of the "Own The Podium" program:
http://www.olympic.ca/EN/organization/news/2005/0121_background.shtmlA PDF file of the full "Own the Podium" report:
http://www.olympic.ca/EN/organization/news/2005/files/otp_final.pdf
Originally published to Morgan:News:2010:Gold subscribers on January 21, 2005