- Victoria withdraws as host of 2026 Commonwealth Games
- Cost of hosting the event skyrockets to $7 billion
- Funds to be redirected to regional housing and sports infrastructure
Victoria withdrew from hosting the 2026 Commonwealth Games, citing its refusal to spend $7 billion on “a 12-day sporting event.”
In a statement described by the Commonwealth Games Federation as “hugely disappointing,” Daniel Andrews, the premier of Victoria, stated that the cost of hosting the event had skyrocketed from an initial estimate of $2.6bn.
Andrews stated that his administration would redirect the funds to regional housing and sports infrastructure.
Andrews stated that the Games will not be held in Victoria in 2026.
“We have notified Commonwealth Games officials of our intention to seek contract termination and… not host the games.”
The CGF attacked the Victorian premier’s justification, stating that the announcement was made with only eight hours notice.
“Since awarding Victoria the Games, the government has made decisions to include more sports, an additional regional hub, and changed plans for venues, all of which have added considerable expense, often against the advice of the CGF and Commonwealth Games Australia (CGA),” the CGF stated in a statement”.
We are disappointed that we were given only eight hours’ notice and that there was no attempt to discuss the situation to jointly identify solutions before the government made this decision.
“Until now, the government had indicated that sufficient funding was available for the 2026 Commonwealth Games in Victoria,”
Andrews stated on Tuesday that the decision had been made after cost estimates reached $7 billion.
“The $2.6 billion earmarked for holding these events in 2026 will be exceeded,” he said.
“It is at least $6 billion and could be as high as $7 billion – and I cannot say with any certainty that even the $7 billion figure would adequately fund these Games.”
Anthony Albanese, the Australian prime minister, told reporters that the decision was “made by the Victorian government” and that he would leave the specifics to them.
Albanese, when asked if the decision was embarrassing, cited Australia’s “excellent track record of hosting events.” Including the impending World Cup for women’s football and the 2032 Olympics in Brisbane.
Other Australian jurisdictions have rejected the possibility of hosting the Games.
On Tuesday morning, Commonwealth Games Australia CEO Craig Phillips learnt of the updated cost projections.
He claims cost overruns exceed operating costs submitted to the Victoria 2026 Organising Committee board in June.
The state government of Victoria announced in 2022 that the Games would be hosted in regional Victorian cities, including Ballarat, Bendigo, and Shepparton, following reports that the Commonwealth Games Federation had struggled to locate a location.
Andrews stated on Tuesday that the government examined the expense of moving the Games to the state capital, Melbourne. But that doing so would have cost more than $4 billion.
He stated that the allotted funds for the Games would instead be used to construct permanent sporting facilities that had been promised to the community, including an upgrade to Ballarat’s stadium and “social and affordable” housing throughout regional Victoria.
“That is a much better way to proceed, and we are not going to invest that kind of money and have to take it from key service delivery, from other government departments, to host a 12-day sporting event,” he said.
Andrews said the government had a “amicable” and “productive” talk with the London Games authorities over cost.
He also stated that the governing body was in negotiations regarding any costs associated with discontinuing the Games.
Birmingham, scheduled to host in 2026, won the 2022 Olympic Games over Durban, South Africa, due to budgetary issues.
John Pesutto, the leader of the Victorian opposition, termed the cancellation a “massive humiliation.”
Pesutto stated, “Victoria is bankrupt and Labour cannot manage huge projects without cost overruns.”
The cancellation of the Commonwealth Games is extremely detrimental to Victoria’s reputation as a leader in global events.
The Greens of Victoria accused the Labour government of wasting “too much time and money” on the Games when they could have been invested in public and affordable accommodation.
In May, the Albanese government committed $3.4 billion to the 2032 Olympic Games in Brisbane, including more than $1 billion. But no funds were allocated for the Commonwealth Games of 2026.
Andrews stated that federal funding had “absolutely nothing” to do with the cancellation on Tuesday.
