Albanese and Palaszczuk strike $7bn funding deal for Brisbane Olympic Games

The Gabba redevelopment has a price tag of $2.7bn.

Funding for the Brisbane Olympic Games has been settled with a $7 billion deal struck between the state and federal governments.

Prime Minister Anthony Albanese is visiting Brisbane today to sign the deal with Premier Annastacia Palaszczuk.

Central to the agreement is a plan to rebuild the Gabba, which will now cost $2.7 billion, almost three times the original amount touted to update the stadium.

The new 17,000-seat “Brisbane Live” entertainment arena over Roma Street Station has also been given the go-ahead with a total cost of $2.5 billion.

The remaining money will be spent revamping existing venues and the construction of some smaller ones.

The Albanese government had originally shied away from the deal struck by the former Coalition government to go halves on the costs but will now contribute $3.4 billion out of the $7 billion total.

To put things into perspective, the federal government committed just $150 million to the 2000 Sydney Olympics.

“The 2032 Olympics will be the largest event that’s ever been held in Queensland,” Albanese said.

“The Australian government has worked to secure infrastructure projects that will have a long-term and transformational impact on Queensland as we count down to 2032.”

Federal Sport Minister Anika Wells said the Games would create a lasting legacy, calling it “the greatest celebration of sport in Australian history”.

“The Olympic and Paralympic Games will change lives and leave an unrivalled legacy for Queensland,” she said.

Promises of legacy are an occurring theme from host cities, with the 2012 London Olympics hoping to boost participation in sport across the board.

But a review into the impact of hosting the London 2012 Olympic Games found that hopes of inspiring people to get off the couch and into sport were unfounded.

“If the primary justification for hosting an Olympic Games is the potential impact on sport participation, then games are a bad investment,” the report found.

This trend is not isolated with analysis other host cities finding a similar pattern.