Victoria Government to pay $380 million in compensation for Commonwealth Games cancellation

August 19, 2023

Nigel Benton

Finance / Government / Sport /

The Victorian Government has agreed to pay $380 million to Commonwealth Games bodies in compensation after cancelling the 2026 event.

Victorian Premier Daniel Andrews made the surprise announcement last month that the state would not host the Games across regional cities as planned due to concerns they would far exceed initial cost expectations.

Following the announcement, mediation was launched between the state of Victoria, The Commonwealth Games Federation (CGF), Commonwealth Games Federation Partnerships (CGFP) and Commonwealth Games Australia (CGA) with lawyers for the Victorian Government travelling to London last month to negotiate what the cost would be for terminating the contract.

Following confidential “good faith” discussions, it has been reported that the Victoria Government has agreed to pay the three parties a total of $380 million.

A statement released this morning advises “all parties engaged respectfully and made appropriate concessions in order to reach an agreement” adding that “the settlement finalises all matters between the parties”.

The statement went on to advise that “the terms of the settlement will otherwise remain confidential.”

Premier Andrews cited potential costs of $7 billion - beyond an initial projected budget of $2.6 billion - when relinquishing its hosting rights for the 2026 Games.

However, this figure is being questioned with suggestions that many unrelated costs were lumped in to the event's costs.

Image: Victorian Premier Daniel Andrews.

About the author

Nigel Benton

Co-founder/Publisher, Australasian Leisure Management

Born in the English county of Dorset, Nigel Benton is the co-founder and Publisher of Australasian Leisure Management, Australia, New Zealand and the Asia-Pacific’s only magazine for professionals in all areas of the leisure industry and the www.ausleisure.com.au website - the go to news resource for industry leaders and professionals.

With a long-term commitment to communicating all that is best about the leisure industry (aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues) his career has been defined by an ability to develop and implement industry communications.

Starting his career working in heritage visitor attractions and then adventure travel in Africa and the Middle East, an interest in writing about his experiences led to his change of career into magazine journalism and publishing.

In addition to publishing, Nigel speaks on marketing communications at a range of industry events.

He was made a Life Member of the World Leisure and Recreation Association in 2006 and is a Fellow of the Royal Geographical Society (London).

In 2020, he launched the new Asian Leisure Business website.

As of October 2024, he was inducted into the Australian Fitness Awards Roll of Honour at the 2024 AUSactive National Awards.

Among a range of published works and features, his comments on a Blog (blogspot) from 2007 to 2011, when this website went live in its current form, may be interesting to reflect back on.

His philosophy on life is to be kind to all and to indulge those that you love.

His passions include family, Newcastle United and motorcycles (especially British ones) as well, until February 2025 when she left us, caring a little pug named Stella.

Click here to connect with him via LinkedIn.