$600m PNG expansion deal could be terminated amid ‘China clause’ revelations

There’s a large political shadow hanging over the NRL’s expansion announcement with Papua New Guinea, and it threatens to scupper the historic deal.

The NRL’s $600 million golden handshake with the Australian government over the new Papua New Guinea expansion team comes with a “China-related” clause which could see the federal government blow up the deal at any time.

It is understood that the historic 10-year commitment, announced on Thursday, can be immediately halted at any moment should PNG strike up a deal with China.

The clause revolves around security and policing in the region. While the clause enables the Australian government to back away from the deal, the NRL and PNG rugby league officials were confident there would be no issues given the 50-year relationship between the two countries. It would also mean PNG loses other aid that the government provides.

ARL Chairman Peter V’landys refused to confirm the details of the clause.

Papua New Guinea will formally be announced as part of an expanded NRL competition.

“We are very confident with the agreement and confident it will go its 10 years,” V’landys said. “Like any other agreement, there are rights to certain parties.

“I have no concern whatsoever. One of the clauses in the contract is that I need to keep it confidential so I better honour that so I don’t breach it on the first day.”

The NRL may be forced to terminate PNG team’s franchise if the Australian government removes its support under the terms of the agreement.

Under the 10-year deal, the Australian government will give $290 million to funding the NRL team while $250 million will help rugby league in the Pacific including Samoa, Tonga and Fiji.

The remaining $60 million will be split among the remaining 17 clubs.

A $200 million village will also be built for players and staff. Players and staff will also enjoy tax free benefits.

The Prime Ministers, Australia’s Anthony Albanese and PNG’s James Marape, stood side-by-side to announce the landmark commitment.

While neither would be drawn into the specifics of the arrangement they did highlight the importance of peace in the Pacific and the need for greater security in PNG.

“Australia and PNG are the nearest of neighbours and we are the truest of friends,” Albanese said. “United, of course, by a love of rugby league.

“What this is about isn’t just the elite level. This is about the grassroots level, it’s about economic development, it’s about our relationship between our peoples.

“And it provides, as sport often does, an opportunity for people to succeed not just in sport, but in life. The partnership will support young people in the Pacific, girls and boys, women and men, to play rugby league, with a focus on PNG, but also on Fiji, Tonga and Samoa.

“It will complement our existing health and education programs in the Pacific and create new opportunities for women and girls to get involved, as well.”

Australian PM Anthony Albanese (R) shakes hands with Papua New Guinea PM James Marape during the landmark announcement. Picture: David Gray/AFP

Marape described Albanese as his “brother”. He pointed to peace in the Pacific as a major reason for the go ahead of this team.

“It was strategic that we belong to one region,” Marape said. “The shared space is important. In a world that is conflicted all over. We want to preserve our pacific – safe and peaceful and good for all of us to live in.”

With PNG now confirmed, the NRL will push ahead with plans for a 20-team competition. V’landys said talks were positive with the WA government for the reintroduction of the Bears and he was hopeful of a resolution in the next two to three weeks.

READ HOW THE PNG NRL ANNOUNCEMENT UNFOLDED BELOW

Originally published as $600m PNG expansion deal could be terminated amid ‘China clause’ revelations