EY put together the 2026 Commonwealth Games business case in six weeks
Ernst & Young was forced to navigate strict confidentiality and rely on ‘desktop research’ to put together costings for the failed global sporting event.
The Commonwealth Games business case that was described by former Victorian premier Daniel Andrews as “hardly the greatest piece of work” was subject to a six-week deadline, strict confidentiality and relied on “desktop research”.
Ernst & Young partners Dean Yates and Leigh Walker appeared before the inquiry into the axed 2026 sporting event on Tuesday with Dale Wood from DHW Ludus and Michelle Morris and Tom Sloane from MI Associates.
Mr Yates said the state government sought out EY in December 2021 and the contract was under strict confidentiality.
“The highly confidential nature of this engagement meant that no fieldwork, such as formal inspection of the potential venues for example, could be undertaken by EY, DHW Ludus and MI Associates,” he said.
“Nor could any consultation take place with any potential suppliers, partners, or other departments. The scope that we were working against was very tightly defined by the department, particularly the confidentiality aspect of it, (and) basically led to a situation where desktop research was all that we could do in the time frame.”
The committee heard that the initial costings were to be viewed as “an early stage estimate”.
Mr Yates said the firm remained confident that the output was the best EY could do under the circumstances.
The committee asked him what could be done differently if the conditions to undergo the work were not as strict.
“We would have spoken to a whole bunch of stakeholders and added to every information set. People like transport operators, security operators, sporting bodies, local governments,” he said.
Ms Walker said EY flagged the benefits and risks in its report and that the costings required “further validation”.
“So it was for government to decide what they wanted to do with that information we presented to them,” she said.
Earlier this year, Mr Andrews conceded the business case for the global sporting event was flawed. “It’s hardly the greatest piece of work ever done, that’s very clear,” he said in August.
“Some things are foreseeable and some things aren’t.”
EY was not involved in the second business case which estimated the cost to host the Games across five different regional Victoria locations had increased to between $6bn and $7bn.
Nationals MP and committee member Melina Bath put to the EY partners that by taking the contract they were “professionally blindfolded”.
“Mr Yates, in Ernst & Young accepting this contract, you were really professionally blindfolded by the Victorian government, in what I’m calling the pinata of the Commonwealth Games,” she said.
Athletics Australia president Jane Flemming also gave evidence. The former Olympic track and field athlete said the Games’ cancellation impacted the state’s reputation, ability to attract elite athletes, opportunities for financial recovery, commercial opportunities and disrupted the return of the four-year Games cycle.
“None of these impacts are going to be just confined to Victoria. These are Australia-wide impacts, they will carry forward all the way to Brisbane (in 2032),” she said.
“And with the reports in the media … that the Gold Coast has now pulled out of potentially hosting (the Commonwealth Games), the opportunity of a home Games in 2026 or 2027 appears almost certainly lost.”