Australia's Victoria state will pay A$380 million ($243 million) to Commonwealth Games organisers, Victoria Premier Daniel Andrews said on Saturday, after it withdrew as 2026 event host citing a projected cost blowout.
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 from a budgeted A$2.6 billion.
The decision has raised the possibility that the Games may not take place for the first time since being cancelled due to the Second World War.
Also Read: 2026 Victoria CWG: Have Commonwealth Games run its course?
In a joint statement issued by Andrews on Saturday, the Commonwealth Games Federation, Commonwealth Games Federation Partnerships, Commonwealth Games Australia and Victoria said they had "settled all their disputes regarding the cancellation of the multi-hub regional Victoria 2026 Commonwealth Games".
"The State of Victoria has agreed to pay the Commonwealth Games parties ... AUD $380 million," the statement said.
"The parties also agreed that the multi-hub regional model was more expensive to host than the traditional models."
The payout comes after another blow was dealt to the long-running event when Canada's Alberta province earlier this month withdrew its support for a bid for the 2030 Games.
($1 = 1.5620 Australian dollars)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Prajwal Revanna's father in custody for alleged kidnapping and sexual abuse
May 4, 2024 7:53 PM
Delhi, Indore, Surat and Banswara — why these are the most challenging domains for Congress internally
May 4, 2024 1:53 PM
Congress nominee from Puri Lok Sabha seat withdraws, citing no funds from party
May 4, 2024 12:00 PM
Lok Sabha Polls '24 | Rahul Gandhi in Rae Bareli, why not Amethi
May 4, 2024 9:43 AM