Australia's Victoria state has decided to withdraw as the host of the 2026 Commonwealth Games due to a significant increase in projected costs. Victoria Premier Daniel Andrews stated that his government had agreed to host the multi-sports event last year but emphasized that they were not willing to proceed at any cost. Originally budgeted at 2.6 billion Australian dollars ($1.8 billion) to be held in five regional cities, recent estimates now indicate the potential cost could reach as high as 7 billion Australian dollars ($4.8 billion).
During a news conference, Premier Andrews expressed that the exorbitant price tag of AU$6-AU$7 billion for a 12-day sporting event did not represent value for money and lacked adequate benefits to justify such expenses.
The Commonwealth Games Federation (CGF) responded to the decision, stating that it was seeking advice on its options. The CGF attributed the cost escalation mainly to the regional, multi-city host model and the Victoria government's changes in venue plans and the inclusion of more sports. The CGF expressed disappointment in the short notice provided by the government and the lack of a joint discussion to find potential solutions.
The 2026 Games were scheduled for March 17-29 and were set to take place in the regional centers of Geelong, Bendigo, Ballarat, Gippsland, and Shepparton. The state government had promoted this multi-city model as an innovative approach, with the five regional centers hosting 20 sports and nine fully-integrated Para sports, showcasing the diversity and love of sports in Victoria.
Craig Phillips, the chief executive of Commonwealth Games Australia, criticized the government's decision, calling it a "comprehensive let down" as it deviated from the concept they had originally pitched to the organizers. He claimed that the stated cost overrun was exaggerated and not reflective of the operational costs presented earlier.
Notably, this is the second time issues have arisen with hosting the Commonwealth Games, with Birmingham stepping in to host the 2022 Games after Durban, South Africa withdrew.
Victoria state had previously hosted the 2006 Commonwealth Games in Melbourne, and the most recent edition in Australia took place on the Gold Coast, Queensland state, in 2018. The Gold Coast was part of the southeast Queensland bid that was awarded the rights to host the 2032 Olympics in 2021.
In response to Victoria's decision, Andrew Liveris, president of the Brisbane 2032 organizing committee, highlighted the differences in the business models between the Commonwealth Games and the Olympics in terms of event delivery, infrastructure usage, and commercial revenue. He emphasized that the 2032 Olympics had strong backing from federal, state, and local governments, and support from the International Olympic Committee, which contributed to efficient event planning and lasting legacies.
Since its inception as the British Empire Games in 1930 in Hamilton, Canada, the Commonwealth Games have evolved and now include participation from 54 members of the Commonwealth network, along with 17 overseas territories and island states. Over the years, various countries, including England, Australia, New Zealand, Wales, Jamaica, Scotland, Malaysia, and India, have successfully hosted the Games on a rotating basis every four years.