Glasgow has been warned that the cost of hosting the 2026 Commonwealth Games could spiral out of control even if the city strikes a deal to host a “cheap” event.
Experts have said I that cost overruns are common at international sporting events, while the desired economic stimulus for host cities and countries rarely materialises.
Scotland’s largest city is widely expected to host the next Commonwealth Games after the Australian state of Victoria announced its withdrawal last year amid concerns about massive cost increases.
There has been speculation that an announcement is imminent, but insiders have said I that no final agreement has been reached as talks between the Scottish authorities and the Games organisers are ongoing.
Commonwealth Games Scotland (CGS) has proposed a scaled-down and smaller Games in the city with a budget of just £130-150 million, promising that it would “not require any significant public funding”.
The Commonwealth Games Federation (CGF) is desperately searching for a willing host and has pledged to contribute £100 million, with the rest of the bill to be covered by tickets, sponsorship and broadcasts.
Glasgow officials believe Commonwealth Games funding is an opportunity to showcase the city for next to nothing and perhaps even make some money for the cash-strapped council. CGS has predicted that the Games could generate between £100 million and £200 million in revenue.
Glasgow hosted a major match in 2014 at a cost of £576 million. New stadiums were built, an athletes’ village was converted into affordable housing and a spectacular opening ceremony at Hampden was remembered for its giant, dancing Tunnock teacakes.
The hope is that Glasgow will have all the facilities needed for a far more cost-effective format this time around. Instead of the 20 different sports featured at the 2022 Games in Birmingham, organisers are looking to host just 10 to 13 events in 2026.
However, Dr. Johan Rewilak, a sports economics expert at the University of South Carolina, warned that there is a growing body of scientific work showing that cost overruns and overly optimistic estimates of economic benefits are common at “major” sporting events.
“Glasgow may have to spend more than they think,” he said I“You may need to add or upgrade some things, even if you don’t need to build anything brand new. Security costs can quickly add up.”
“Most scientific publications conclude that hosting a major sporting event does not bring about an economic boost.”
Dr Steve Georgakis, senior lecturer in sports science at the University of Sydney, said: “It’s naive to think it won’t cost them money. Commonwealth Games usually don’t even get off the ground at the end.”
Max Caller, head of a crisis team at Birmingham City Council – which was effectively declared bankrupt last year – said I that the decision to host the Games in 2022 was a mistake.
“It was an amazing and successful event that brought a lot of prestige to the place. But was it the right thing to do? No. I wish they hadn’t done it.”
The cost of the event in Birmingham was £778 million, of which the city contributed £184 million and the UK government the rest. According to UK government figures, the 2022 Games contributed £1.2 billion to the UK economy.
But Mr Caller said the event was a “huge distraction” and took up all of the council’s attention when it should have been focusing solely on the looming financial crisis.
He warned: “The cost estimates for these events are always speculative and difficult to handle. The problem is that if you want to make such events successful, the whole local authority has to be fully focused on getting it right.”
Glasgow City Council will have to make significant savings over the next three years to plug the £107 million black hole in its budget. The city authority plans to cut 450 teaching jobs and 150 health and social care jobs.
But Professor Gayle McPherson, head of the Culture, Sport and Events Research Centre at the University of West of Scotland, said the plan to hold the Games “on a smaller scale and more sustainably” was realistic.
As the athletes’ village built for 2014 in east Glasgow has been sold as part of the urban regeneration programme, a smaller number of participants are expected to be accommodated in the city’s hotels and university accommodation.
“There is no need for spectacular opening and closing ceremonies,” said Prof. McPherson I“The stadiums are in place. The choice of sports will be based on what we brought with us as a legacy from 2014.”
She added: “No public funds need to be used. It is a model that could enable smaller nations to host in the future.”
Susan Egelstaff, a former Scottish badminton medalist, said I She was “divided” about the idea of Glasgow hosting the event in 2026.
“The organizers of the games urgently need someone to save them,” said the sports journalist.
“My cynicism comes from the question of whether it is worth it if it does not create new housing, new facilities, new infrastructure and no legacy.
“Either you keep the costs so low that you make it cheap and it’s not very good, or you put more costs than originally stated to try to make certain parts of the event better.”
Dr. Georgakis agreed. The scientist warned that the “cheap model” could backfire.
He said: “The problem is that if you make them too cheap, there is no interest anymore. The television networks want the spectacle, they want the best athletes, they want all the events.”
He added: “There is an anti-Commonwealth Games sentiment among participating countries around the world. They just don’t have the appeal of the Olympics. So the small model is not going to appeal to anyone. It could be the end of the Games.”
A Commonwealth Games Scotland spokesman said the organisation continued to have “constructive discussions” about its “innovative concept” for the 2026 Games.
“It is important to note that our exciting and sustainable proposal does not rely on public funding, with the budget based on the £100 million provided by the CGF. We will update stakeholders, athletes and fans as soon as possible.”
