A recipe for disaster – Beyond the Games – Montreal’s Olympic Story

Construction of the Olympic Park got off to a slow start in 1973, and then a global catastrophe hit: a period of uncontrolled inflation. The price of everyday goods jumped, becoming unaffordable for many consumers. Inflation had a huge impact on the Olympic construction sites because the price of building materials skyrocketed as well. For example, the price of steel, which is essential for reinforcing the interior of concrete structures, jumped from $200 a tonne to $1,200.

A black and white cartoon shows Mayor Jean Drapeau writing a calculation on a blackboard: one billion dollars divided by two. He explains in French, "If we divide the overall deficit by the number of Olympic Games, we can reduce the debt by half, get it?" — Jean Drapeau cuts the debt in half by suggesting that Montreal host the 1984 Olympics

A black and white cartoon depicts Mayor Jean Drapeau unsuccessfully trying to perform the linking rings trick with the five Olympic rings. He holds two up in the air in one hand and rests his other hand on a third ring standing on the ground. A fourth ring is around his neck, and the last one is around his ankle. — Jean Drapeau is losing control

Another major consequence of inflation: the wages negotiated by workers were no longer adequate. Since employers refused to increase them, unions called two massive strikes, one in 1974 and one in 1975, delaying work on the stadium, the pool and the Velodrome. Result: construction progressed very slowly.

On top of all these challenges was the issue of rampant corruption. According to architect Roger Taillibert, concrete was being diverted from construction sites and sent into the city and surrounding suburbs to “build mansions and pools, at the city’s expense.” That’s right: swimming pools! In 1975, the Quebec government was so concerned that it seized control over the project from Mayor Drapeau and gave it to Victor Goldbloom, the Minister of the Environment and Municipal Affairs.

The final bill for the Olympic Park was $2.4 billion and the Olympic debt was not paid off in full until the summer of 2006!

Show me the money!

Mayor Drapeau constantly insisted that the Games would pay for themselves. In January 1973, he stated that they would be funded in full by three fundraising initiatives: commemorative coins, postage stamps and the Olympic lottery. But in the end, on May 11, 1976, a fourth source of funding had to be added: the tobacco tax.

Coin and stamps

Collectible coins and stamps commemorating the 1976 Games were sold around the world.

In black and white, Mayor Jean Drapeau, the Commissioner General of the Olympic Games Roger Rousseau, and the federal Postmaster General Bryce Mackasey hold up large-format copies of three Olympic stamps. — Presentation of the last series of commemorative stamps for the Montreal Olympic Games, June 18, 1976

Olympic lottery

The Olympic lottery was the first in Canada to offer a jackpot of one million dollars. The first winners were a group of female employees from a Quebec cigarette company who shared the amount. Tickets sold for $10 apiece and the lottery generated $235 million in revenues to finance the Games.

Tobacco tax

In the run-up to the Games, the provincial government announced an increase in the tobacco tax to help offset the Olympic debt. This tax was one of the main sources of revenue that helped finally pay off the debt in full in 2006.