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.
Nigel Benton is the co-founder and Publisher of Australasian Leisure Management, Australia and New Zealand’s only magazine for professionals in all areas of the leisure industry. Having established the magazine in 1997, shortly after his relocation to Australia, he has managed its readership rising to over 11,500 and its acceptance as the industry journal for professionals in aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues.
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.
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