Birmingham shells out $35m for rights to host CWG 2022

Birmingham shells out $35m for rights to host CWG 2022 - InsideSport

Birmingham city has shelled out £25m ($35 million) to earn the right to host the 2022 Commonwealth Games.

The figure was revealed during the ongoing Commonwealth Games Federation General Assembly in Gold Coast. This is nearly $14 million (£10m) more than what the original host city, Durban, had offered to spend after being awarded the Games in September 2015.

The South African city was stripped of the right to host the event in March last year by the Commonwealth Games Federation as it had failed to meet the deadlines to pay $14.7 million in instalments towards the right to host the Games.

As a result, CGF had to spend $2.5m in excess over revenue in the financial year ending 31st March 2017 after Durban failed to meet its financial commitments, leaving them with just $2.9m in bank reserves.

The games were subsequently awarded to the English city which has agreed to pay a hosting fee of $28m plus $7m grant for development work around the Commonwealth nations. The first instalment of $5.5m has immediately been paid after bagging the host rights in December last year.

The new host city fee will also apply to the cities awarded the 2026 and 2030 Commonwealth Games.

Darren Hall, COO of CGF has claimed that the choice of Birmingham for the 2022 Commonwealth Games has meant the CGF can look forward with more confidence and build a sustainable financial future.

CGF has also announced that it is planning to establish a war chest of up to $21m by 2026-2027 so that it can ensure its survival in a full quadrennial without a host city.

Kuala Lumpur in Malaysia is among the cities being touted as a potential bidder for the event in 2026, while Canada has also announced it wants to be awarded the centenary edition of the Games in 2030.