Key Points
- Victoria has pulled out of hosting the 2026 Commonwealth Games.
- Cost estimates have blown out to nearly $7 billion, Premier Daniel Andrews said.
- Commonwealth Games Federation said the government did not discuss solutions with it before reaching the decision.
Every state has ruled out stepping in to host the 2026 Commonwealth Games after the Victorian government cancelled the event due to an estimated cost blowout, drawing criticism from organisers.
On Tuesday, the premiers of NSW, Queensland, South Australia, and Tasmania said they would not host the games, with budgetary pressures and costs outweighing benefits cited as reasons.
It came after Victorian Premier Daniel Andrews withdrew from hosting the games in the state after updated estimates put the cost at up to $7 billion.
Andrews has been accused of inflating the estimated cost of hosting the 12-day sporting event and ignoring options to justify cancelling the global sports event.
"Frankly, $6 billion to $7 billion for a 12-day sporting event, we are not doing that," he told reporters on Tuesday.
"That does not represent value for money, that is all costs and no benefit."
The state budget last year outlined $2.6 billion would be spent preparing for the event across regional Victoria.
Geelong, Bendigo, Ballarat, Shepparton and Gippsland were named as host centres and the Melbourne Cricket Ground as the opening ceremony venue.
Andrews said the government considered moving the games to Melbourne, holding fewer sports and having fewer regional hubs, but all options were too expensive.
"None of those options stack up," he said.
Commonwealth Games Australia chief executive Craig Phillips said the forecast cost overruns, in his view, were a "gross exaggeration". Source: AAP / James Ross
Andrews said the games were not worth the money even if the federal government did come to the party.
Opposition sport spokeswoman Anne Ruston said the cancellation damaged Australia's reputation.
"You should come out and take responsibility because it is not just [Victorian Premier] Daniel Andrews' lack of leadership, it is a lack of leadership from the Australian government," she said.
Prime Minister Anthony Albanese said the decision to pull out was one for the Victorian government.
The Andrews government held meetings with Commonwealth Games leadership in London on Monday night Australian time, with organisers informed the 2026 contract would be terminated.
A graph showing the costs of hosting the previous Commonwealth Games. Credit: SBS News
'Gross exaggeration': Victorian government accused of inflating cost
The Commonwealth Games Federation said the government did not discuss solutions with it before reaching the decision.
Commonwealth Games Australia chief executive Craig Phillips said the forecast cost overruns, in his view, were a "gross exaggeration" and the government didn't seriously consider other options.
"The Victorian government ignored recommendations to move events to purpose-built stadiums in Melbourne and remained wedded to temporary expensive venues in regional Victoria," he told reporters.
Phillips said the decision "has jeopardised" Melbourne's global reputation as the sporting capital of Australia.
"I would be very careful if I were an international sporting body coming in and doing business in this state in the future," he said.
The cost of breaking the games contract is yet to be settled, but Andrews pledged it would be revealed at a later date.
He suggested contracts for major upgrades to sports venues, and housing have not been signed, with minimal costs incurred to date.
How did the athletes react?
Athletes have expressed shock and disappointment on social media.
Swimmer Rowan Crothers, who represented Australia at the 2016 and 2020 Paralympics, said the cancellation would be particularly disappointing for many athletes with a disability.
"The Commonwealth Games is the biggest major international competition that features athletes with a disability alongside able-bodied athletes," Crothers
"A great opportunity to raise awareness for disabled sport. Seeing the Games cancelled will suck for the state of inclusion."
Race walker Jemima Montag told ABC Radio she felt "deflated" after hearing the news.
"It's so important for us to have the opportunity to have a home crowd," she said.
"It's expensive for friends and family to fly overseas to watch us compete, and so really, it can be a once-in-a-lifetime opportunity."
Some infrastructure projects to go ahead
While Victoria will no longer host the games, some infrastructure projects will still go ahead.
There will be $1 billion spent on more than 1,300 new social and affordable housing homes across regional Victoria and $150 million on tourism and events.
Planned upgrades to regional sporting facilities are also set to go ahead.
About 100 people based in Geelong were employed to co-ordinate the games, with some expected to lose their jobs and others redistributed to other government roles.
Regional Victoria was the only bidder for the games after the South African city Durban lost the 2022 event, and the original 2026 host Birmingham stepped in to fill the void.
Victoria's opposition leader, John Pesutto and Nationals leader Peter Walsh branded the scrapping a "massive humiliation" for the state in a joint statement.
"The cancellation of the Commonwealth Games is hugely damaging to Victoria's reputation as a global events leader."
