Cancelling the Commonwealth Games won't come cheaply – Victoria now faces the legal consequences
The cancellation of the 2026 Commonwealth Games by Victorian Premier Daniel Andrews took all stakeholders – Commonwealth Games officials, athletes, sports bodies and local government officials – by surprise.
- The cancellation of the 2026 Commonwealth Games by Victorian Premier Daniel Andrews took all stakeholders – Commonwealth Games officials, athletes, sports bodies and local government officials – by surprise.
- The Andrews administration will likely deal with the political fallout from not honouring its contract to host the games, but there may be legal and reputational damage ahead.
- The principal reason given for pulling out of the games was financial.
- In some senses, the Commonwealth Games could be said to be a victim of long COVID.
Other reasons behind the cancellation
- Behind the financial reasons for cancelling the games, there were a number of other factors in play.
- The revenues generated by the Commonwealth Games in terms of sponsorships, broadcasting, ticketing and sports tourism are a fraction of those generated during one of the other two mega-events.
- Some $2 billion will be directed to social and affordable housing and other infrastructure commitments in the regions.
A breach of contract and likely settlement
- In signing a contract, the Victorian government was saying it was willing and financially able to host the games.
- And the federation had the legitimate expectation the games would be delivered, as per the contract.
- It is very unlikely this matter will end up in court – it will almost certainly be settled through compensation to the federation for breach of contract.
- Commonwealth Games representatives are likely to question the government’s projections of cost blowouts and ask whether they had been exaggerated to provide cover for pulling out of the contract.
Reputational damage for the games themselves
- There will be some collateral reputational damage associated with this decision.
- The sports world moves on quickly and to be blunt the appeal of the Commonwealth Games is struggling to maintain the pace.
- The inaugural edition of the Commonwealth Games – then known as the British Empire Games – was held in Hamilton, Ontario, in August 1930.
- The legacy of Victoria’s aborted 2026 Commonwealth Games may well be that the 2030 centenary edition struggles even to find a host.