Every January, Melbourne glows. The Australian Open fills the city with sunshine, soundtracks, and sold-out sessions, reinforcing its claim as a global sporting capital. Yet beneath the forehands and fireworks sits a quieter, more uncomfortable reality: the tournament has become one of Victoria’s most expensive long-term public commitments — and one still only partially understood.
The state government insists the AO delivers clear economic returns. The scale, structure, and secrecy of the investment continue to invite scrutiny.
No Hosting Fee, Just a Billion-Dollar Backdrop
Unlike the Australian Grand Prix, which cost Victoria a AUD 102 million hosting fee in 2024 alone, Tennis Australia maintains there is no equivalent fee attached to staging the Australian Open. That claim is technically correct — but materially incomplete.
Since 2011, Victorian taxpayers have contributed more than AUD 1 billion to redeveloping Melbourne Park, ensuring it meets world-class standards and anchoring the tournament in Melbourne until at least 2046.
Central to that was a decade-long commitment to spend AUD 972 million on infrastructure upgrades, completed in 2021.
The pandemic only deepened the relationship. A further AUD 106 million government support package secured the Open for another 20 years, even as the full contractual details remained out of public view. Tennis Australia continues to argue that the event stands financially independent despite that backing.
“The AO stands on its own financially while delivering significant economic benefits to Victoria,” a Tennis Australia spokesperson said. “It is also our primary source of funding to support tennis and facilities nationwide.”
Investment That Keeps Rolling On
The spending has not stopped. The Melbourne and Olympic Parks Trust reported at least AUD 20 million in tennis-related upgrades during the 2024 financial year alone. Improvements ranged from upgrades to the John Cain Arena roof to new plunge pools and ice baths for players inside Rod Laver Arena.
Another AUD 45 million was spent last year to keep Melbourne Park at Grand Slam standard while expanding its ability to host events year-round. Today, the precinct stages more than 500 events annually, from concerts to rugby, football, basketball, and netball.
Tennis Australia remains the site’s largest tenant, paying AUD 68.7 million in rent and related expenses last year — a figure often cited as evidence of its contribution.
Economic Impact, With an Asterisk
According to Tennis Australia, the Open generated an “overall expenditure impact” of AUD 565.8 million last year, with forecasts suggesting that figure will exceed AUD 600 million this summer.
KPMG chief economist Brendan Rynne broadly supports the notion that the tournament delivers value, but he cautions against treating the headline numbers as gospel. With Melbourne residents accounting for 63 percent of spectators, he warns that some of the spending counted as economic benefit would likely have occurred locally regardless.
“There’s a risk of overstating the impact if you include spending that would have happened elsewhere in the city anyway,” Rynne said.
Still, he acknowledges benefits that resist simple accounting. The Open, he argues, cements Melbourne’s place alongside London, Paris, and New York as a global destination capable of staging major events.
“That perception matters,” he said. “It builds goodwill and confidence that flows beyond sport.”
Scrutiny Set to Return
That balance — between public investment, transparency, and long-term return — is set to face renewed examination.
Victoria’s Auditor-General will review state spending on major events in the 2026–27 financial year, bringing the Australian Open firmly back under the microscope.
The tennis will remain immaculate. The branding will sparkle. But as the bills continue to rise, so will the questions — long after the last ball of January has been struck.
First source main storyline: https://repo.enc.edu/news/taxpayers-spent-more-than-a-billion-dollars-on-the-australian-open-is-it-worth-it/ by Eden Crosby