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Australian Premier Daniel Andrews said on Tuesday that his government has pulled out of hosting the 2026 Commonwealth Games due to the massive increase in the expected cost of staging the multi-sport event.
Daniel Andrews said his government agreed last year to host the next edition of the quadrennial event “but not at any price”.
He said his government had initially set aside 2.6 billion Australian dollars ($1.8 billion) to host the games in five regional cities, but recent estimates put the potential cost at up to 7 billion Australian dollars ($4.8 billion).
“What has become clear is that the cost of hosting these Games in 2026 is not the $2.6 billion that was budgeted for,” Andrews said at a news conference.
It is, in fact, not less than 6 billion dollars, and it can reach 7 billion dollars.
I’m not going to take money out of hospitals and schools to fund an event that’s three times the cost[that]was estimated and budgeted for last year. In terms of where we go from here, the Games will not continue in Victoria in 2026.”
The 2026 Games were to be held from March 17-29 in the regional centers of Geelong, Bendigo, Ballarat, Gippsland and Shepparton.
The Commonwealth Games Federation issued a statement saying the decision was “extremely disappointing” for the organization and the athletes and was taking advice on its options to find a resolution for the event in 2026.
The GFA said the estimated cost increase was mainly due to the multi-city regional hosting model and the Victorian government’s decision to change venue plans and include more sports.
“This is hugely disappointing for the Commonwealth Sports Movement, for the athletes across the Commonwealth and for the Organizing Committee who are progressing so well in planning and preparation.
The reasons given are financial. The figures quoted to us today of $6 billion are 50% more than those advised by the Organizing Committee at its meeting in June.
These figures are attributed to higher prices primarily due to the unique regional delivery model that Victoria has chosen for these games, particularly with regard to village building, venue and transport infrastructure.
Since Victoria was awarded the Games, the government has made decisions to include more sports and an additional regional centre, and changed stadium plans, all of which have added significant expenditures, often against the advice of the Commonwealth Games Federation (CGF) and Commonwealth Games Australia (CGA).
“Today we learned that the Victorian government has retracted its agreement to host the 2026 Commonwealth Games,” the CGF said in a statement.
“We are disappointed that we were only given eight hours’ notice and no consideration was given to discussing the situation to find common solutions before the government came to this decision.
Up to this point, the Government was informed that sufficient funding was available to deliver the Victoria 2026 Commonwealth Games.
“We are taking advice on the options available to us and remain committed to finding a solution for the Games in 2026 that is in the best interest of our athletes and the broader Commonwealth Sports movement.”
The state of Victoria hosted the 2006 Commonwealth Games in Melbourne. The last edition of the Games to be held in Australia was on the Gold Coast, Queensland in 2018. The Gold Coast is part of the South East Queensland region that is set to host events during the 2032 Olympic Games in Brisbane.
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