Victoria’s decision to cancel the Commonwealth Games has been settled with Games bodies at a cost of $380 million.

In a joint statement, the Commonwealth Games Federation (CGF), Commonwealth Games Federation Partnerships (CGFP), Commonwealth Games Australia and the Victoria government said they had settled all disputes regarding the dumping of the 2026 Games.

“The State of Victoria has agreed to pay the Commonwealth Games parties (CGF CGFP and CGA) AUD $380 million,” the parties said on Friday.

Premier Daniel Andrews announced his decision to can the Games in July, saying costs had blown out from $2.6 billion to potentially more than $7 billion and the state wasn’t prepared to foot the bill.

The decision came as a shock to local councils, which had been promised a multi-hub Games model that would bring economic benefits and sporting infrastructure to the regions.

The amount was agreed to after the parties referred their dispute to mediation by former NZ Judge Kit Toogood and former WA Supreme Court Chief Justice Wayne Martin.

The parties also agreed that the multi-hub regional model was more expensive to host than the traditional models.

Apart from the financial reparations, the terms of the settlement, and any other discussion that took place behind closed doors, will remain under wraps, with all parties legally bound to remain mum.

The to dump the Commonwealth Games is also being reviewed by the state’s auditor general, as well as state and federal parliamentary committees.

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