SYDNEY – Australia’s state of Victoria will pay AU$380 million (about US$243 million or RM1.13 billion) after the state decided to withdraw from hosting the 2026 Commonwealth Games, reported Xinhua.
The financial settlement, unveiled by the state government yesterday, was reached after negotiations among the Commonwealth Games Federation (CGF), Commonwealth Games Federation Partnerships (CGFP), Commonwealth Games Australia (CGA) and Victoria.
Victoria agreed to pay the bill to CGF, CGFP and CGA, while the parties agreed that the multi-hub regional model was more expensive to host than the traditional models.
In mid-July, the Victorian government announced the plan to axe its hosting the 2026 Commonwealth Games as costs will be “too high” at over AU$6 billion (US$3.8 billion).
The state government said in a statement on Saturday that all parties “made appropriate concessions: in order to reach the settlement. The terms of the settlement will remain confidential.
Speaking to the press, Victorian Premier Daniel Andrews said even with the multi-millionaire cost, the government would be saving billions of dollars and could close the matter.
Andrews said the settlement was the best option for the government, and contesting the break fee would have resulted in a lengthy court battle and a “lawyer’s picnic” for years.
“I’m not for a moment downplaying the obvious impact of those closest to this sporting event. But when you lay it out like that, it’s a very impactful decision, but it’s not a very difficult decision to make,” he said. – Bernama, August 19, 2023