The 2026 Commonwealth Games are in jeopardy after the Australian state of Victoria announced its withdrawal as the host due to significant budget increases. The Commonwealth Games Federation (CGF) struggled to find a host before Victoria volunteered in April 2022.
Victorian Premier Daniel Andrews stated that the projected cost for hosting the event had tripled, making it unfeasible for the state to bear. The estimated cost of the 12-day tournament, originally estimated at A$2.6 billion, had now exceeded A$6 billion. Andrews emphasized that the new figure far surpassed the estimated economic benefit that the games would bring to Victoria.
The cancellation of the Commonwealth Games is unprecedented, as the event has only been called off during World War II. The CGF expressed disappointment at the decision and emphasized its commitment to finding a solution.
While the Victorian government will proceed with the promised stadium upgrades, the funds saved from not hosting the games will be allocated to housing and tourism initiatives.
The sudden decision by Victoria blindsided the CGF, which was given only eight hours’ notice and no opportunity to discuss possible solutions. The CGF highlighted that the estimated cost of A$6 billion was double the figure provided at a board meeting last month, attributing the increase to Victoria’s chosen regional delivery model and the government’s decisions regarding sports inclusion and venue plans.
The withdrawal of Victoria as the host has been met with criticism and concerns about the state’s reputation as a global events leader. The chief executive of Commonwealth Games Australia dismissed the cited cost blowout as a “gross exaggeration” and expressed efforts to find another Australian host for the 2026 games.
Despite Australia’s history of successfully hosting the Commonwealth Games, all states have ruled out stepping in to host the event. The search for a viable host has become challenging in recent years, as the originally designated city of Durban in South Africa was stripped of hosting rights for the 2022 games due to financial difficulties and missed deadlines. Birmingham eventually took over as the host.