Australia's Victoria pulled out of hosting the 2026 Commonwealth Games on Tuesday after costs ballooned, leaving organisers confounded and scrambling to find a new venue.
What went wrong
The Victorian government in a statement said the initial estimate of AUD $2 billion (USD $1.36 billion) to host the Games was revised to AUD $7 billion. Victorian Premier Daniel Andrews said the cost of hosting the event had increased significantly, and he was not willing to divert funds from other government programs to cover the difference.
"When the Commonwealth Games needed a host city to step in at the last minute, we were willing to help - but not at any price. And not without a big lasting benefit for regional Victoria," Mr Andrews said. "It's now clear: more than $6 billion for a 12-day sporting event is just too high. It's more than twice the estimated economic benefit the Games would bring our state."
Mr Andrews announced that the funds that were originally earmarked for the Commonwealth Games would be redirected to a regional package that includes upgrading sports facilities and building more social and affordable housing.
What does this mean for the Commonwealth Games
The inaugural Commonwealth Games, then known as the British Empire Games, were held in Hamilton, Ontario in Canada in 1930, and have successively run every four years since. The Games have only been canceled once previously following the outbreak of the Second World War.
Shortly after Victoria's withdrawal, New South Wales - which hosted the 2000 Olympic Games - declined to host the 2026 Commonwealth Games, citing financial constraints. While the Lord Mayor of Perth has expressed interest, all Australian state premiers have quickly ruled out the possibility of hosting the Games.
"Here's how it should work - we tell the (Commonwealth Games Federation) how much we will pay. We tell them 'here are our venues' you make YOUR games fit around what we have," Lord Mayor of Perth Basil Zempilas said.
It is uncertain whether a new host city will be found in time, but the Games have a history of finding willing and able cities to host at short notice. A case in point is the 2022 Games.
Two cities initially submitted bids to host the games: Durban, South Africa, and Edmonton, Canada. Durban won the rights in 2015 as Edmonton withdrew its bid citing funds cruntch.
Despite being awarded the Games, Durban, in 2017, was stripped of the rights to host after failing to meet the promises made in its bid. Then came the British government proposing Birmingham take on the mantle of hosting. The UK government contributed more than 560 million pounds and the local council coughed up another 190 million pounds to ensure the Games were held on British soil.
Subsequently, the 2022 Games in Birmingham was a record-breaking event, with 72 nations participating and over 5,054 athletes competing in 280 events across 20 sports.
The Commonwealth Games Federation, although did not go into details, insisted that it remains committed to finding a new host.
"We are taking advice on the options available to us and remain committed to finding a solution for the Games in 2026 that is in the best interest of our athletes and the wider Commonwealth Sport Movement," it said.
