Inside Andrews’ $380m compo deal for the Games

afr.com:

Commonwealth Games officials initially sought a “multibillion-dollar” payout from Victoria’s Andrews government for its cancellation of the 2026 event, and independent mediators were crucial in containing it to a$380 million deal that went down to the wire.

Premier Daniel Andrews revealed the payout on Saturday, nearly five weeks after making the shock announcement that his government would abandon the Games, claiming the costs had blown out from $2.6 billion to more than $6 billion.

Sources familiar with the negotiations but gagged from speaking publicly told The Australian Financial Review the government was “deeply relieved” over the deal after the parties were “galaxies apart” initially. They also confirmed that the deal was still being finalised late into Friday night and came close to collapsing.

The Victorian government is estimated to have spent more than $250 million in preparing for the Games, thus taking the total figure for not holding the event to about $630 million.

But questions continue to emerge over the debacle, which will be investigated by Victorian auditor-general Andrew Greaves. It will also be scrutinised by a parliamentary inquiry after the opposition secured crossbench support.

The government facedfresh claims on Wednesday that former Victorian sports minister Martin Pakula told his federal counterpart that no money was needed from Canberra for the Games, despite the business case assuming the federal government would provide up to half the costs.

Financial workings released on Saturday revealed the Andrews government was told when it signed up that the event might generate only 70¢ in economic benefits for every $1 invested.

A new one-page budget document also details the claimed cost blowouts,