Victoria’s global sport status ‘jeopardised’

A bitterly disappointed Commonwealth Games chief has blasted the Andrews government’s move to cancel the 2026 event.

Commonwealth Games Australia chief executive officer Craig Phillips said the Andrews government’s cancellation of the 2026 Games was “beyond disappointing” and would jeopardise Melbourne and Victoria’s standing as a sporting capital of the world.

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

“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).

“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.

“We thank the dedicated staff at the Organising Committee and the Office for the Commonwealth Games for their effort, acknowledging that today will be a tough time for those who have worked so hard.

“We also welcome the announced commitment to regional housing, a critical legacy component of the Games wholeheartedly supported and encouraged from the outset by CGA.”

Games cost ‘blown out to $7bn’

Earlier on Tuesday, Mr Andrews said the projected $2 billion cost for the regional-based Games had escalated to as much as $7 billion, which he said would not benefit of Victorian communities.

“Last year when the Commonwealth Games authorities approached us and needed someone to step in to host the 2026 Commonwealth Games, as a state we were happy to help out but of course not at any price and only if there was lasting benefit for Victorian communities,” Mr Andrews told reporters.

“What’s become clear is that the cost of hosting these games in 2026 is not the $2.6 billion which was budgeted and allocated – the vast, vast majority of which has not been spent – it is not $2.6 billion, it is in fact at least $6 billion and could be as high as $7 billion and I cannot stand here and say to you that I have any confidence that even that $7 billion number would appropriately and adequately fund these games.”

An artist’s view of what Mars Stadium, in Ballarat, was due to look like for the 2026 Commonwealth Games. Picture: Supplied

He said refused to “take money out of hospitals and schools in order to fund an event that is three times the cost estimated and budgeted for last year” and confirmed he would not call on federal support to fund the 12-day event.

The allocated funds would be redirected to a $2 billion regional package to funnel into sporting grounds, facilities, tourism and social and affordable housing Mr Andrews announced.

The Games were planned to be spread across Geelong, Bendigo, Ballarat, Gippsland and Shepparton in March 2026, and were criticised for not being centred around the city. Local mayors had objected to the infrastructure required to host the Games in the regional centres.

Commonwealth Games staff were called in for an urgent meeting on Tuesday morning, where they were told of the decision to cancel the event.

Mr Andrews confirmed he had notified the appropriate bodies of the decision, and refused to speculate on how much it would cost the state to terminate the host agreement.

“I’m not going to speak on that,” he said. “Little cost has been spent. As I said from the outset, all of that will be brought to look at the appropriate time and fully accounted for but I’m not going to negotiate with the Commonwealth Games authorities via the media in Melbourne, when I’ve got a team of people doing exactly that in London. That is the appropriate way to go.”

Mr Andrews was adamant the government had pulled the pin before large costs were spent, saying the decision had been made during a “small window” before major contracts were signed.

“You have this really important pretty small window where you’ve got – not quite tenders but very close to it – but no major contracts have been signed and then you have got to make a choice,” he said.

“Do you push on and deliver this at any cost, taking money out of hospitals, schools, roads, all manner of different things to pay for it? Or do you make the decision we’ve announced today?

“The reason we are not proceeding is because when all the work has been done – not the estimates, the actual work, the market soundings and all the other work, the cost of this is at least $6 billion and potentially substantially more than that. I simply will not spend that on a 12 day sporting event.”

Mr Andrews rejected a suggestion the Games be moved from the regions to existing facilities in Melbourne, saying all other options would have been in excess of the projected $2 billion cost.

He also refused to call on funds from the federal government to help pay for the Games.

“There is absolutely no way that I would even ask the federal government to fund half, or make any contribution, really, to a Commonwealth Games that costs between $6 billion and $7 billion. I wouldn’t make that request,” he said.

“If there is money available out of Canberra then it went be spent on a $6 billion or $7 billion Commonwealth Games, it will be spent on hospitals and schools on road and rail and all manner of other things.”

He said he was not aware whether any other states would swoop in to host the Games.

After Mr Andrews’ announcement, former Australian Olympic Committee boss John Coates threw his support behind Sydney hosting the Commonwealth Games for the first time since 1938.

“There’s no question we’ve got the venues … and March would be a good time to host it,” he said.

“I’d love to see it come here …(in) 2026 it would coincide with the aerotropolis (opening). There’s the venues, the sports have the ability to organise it.

“It’d be great for Sydney’s reputation. We last hosted the games in 1938.”

‘Repeated warnings’

A high-ranking event industry official said the Victorian government had been repeatedly warned of a cost blow out by hosting the Commonwealth Games in regional areas.

“But the Victorian Government wouldn’t be told,” they said. “With the Games being hosted in so many different regional places, the cost was going to be five times the amount [of it being hosted solely in Melbourne].”

A case in point was the proposal of building a temporary velodrome in Bendigo when there is already an international velodrome at John Cain Arena in Melbourne.

“Event industry professionals always had eyebrows raised about why you would leave so many world class venues empty,” a source said. “They had all the infrastructure in and around Melbourne …”

“It was done to get votes for the election in regional Victoria, and so now, the actual cancelling is a smart political move, no one is fussed … but the sports will care …”