A team of lawyers have failed to reach agreement for compensation after Victoria Premier Daniel Andrews announced the State was withdrawing as 2026 Commonwealth Games hosts ©Getty Images

Australian lawyers acting for Victoria after the shock announcement by the State’s Premier Daniel Andrews to withdraw from hosting the 2026 Commonwealth Games have returned home from London without having agreed a compensation deal.

Andrews sent Leon Zwier to the British capital last week to break the news to the Commonwealth Games Federation (CGF) that they were pulling out of their contract to host the event and to negotiate a deal.

Zwier, a partner of Arnold Bloch Liebler, is one of Australia’s top lawyers whose clients have included the country’s cricket captain Steve Smith when he was banned for his involvement in a ball tampering scandal.

He was accompanied to London by Andrews’ departmental secretary Jeremi Moule, along with a team of lawyers from the Victorian Government’s Solicitors Office.

The group had hoped to sort out a quick deal with the CGF but flew back yesterday having failed to reach an agreement.

The CGF are reportedly asking for up to AUD$500 million (£262 million/$337 million/€303 million) to compensate them for the crisis that Andrews has plunged the organisation in.

Any money received is expected to be used to help a replacement city put on the Games in 2026.

Leading Australian lawyer Leon Zwier was sent to London to tell the Commonwealth Games Federation that Victoria was withdrawing as hosts for 2026 ©Arnold Bloch Liebler
Leading Australian lawyer Leon Zwier was sent to London to tell the Commonwealth Games Federation that Victoria was withdrawing as hosts for 2026 ©Arnold Bloch Liebler

It has also been reported that Commonwealth Games Australia is considering taking legal action against Victoria over the loss of an AUD$26 million (£13.6 million/$17.5 million/€15.7 million) contract.

SportFive, the CGF’s partners to help develop its brand, including finding commercial partners, may also act.

According to the Australian Financial Review, the Victorian Government has already spent AUD$250 million (£131 million/$168 million/€151 million) on preparing to stage the Commonwealth Games.

Budget papers revealed that the Government spent AUD$36 million (£22 million/$24 million/€21 million) in 2021-2022 and AUD$222 million (£116 million/$150 million/€134 million) the last financial year.

Anger continues to simmer over Andrews’ decision to withdraw from Victoria hosting the Commonwealth Games following his claim that the budget had risen substantially from the original figure of AUD$2.6 billion (£1.4 billion/$1.7 billion/€1.6 billion) and could reach as high as AUD$7 billion (£3.6 billion/$4.7 billion/€4.2 billion), although he has failed to explain how that number was reached.  

"Here we are, day six and we are still waiting for details of the costs of the Commonwealth Games debacle," Victoria Opposition Leader John Pesutto said.

"Victorians are entitled to know how much money has been wasted because of the humiliating cancellation of the Commonwealth Games."

Australia's Prime Minister Anthony Albanese, left, has faced criticism from opposition parties who claim he has not done enough following the announcement by Victoria Premier Daniel Andrews, right, that they were withdrawing as 2026 Commonwealth Games hosts ©Getty Images
Australia's Prime Minister Anthony Albanese, left, has faced criticism from opposition parties who claim he has not done enough following the announcement by Victoria Premier Daniel Andrews, right, that they were withdrawing as 2026 Commonwealth Games hosts ©Getty Images

Australia’s Prime Minister Anthony Albanese has also faced criticism over the decision and been urged to help find an alternative host city in the country.

"[He] needs to explore ways to stage the Commonwealth Games in Australia to restore the reputation that was damaged by Victoria’s snap decision to cancel them," acting Opposition Leader Susan Ley told the Australian Broadcasting Corporation’s Insiders today.

"I don’t accept that as our Prime Minister Anthony Albanese can step back and take no responsibility.

"I have a suggestion for all the athletes - don’t have your photo taken with any Labor MPs until this gets sorted.

"It’s being presented as a binary choice - it costs AUD$7 billion, or you don’t have it.

"How about looking at alternatives - other states, nations, stepping in?

"How about having the reasonable conversation with the Commonwealth Games Federation about how we can take responsibility?"