‘Eight hours’ notice’: How Games organisers found out the event had been cancelled

Commonwealth Games authorities have blamed the Victorian government for considerably increasing the 2026 Games expenses by going against official advice and adding more sports and venues, before abruptly announcing the event’s cancellation on Tuesday.

Premier Daniel Andrews said on Tuesday that the 2026 Games would be called off, citing an estimated cost of more than $6 billion.

The Commonwealth Sport Movement said in a statement the decision was “hugely disappointing” for athletes and officials. The organisation highlighted the $6 billion figure was 50 per cent higher than the Victorian government advised just last month.

“Since awarding Victoria the Games, the [state] government has made decisions to include more sports and an additional regional hub, and changed plans for venues, all of which have added considerable expense, often against the advice of the Commonwealth Games Federation and Commonwealth Games Australia,” the statement said.

“We are disappointed that we were only given eight hours’ notice and that no consideration was given to discussing the situation to jointly find solutions prior to this decision being reached by the government.

“Up until this point, the government had advised 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.”

The Games were to be held in March 2026 across five regional centres: Geelong, Bendigo, Ballarat, Gippsland and Shepparton.

Speaking to the media on Tuesday morning, Andrews said the Games could cost more than double what was expected, which is why they have been scrapped.

“What’s become clear is that the cost of hosting these Games in 2026 is not the $2.6 billion which was budgeted,” he said. “It is, in fact, at least $6 billion, and could be as high as $7 billion.

“I will not take money out of hospitals and schools in order to fund an event that is three times the cost [which] was estimated and budgeted for last year. In terms of where we go to from here, the Games will not proceed in Victoria in 2026.”

Commonwealth Games Australia chief executive Craig Phillips said the first he heard of the $6 billion figure was during an early-morning phone call on Tuesday, adding that the cost overruns were a “gross exaggeration”.

“We’ll be doing all we can to make sure the numbers produced today by the Victorian government are not taken on face value,” he said, adding he was not sure who was responsible for those cost estimates.

“I can only assume it’s within government or Treasury,” he said. “The premier did note today the involvement of some consultants advising them. [I’m] not sure who that is.

“Beyond this, the Victorian government ignored recommendations to move events to purpose-built stadiums in Melbourne, and remained wedded to temporary expensive venues in regional Victoria.”

Commonwealth Games Australia chief executive Craig Phillips speaks to reporters in Melbourne.Credit: AAP

When asked why several events – or the entire Games – weren’t shifted to Melbourne, Andrews said those alternatives were canvassed.

“We have looked at every conceivable option. All of them are far in excess of the $2.6 billion that’s been budgeted, so all of them represent more cost than there is benefit,” he said.

“There are a whole range of competition-grade facilities that are here [in Melbourne]. A fair few of those are fairly busy, though. [And] then every hotel room in the city would be pretty much taken up by those who are part of the Games, not those who are coming here to watch the Games.”

The premier refused to say how much he thought it would cost to terminate Victoria’s hosting agreement. But he insisted representatives of the state government would meet Commonwealth Games officials in London later on Tuesday with the goal of achieving “the very best deal for taxpayers”.

Opposition Leader John Pesutto labelled Tuesday’s announcement a “massive humiliation for Victoria”.

“This decision is a betrayal of regional Victoria and confirms that Victoria is broke and Labor simply cannot manage major projects without huge cost blowout,” he said in a statement.

“The cancellation of the Commonwealth Games is hugely damaging to Victoria’s reputation as a global events leader.”

Victoria’s net debt is expected to grow from about $135.4 billion next year to $171 billion by 2026-27. This year’s state budget papers did not include any additional funding or timelines for the Games.

Victoria has previously requested a 50-50 funding split between the state and federal governments for the Games.

There was speculation last month that the state had asked the federal government if it could funnel some of Victoria’s share of the $2 billion social housing fund into Games infrastructure. Both governments later ruled this out.

Andrews said negotiations with the Commonwealth had “nothing to do” with Tuesday’s decision.

“Our ask was 50-50, but not 50-50 at any price,” he said.

Ballarat’s Eureka Stadium was to be refurbished.Credit: Eddie Jim

Deputy Premier Jacinta Allan, the minister responsible for the Games, confirmed there would be a $2 billion support package for the regional communities affected by the announcement.

“Each and every one of the community sporting infrastructure projects that we had been in detailed planning, design and conversations with councils and local communities [for] ... each one of those sporting infrastructure facilities will be going ahead,” she said.

Ballarat mayor Des Hudson said he was confident the package would mean a 5000-seat upgrade to Eureka Stadium, as well as revamped mountain bike trails, would go ahead as planned. The regional city had been preparing to host athletics, boxing and mounting biking.

Acting Victorian Greens leader Ellen Sandell described the cancellation as a “bit of a shemozzle”.

“The Victorian Labor government has wasted too much time and money on these Games, when it could have instead been investing in solutions to the housing crisis, like a big build of public and affordable housing,” she said.

Prime Minister Anthony Albanese declined to weigh into the debate on Tuesday.

“That’s a decision made by the Victorian government,” he said. “Australia has a fine record of hosting events.”

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