Commonwealth Games - the road to a sustainable Future?

"@ChrisJenkins, congratulations on your election as President of the Commonwealth Games Federation (CGF). You assume the leadership at yet another challenging time in the history of the Games. At the end of 2023 Australia's states withdrew from hosting the 2026 Commonwealth Games and no 'bail-out' was forthcoming from other nations. The Commonwealth Games is not short of challenges not all of their own making, yet recent changes in the external environment also offer opportunities. Every commentator outlines the problem, yet offers few solutions to the complex challenge you and colleagues must address. In this article I endeavour to outline the special context you face at the start of your Presidency and offer a positive option or framework for consideration to secure a sustainable future for the great Games..."

"We have been here before...

The state of Victoria (Australia) pulled out of hosting the 2026 Games in July 2023. The Gold Coast, the Queensland city that had hosted the 2018 Games, initially insisted it would be able to host another modified Games in 2026, but itself pulled out in December 2023. Australia's federal and state governments repeatedly ruled out supporting the event. The Gold Coast ran an expanded and expensive Games in 2018.

Earlier, the bidding process for the 2022 Games reopened after Durban was unable to fulfil financial obligations. Durban had been awarded the Games when it became the sole bidder after Edmonton pulled out. In 2017, the Commonwealth Games Federation received expressions of interest to host the 2022 Commonwealth Games from Australia, Canada, Malaysia and the United Kingdom and were confident a host would be found. Despite the short timeframes and all the COVID pressures the Games, hosted by Birmingham (supported by the UK Government), came in under budget and England's West Midlands region are now distributing community grants of ￡70 million from the underspend. The early reported studies outlined positive and substantial economic multipliers - a point made by the West Midlands Mayor to the CGF General Assembly in 2023. Just 16 months after the success of Birmingham 2022, organisers are again facing pointed questions about the event’s future.

Victoria, as Australia's sport-obsessed state initially imitated the Gold Coast approach. Organisers had originally estimated the Victorian Games - hosted across cities including Geelong, Bendigo, and Ballarat as well as Melbourne - would cost A$2.6bn (￡1.4bn), but the government said it had ballooned to more than A$6bn (>￡3bn) - 8 times Birmingham's budget.

Surely, by now it is clear the current, the host-city or even state (rather than nation) model does not work.

2011 - I suggested in an article that "Glasgow may well recover meaning for the Games in 4 years time by staging a successful, well-organised and commercially viable event”. the The 2010 Games in India in 2010 were mired in allegations of corruption and financial mismanagement. A parliamentary report in India on those Games also found “complete management failure” within the organisation and said the Indian government “nearly defaulted” on staging the event.

Glasgow came close. Scotland enjoyed its most successful Commonwealth Games performance on the field of play in 2014, while, still delivering a manageable deficit.

With a record number of medals - albeit supplemented by creatively assembled para-sport events and the return of Judo after a 12-year (3 Games) absence – around 50 Scots stood on a podium and returned with their medals to their communities to inspire future generations. Pure, dead brilliant!

In 2011 I received a defensive response from CGF officials to my rationale and argument that the Commonwealth Games faced several external threats and a real ‘tipping point’ in its 80 year history - caused by external factors and trends rather than the Games performance as an event. My argument found favour with the likes of the IOC, national governments and sports federations. ?I argued a new model was required for a new era and the nations of the Commonwealth should be engaged in its development. The Federation did commission a strategic review but Glasgow, in true fashion, picked up the ball before its publication and in 2014 gave a glimpse of a potentially successful and sustainable future.

CG2014 in Glasgow demonstrated that there is a real role for a new-age Commonwealth Games at a time of geo-political turmoil and uncertainty across the world. I suggested at the time (2011) that the Games “should be about uniting the nations of the Commonwealth behind some rich common purpose”. Perhaps the days of a sporting-only Commonwealth Games are in the past, and inter-national competition of this nature might be across other sectors of society. The focus on social equality, equity and culture, combined with the inclusion of more para-sport events than ever before gives real pointers to the future. The alliance with UNICEF at Glasgow was brave and innovative and provided these games with a social purpose far richer than any previous athletic event.

2024 - The Commonwealth Games Federation (CGF) and its nations must face reality as it is, not as it was or they would love it to be. The current ‘friendly games’ position, as the 'sports day' of the Commonwealth of Nations, is no longer relevant or sustainable on its own. The challenge is to re-invent and give the nations and athletes of the Commonwealth something of importance and lasting value. The gap in terms of athletic quality and brand potential between the Commonwealth Games and the Olympics as well as regional Games and World Championships is increasing every quadrennial.

One of the priorities the new President should address, as he assumes the leadership of Commonwealth Sport will be to develop a sport/business model that makes the Games economically sustainable, with a richer ourpose and value to enable a wider range of nations (rather than cities or regions) to bid for this quadrennial event.

The end of the Commonwealth Games would have serious consequences especially for sports and athletes from the likes of Wales, Scotland and Northern Ireland whose future international competition opportunities in the world of sport would largely rest with the United Kingdom. The UK sporting system is underpinned by not only the platform provided by the Commonwealth Games. but the funding and servicing targeted by Home Country Sports Councils and Institutes linked to CG outcomes. Other nations outside the UK might be less sympathetic to their fellow Commonwealth nations.

The new Tipping Point

The withdrawal of Victoria and Gold Coast as potential hosts is a result of the new reality, which is little different than posed to the CGF in 2011:

• The Games had been on a commercial knife-edge for years with few cities or states interested in bidding, and limited sponsorship support from non-state companies. This has been further exacerbated by the COVID pandemic and associated lock-downs as well as cost-of-living crises, recession and the increased costs of borrowing.
• The event had become a second tier championship producing inconsistent performances across many sports and events. There have been world records broken in major sports such as athletics and swimming. Leading athletes make discretionary decisions as to whether or not to compete as part of their increasingly intensive programmes of events. There are more competitions and commercial attractions for athletes and sports to consider and prioritise; the case to compete needs to be constantly made and re-made in each cycle.The Commonwealth Youth Games provides hope for sport in the Commonwealth.
• The Commonwealth Games cannot expect the same level of media coverage and profile as a Summer Olympic Games. The economic prize from media rights and commercial partnership will always be much lower. Glasgow was the last Games that the BBC covered so comprehensively, only agreed as part of the coverage for the London Olympics in 2012. The Commonwealth Games is still an important event with higher viewership in Australia than the Olympics. Whilst Birmingham had lower free-to-air BBC coverage than Glasgow it was more than Gold Coast. Changes reflect change in media consumption particularly, red button and online streaming (6 times more for Birmingham than Gold Coast). CGF research shows terrestrial still important but sadly more the older age groups. Commonwealth Games is also hugely important for the BBC with more sport pay per view. The Games fulfils requirements in Charters for Nations and Regions. In four years, the market will be different again.
• Government levels of debt, made worse by the COVID pandemic and financial crises has seen radical cutbacks in government investment in sport at national, state and local levels in both capital and revenue. This will continue into the future.
• Almost all the major nations in the Commonwealth are unable (individually) to provide the level of facilities required for the Games and such additional investment will surely rank way below priorities for the health, education, economic development and well-being of their populations.
• The emergence of a summer European Games and the closer alignment of Oceania nations with Asia will present competing events in the new growth economies.

Potential Solution - ESG based strategy, with a dose of EDI

Here is one option for Commonwealth Sport to consider...at least to get out of the box and hold a debate amongst themselves...

A sustainable Commonwealth Games must really differentiate itself from other multi-sport Games, not by imitating other multi-sport games (especially the Summer Olympics) or just being a bit different, but by delivering new value to the Commonwealth of Nations, its stakeholders and the world of sport. More, or even less of the same will not deliver this outcome.

In my recent book, The Game Changer, I give examples of organisations in business and sport that have positively changed the 'rules' of their sport or industry. Number 1 of the 5 features of 'The Game Changers' is having the courage to 'break the rules' by challenging existing paradigms and building a vision of success for the future, borne out of consideration of a number of divergent, external scenarios for the future. The context above provides the basis for this thinking.

The Commonwealth Games will always rely on the enthusiastic and host commitment of Australia, England, Canada, South Africa and India. The new model, and potentially the solution may emerge from considering a more fundamental change at the elevated level of the Commonwealth of Nations - sport and political leaders together crafting a vision of success for the Games - rather than Commonwealth Sport on its own.

I recently suggested the UK's Brexit from the EU provided an opportunity for even greater economic development by forging new alliances and trade deals with the nations of the Commonwealth rather than the complex states of Europe. In this way the Commonwealth Games would be a catalyst to the rejuvenation of the Commonwealth as a unifying force in a fragmenting world.

Nations, corporates and institutions are increasingly focusing their strategies on solutions that embrace improvements in the environment (climate), society and governance (ESG). This trinity may offer the Commonwealth and its Games a way ahead.

• Economy and Environment: reviewing the 'value added' by each sport may offer lower-cost solutions, albeit challenging expensive team or capital intensive sports. Utilising already excellent facilities in Commonwealth nations that have made the investment may avoid expansive bids with little hope of legacy. Creating clusters of sports with synergy may provide the opportunity to host simultaneous multi-sport games in a number of locations (as recently proposed by FIFA/UEFA in Soccer). Delivering a 'net zero' Games is a no brainer. Nations may also have to share costs more equitably to secure a viable future. It may mean delivering sports in clusters in different nations, even a the same time.
• Improving Societies: Paralympic sports were first in the Commonwealth Games as demonstration events in 1994. The first full medal events came in from Manchester 2002 onwards and event numbers have been expanded ever since. Glasgow delivered an integrated Games for athletes with a disability as well as their able-bodied teammates. Replicating Glasgow is a no-brainer focus and unique feature for future Games to drive real inclusion. The Commonwealth Youth Games provide a great platform to establish sport as a tool for life and social inclusion. This would be delivered through education at primary, secondary and tertiary levels alongside promotion of healthy lifestyles. Changing the world for better through financial/social inclusion and healthy lifestyles through engaging with major corporates in the Commonwealth is an opportunity worth developing. Follow the example of the Royal & Ancient Golf Club of St Andrews (governing body for Golf outside the USA) and their corporate partners.
• Exemplary Governance: a great area for the Commonwealth to drive innovation and leadership, not only in the quest to deliver EDI (equality, diversity and inclusion). Annual conferences across the Commonwealth that offer the opportunity to drive these agendas is surely part of a richer purpose as well as raising the standards of sporting institutions in the Commonwealth movement. In this way adding more tangible value than annual COP assemblies net carbon levels.

The current sport and business models for the Games are 'bust' and Commonwealth Sport should face up to this reality. Simply seeking \lower cost opportunities to attract host cities; ensuring all voices are heard and more effective engagement with all nations' will not deliver the change required for sustainability.

I am sure King Charles as head of the Commonwealth would support the development of the three-point agenda, bringing the nations together in a wider, more purposeful agenda where the Commonwealth Games would be centre stage as a force for good and change.

Alistair Gray

Alistair Gray, is a leading European strategic management consultant, specialising in business and sport. He advises a number of multi-national businesses as well as national, continental and international governing bodies of sport. In addition, he has led the boards of Scottish Hockey, British Basketball and British Swimming and is a non-executive director of a number of public companies, pension trustee boards and sports. He was the founding chair of the Scottish Institute of Sport and served on the board of the UK Sports Institute. He currently is a member of the faculties of the University of Strathclyde and Loughborough business schools and an honorary professor/lecturer at Liverpool and Stirling Universities.

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