Commonwealth Games bombshell cost update ‘does not add up’

Australian sporting kingpins have turned a flamethrower on the Victorian Government with a claim Daniel Andrews hasn’t told the truth.

The Victorian Government has been told it has jeopardised Melbourne’s claim to be the sporting capital of the world after the bombshell decision to kill off the 2026 Commonwealth Games.

Premier Daniel Andrews on Tuesday morning confirmed the Games have been scrapped as a result of funding issues.

The decision has been met with an avalanche of anger from Australian sporting officials — and shocking details about the affair are beginning to emerge.

In a withering attack from Commonwealthh Games Australia Executive Officer Craig Phillips, Mr Andrews has also been accused of telling misinformation surrounding the process in which the government put its hand up to host the event.

Mr Andrews said a costings blow out forced the government’s hand, declaring he had no confidence the Games could be delivered for less than $7 billion. It was originally estimated the 12-day event could be delivered for $2.6 billion.

Phillips has called the new estimates a “gross exaggeration”.

“Beyond disappointing for us,” he said on Tuesday.

“It’s a comprehensive let-down for the athletes, the excited host communities, First Nations Australians who were going to be at the heart of the Games and which millions of fans that would have embraced the sixth home Games in Australia.”

Sky News host Laura Jayes was among those on Tuesday morning to question the new estimates for the regional Victorian games.

She posted on Twitter: “Premier @DanielAndrewsMP says the Victoria Commonwealth Games would have cost more than $7B. What were the swimming pools going to be made of gold? Birmingham in 2022 cost England just $1.5B. This does not add up.”

It was confirmed in April, 2022, that Victoria had won the rights to host the event, with Andrews declaring the event “will be the Regional Victoria games”.

Planning documents showed the intentions were to establish hubs in Geelong, Bendigo, Ballarat and Gippsland, each with an athlete’s village.

Shepparton was also planned to host events, and the MCG would have hosted the opening ceremony.

The Games aren’t returning to Melbourne. Photo by William WEST / AFP.

In a statement released on Tuesday afternoon, Phillips made bombshell claims government officials ignored advice to save costs by moving events to existing stadiums and facilities in Melbourne.

Phillips also said Commonwealth Games Australia was not notified about the changed budgetary estimates until the government had already made its decision.

“The multi-city model for delivering Victoria 2026 was an approach proposed by the Victorian Government, in accordance with strategic roadmap of the Commonwealth Games Federation (CGF),” he said.

“It was pitched to the CGF after Commonwealth Games Australia (CGA) had sought interest to host the Games from several states. They did not step in as hosts at the last minute, as indicated by the Premier earlier today.

“The detailed budgetary implications announced today have not been sighted or discussed with the CGF or CGA ahead of being notified of the Government’s decision.

“The stated costs overrun, in our opinion, are a gross exaggeration and not reflective of the operational costs presented to the Victoria 2026 Organising Committee board as recently as June.

“Beyond this, the Victorian Government wilfully ignored recommendations to move events to purpose-built stadia in Melbourne and in fact remained wedded to proceeding with expensive temporary venues in regional Victoria.

“CGA would welcome the opportunity to review the financial analysis prepared independently of those who have been involved at the coal face of planning and delivery.”

Opposition senator slams decision

Coalition senator Anne Ruston has called on prime minister Anthony Albanese to “take responsibility” for Victoria’s decision to cancel the Commonwealth Games, arguing it has dented Australia’s international reputation.

“I say to the prime minister: Australia’s reputation has been damaged today and you should be very worried about the damage this does to Australia’s international repuatation,” Ruston said.

“You should come out and take responsibility because it is not just Daniel Andrews’ lack of leadership, it is a lack of leadership from the Australian government to ensure Australia’s international reputation is not damaged in the way it has been this morning.”

Senator Anne Ruston says the decision has damanged Australia’s reputation. Picture: NCA NewsWire / Martin Ollman

Ruston said the Victorian government showed “contempt” by ditching the Games, and a Senate inquiry will delve into the decision.

“We also saw the Commonwealth Games Federation say eight hours notice by the Victorian government for trashing and stopping the Games,” Ruston said.

“That is a disgusting exhibition of the contempt the Victorian government, and by association the federal government, holds international sporting bottles like the Commonwealth Games Federation.

“This is a terrible decision for Australia but it is also very disingenuous and I think as we dig into the decision this morning, which we will do through our Senate inquiry, you will see that the Victorian government is hiding its incompetence behind a smokescreen of saying this is a budget blowout.”

Australia is due to host several major sporting events, including the 2027 Rugby World Cup and the 2023 Brisbane Olympics, and Ruston claimed this decision wouldn’t fill organisers with confidence.

“What does this say to them?” she said.

“That state governments can just rip up host contracts and walk away and leave Australia’s reputation in tatters and the chances of us being successful in future international events being brought into question?”

Daniel Andrews at today’s press conference. Picture: Today/Channel 9

Australian Olympics supremo John Coates has also fired a shot at the Andrews Government, saying he can’t understand “how the government could have got it so wrong”.

“This is a terrible embarrassment to Australian sport,” the International Olympic Committee (IOC) vice-president told The Australian.

“We shouldn’t be bidding for events unless we know that we have the necessary commitments and support of the various governments – and unless the business case stacks up, clearly though from what Daniel Andrews is telling us now, it didn’t – and it didn’t support [the business case].

“I think the other thing is and we’re seeing now the individual sport model goes pretty well because it’s over a longer period. The Matildas are playing for an extended period with 32 teams involved in the World Cup. The rugby World Cup in 2027 – I believe they will be a great successes. And you have to wonder then, what is the future for the Commonwealth Games?”

He said he was always sceptical of the concept of a regional Games.

The staggering cost blow out would be off the charts and would have shattered the record for the most expensive Commonwealth Games ever staged.

The event was held in Melbourne in 2006 with total costs of $1.1 billion.

The 2022 Commonwealth Games in Birmingham were also delivered at the cost of £778 million ($1.5b).

The 2018 Games on the Gold Coast was also widely praised for delivering significant economic impact to south-east Queensland at a total cost of $1.8 billion.

The insane estimates would also match the $7.1 billion in funding going towards the 2032 Brisbane Olympics.

“I’ve made a lot of difficult calls, a lot of very difficult decisions in this job,” Andrews said.

“This is not one of them. Frankly, $6b (or) $7b for a sporting event, we are not doing that. That does not represent value for money, that is all cost and no benefit.

“I will not take money out of hospitals and schools in order to fund an event that is three times the cost is estimated and budgeted for last year.”

The closing ceremony of the 2006 Commonwealth Games in Melbourne.

The most expensive Commonwealth Games ever staged were in Delhi in 2010 at an estimated cost of US$4.1 billion.

The huge expenditure was at the time expected to create thousands of jobs, including 600 before the start date, 3900 during the games, and 3000 beyond the closing ceremony.

However, the new estimated costs of $500 million per-day have changed everything.

The shock decision to abandon the Games comes after a public war of words between Mr Andrews and Australian Prime Minister Anthony Albanese after the Victorian event failed to receive a dollar in federal funding as outlined in May’s budget.

Mr Andrews said, instead of proceeding with Games, they would direct more than $2 billion to regional Victoria.

“First and foremost, each and every one of the permanent sporting facilities that were to be legacy benefits from the Games will be built,” he said.

“There is a very substantial regional tourism fund and a substantial package of support for community-based sport and perhaps most importantly they will be a $1 billion boost for social and affordable housing right across regional Victoria and not just in those hub cities but they will be at least 1300 new homes constructed across regional Victoria.

“This represents a massive boost and a direct response to what is perhaps the biggest challenge across regional Victoria and indeed across our state and that is the supply of housing and the number of housing options that Victorians have before them.

“That is in many respects the biggest and best lasting legacy that we can leave, somewhere to live and a market that has more supply for those who need it.”

The embarrassing backflip will send shockwaves around the world, but the greatest impact will be on regional Victoria.

Victorian Opposition Leader John Pesutto was scathing of the botched event planning.

“The Andrews government’s decision to scrap the 2026 Commonwealth Games is a massive humiliation for Victoria,” Mr Pesutto posted on Twitter.

“This decision is a betrayal of regional Victoria and confirms that Victoria is broke and Labor simply cannot manage major projects without huge cost blowouts.”