“It is not $2.6 billion, it is in fact at least $6 billion and could be as high as $7 billion and I cannot stand here and say to you that I have any confidence that that even $7 billion number would appropriately and adequately fund these games” - Daniel Andrews, Premier of Victoria
A study by Oxford University found that all Olympics since 1960 had significant cost overruns. The average overrun was 172%; in other words for each £1 budgeted, £2.72 was spent. Was it therefore a surprise that costs for the 2026 Commonwealth games rose from Australian $2.6bn (two thousand six hundred million dollars) to £7bn? The upper figure being an overrun of 169%.
The Australian decision is even less surprising given the history of the 2022 Commonwealth Games. In February 2015 the Canadian City of Edmonton withdrew their bid citing affordability problems and a fall in oil prices: ‘at this time it would not be right to move forward with our bid when cuts are being made in our communities to programmes like education and health’ said the Bid Chairman.
Later that year Durban, South Africa was announced as the host. Then in March 2017, the Commonwealth Games Federation announced that Durban would have the hosting rights taken away, citing financial problems. ‘Everybody was very excited to see the Commonwealth Games staged in Durban, which was very well equipped to host the event, but once the economics started to play a role, it became difficult’ - Gideon Sam, president of the South African Sports Confederation and Olympic Committee
The 2022 Commonwealth Games were subsequently held in Birmingham UK. The official spending figure is given as £778 million. This is much lower than the $7bn ( equivalent to £3.6 billion) for the cancelled Australian event. Presumably this is because Birmingham was able to use existing infrastructure and facilities. A Government review found that the Birmingham Games provided £870m of benefits; providing a return on the taxpayer money invested.
Canada, South Africa and Australia are prosperous countries; yet none could afford to host the 2022 Games due to the cost. The Games have never been hosted in any of the African countries that make up 21 of the 56 Commonwealth membership.
Have the Commonwealth games become over extravagant? Are the non-sport related expectations of the event too high? The basic necessities required to run the games are relatively low cost; a sports field, a running track, sports hall, swimming pool and perhaps an indoor cycling track. A lot of the costs and risk arise from the expenditure on iconic architecture, transport infrastructure upgrades and one-off facilities such as athlete’s villages.
Maybe it is time to consider a pared down event? Perhaps with public audiences by television only in order to reduce stadium sizes. Indoor cycling might have to be hosted in an existing facility. If such an event could be financed largely through sponsorship and television rights many of the other Commonwealth member countries could put in a realistic and feasible hosting bid This would surely be more in line with the ethos of the Commonwealth?
Links
Edmonton withdraw Commonwealth Games bid - Sports Mole
Commonwealth Games: Durban stripped of right to hold 2022 Games over financial problems - ABC News
Birmingham 2022 contributed at least £870 million to UK economy, survey reveals (insidethegames.biz)
Statements detail spending of Birmingham 2022 Commonwealth Games funding (insidethegames.biz)