Compensation paid by the Victorian government over its decision to dump the 2026 Commonwealth Games could be used to offset the costs for another host.
Premier Daniel Andrews stunned the sporting world last week after he unceremoniously dumped the Games over a forecast cost blowout of up to $4.4 billion (US$2.94 billion), having initially budgeted $2.6 billion (US$1.73 billion) for the 12-day event.
Contract-break negotiations between the Commonwealth Games Federation and the Victorian government are ongoing after lawyers for Victoria returned from London without a deal over compensation for the cancellation.
But Commonwealth Games Australia chief executive Craig Phillips pointed to the possibility money recouped could go towards the costs for a stand-in host.
“It could be that some of that compensation is then used to offset cost of a future cost of a replacement in 2026,” Phillips said on July 28.
“A bit more certainty about what compensation looks like will help in terms of the discussions with future hosts.”
The search for the next host of the 2026 Games won’t start until settlement arrangements with Victoria end, Phillips said, but he didn’t rule out the possibility that it could come from within the country.
Commonwealth Games Australia representatives will travel to each state pitching Games’ value to other premiers and pointing to the $1.3 billion (US$0.87 billion) cost range spent by previous hosts.
“To be fair to the premiers in the other states probably reacting to a number of $6 to $7 billion (US$4 to $4.67 billion) which is eye-watering,” Phillips said.
“We believe if we can have a sensible conversation, there is a chance of it progressing.”
New South Wales Premier Chris Minns on July 28 pointed to his state’s budget pressures when asked about taking on the Games.
“The answer’s ‘no’,” he told reporters.
“The idea that we could take on more responsibilities in such a tight window wouldn’t be economically responsible.”
The possibility of Gold Coast hosting the Games again were dashed after Prime Minister Anthony Albanese said he wouldn’t stump up funding.
Commonwealth Games Australia representatives will hold discussions with its parent body on the deadline to find a new host in Trinidad and Tobago as the Youth Commonwealth Games begin on August 4.
Youth Games team general manager and former athlete Ellie Cole revealed some athletes had accessed counselling services following the Games’ cancellation.
“When plans change, it can come as quite a shock to the athletes and the strain that being a high-performance athlete has and not knowing if a performance may or may not go ahead can certainly take quite a personal toll on your plans as you prepare as an athlete,” Cole said.
The future of the Games may be up in the air but one thing is certain.
“Whether it’s here, or it’s overseas, there will be an Australian team going to a Commonwealth Games in 2026,” Phillips said.
