Australia: Victoria State to pay USD 243 million for pulling out as Commonwealth Games host

Victoria: Australia’s Victoria state has agreed to pay the Commonwealth Games parties AUD 380 million (USD 243 million) after it withdrew as 2026 event host citing a projected cost blowout, informed the Victoria premier Daniel Andrews on Saturday.

Victoria in July pulled out of hosting the quadrennial multi-sport event, which was to have been held in four regional hubs, with Andrews saying costs could have ballooned to more than A$7 billion (approximately $4.5 billion) from a budgeted A$2.6 billion (approximately $1.6 billion).
In a joint statement by Victoria’s Premier said, The Commonwealth Games Federation (CGF), Commonwealth Games Federation Partnerships (CGFP), Commonwealth Games Australia (CGA), and the State of Victoria have settled all their disputes regarding the cancellation of the multi-hub regional Victoria 2026 Commonwealth Games.

In July 2023 the Victorian Government announced its decision to withdraw from hosting the 2026 Games.
Following that decision, the affected parties have been involved in confidential good-faith negotiations.
The parties subsequently agreed to refer the dispute to Mediation and appointed former New Zealand Judge, the Honourable Kit Toogood KC and the former Chief Justice of the WA Supreme Court, the Honourable Wayne Martin AC KC as joint mediators.