Coates declares regional event was doomed as Games left without a saviour

Olympics powerbroker John Coates says a regional Commonwealth Games was destined to fail without federal government assistance and believes no other Australian city will fill the void left by Victoria’s withdrawal.

“Regional models don’t work,” the former Australian Olympic Committee boss said after the Victorian government cancelled the 2026 Games. “Firstly, you have the cost of building the venues in regional cities, some of which are dismantled and therefore provide no legacy for the region. Secondly, by virtue of their smaller size, the venues don’t yield revenue via gate takings.”

Coates said the lack of federal government support meant another state was unlikely to come to the rescue, as the Western Australian, South Australian and NSW governments ruled out stepping in as host.

“Premier [Daniel] Andrews anticipates the cost of the 2026 scheduled games in regional Victoria would blow out to $7 billion. Security, including the ever-increasing cost of cybersecurity, would represent a big proportion of that,” the IOC vice president added.

“Security is usually a cost borne by a federal government which, in the case of the 2026 Games, gave Victoria nothing,” Coates said.

“How can the federal government say no to Daniel Andrews and fund another Australian city?” Coates said. “I can’t see that happening.”

Fromer Australian Olympic Committee president John Coates with Queensland Premier Annastacia Palaszczuk Credit: Jono Searle/Getty

There was no federal funding for the 2026 Games in the May budget, and Sports Minister Anika Wells said in June the Albanese government was still working through a Victorian government proposal for federal support.

Sydney and Perth, which last hosted a Commonwealth Games in 1962, were the only Australian cities to express an interest when Victoria became the sole bidder for 2026.

WA Premier Roger Cook on Tuesday called the event “ruinously expensive”, while a spokesperson for SA Premier Peter Malinauskas told this masthead the cost of hosting the event would far outweigh the economic benefits.

“Our analysis was consistent with the Victorian government analysis that this would cost a significant amount of money and provide very little return on that investment, providing a highly expensive sugar hit of a 12-day sporting festival,” Cook said.

“What I want to see in Western Australia is a continued investment in our schools and our hospitals, making sure we make Western Australia a great place to live.”

A spokesperson from Malinauskas’ office said South Australia had “no intention” of stepping in.

“While this decision will be deeply disappointing for athletes and supporters of the Commonwealth Games, the South Australian government has no intention of stepping in to host the 2026 Commonwealth Games,” the spokesperson said.

He explained previous governments – Labor and Liberal – had dismissed the prospect of hosting the Games because the costs would far outweigh the economic benefits of the event.

“The previous state government conducted independent financial analysis on hosting the multi-sport competition, it was determined the event would cost $3.5 billion, with the economic benefit only amounting to $1.2 billion.”

“The South Australian government will continue to look to attract major events, but they must stack up and deliver economic benefits that outweigh the cost which has occurred with [the AFL’s] Gather Round, LIV Golf and the Adelaide 500.”

NSW Premier Chris Minns said the cost of the event, coupled with a bulging COVID-19 debt in NSW, meant the Commonwealth Games were not a priority.

“I’m not going to commit to a massive project that I’m not confident that we can complete given the huge pressures the government and the people of New South Wales are already facing,” he said.

“I’ve got to be acutely aware of the mandate for which we were elected. Hospitals and schools are under immense pressure.

“Hosting the Commonwealth Games would be something nice to do. Schools and hospitals are must dos.”

Brisbane has most of the sporting infrastructure already in place for the 2032 Summer Olympics, and the $2.7 billion Gabba redevelopment will also be used by AFL and cricket, but Queensland Premier Annastacia Palaszczuk said she was not interested in also hosting the Commonwealth Games.

Coates, pointing out regional Commonwealth Games have never been previously attempted, said: “I can’t see how they were ever going to work. They envisaged facilities, some of which [would] be sacrificed – erected and then dismantled.

“Victoria already has the sporting facilities in Melbourne, including a velodrome which would have had to be constructed in regional Victoria.”

“The difference between a Commonwealth Games and an Olympic Games is that the IOC brings $900 million to the table,” Coates said. “This is money already received from sale of TV rights and sponsorships. It’s a commitment. The money is there,” he said, comparing it with the Commonwealth Games where the TV rights were yet to be sold.

A source, speaking on the condition of anonymity because they are involved in the rescue mission to find an alternative host, said the Commonwealth Games Federation was shocked when lawyers for the Victorian government arrived in London on Monday with the news.

Given that Birmingham was originally slated to host the 2026 Games but filled in last year following the withdrawal of Durban, no other Commonwealth nation is likely to replace regional Victoria, particularly with just over two and a half years to the event. CGF officials are hopeful Canada, given that it hosted the first Games in 1930, will bid for the centenary event in 2030. However, it is yet to officially bid.

The source also expressed surprise at the anticipated cost blowout, given the Birmingham Games cost less than $2.6 billion and turned a profit that was distributed through the West Midlands.

The 2018 Commonwealth Games on the Gold Coast were also a cost-effective event, at $1.2 billion, and became the springboard for the bid for the 2032 Olympics.

“The Victorian Government’s budget deficit is the real reason for this decision,” the source said.

With Peter Ryan, Sarah Brookes and Michael McGowan

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