SYDNEY, Aug 19 — 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, reports Xinhua.
The financial settlement, unveiled by the state government on Saturday, 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 to axe plan to host the 2026 Commonwealth Games as costs will be 'too high' at over AU$6 billion (US$3.8 billion or RM17.6 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.
He 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' that runs for years and years.
"I am not for a moment downplaying the obvious impact of those who are closest to this sporting event. But when you lay it out like that, it is a very impactful decision, but it is not a very difficult decision to make," Andrews said.
— Bernama
