The State of Victoria has agreed to pay AUS$380 million (US$244 million) after pulling out of hosting the 2026 Commonwealth Games.
The Australian state announced in July that it was to withdraw as host due to the cost of the event breaching estimates by around AUS$5 billion (US$3.2 billion).
State premier Daniel Andrews told media in Melbourne he was not prepared to spend up to AUS$7 billion (US$4.5 billion) on a “12-day sporting event”.
No replacement has yet been found, but a statement has now confirmed all issues following the decision to pull the plug have been resolved, with Victoria agreeing to pay a nine-figure sum.
‘The Commonwealth Games Federation (CGF), Commonwealth Games Federation Partnerships (CGFP), Commonwealth Games Australia (CGA) and the State of Victoria have settled all their disputes regarding the cancellation of the multi-hub regional Victoria 2026 Commonwealth Games,’ a statement read.
‘In July 2023 the Victorian government announced its decision to withdraw from hosting the 2026 Games.
‘Following that decision, the affected parties have been involved in confidential good faith negotiations.
‘The State of Victoria has agreed to pay the Commonwealth Games parties (CGF CGFP and CGA) AUS$380 million’
‘The parties also agreed that the multi-hub regional model was more expensive to host than the traditional models.
‘The settlement was supported by the mediators. The terms of the settlement will otherwise remain confidential. The settlement finalises all matters between the parties.’