NRL expansion: Club bosses demand more from possible PNG 18th team

NRL club bosses have demanded a bigger slice of the pie in return for backing an 18th NRL team in Papua New Guinea, with the expansion issue set to come to a head in the next month.

Rugby league is the #1 sport in Papua New Guinea.

The NRL’s plan to expand into Papua New Guinea has hit a $170 million roadblock as the game’s existing clubs agitate for a greater slice of the pie in return for backing an 18th team.

This masthead reported earlier this week that the NRL and federal government were hopeful they would be in position to confirm PNG as the 18th team as early as July, as part of a $600 million deal designed to foster rugby league in the Pacific and fend off the threat of China.

That news prompted a flurry of text messages between the game’s existing club bosses as they sought to unify their stance on the 18th team and what they would expect in as a sweetener to back the bid.

It is understood the NRL and federal government have discussed paying the clubs as much as $60 million to be shared among them – each club would receive around $3.5 million in the form of a one-off payment.

It is believed the clubs preference is for an additional $2 million a season over and above player payments for at least five seasons from 2028, when the PNG is expected to enter the season.

In total, that would mean an extra $170 million in payments to the clubs in return for their support for a PNG franchise. The clubs raised the issue with NRL chief executive Andrew Abdo at a meeting prior to Magic Round and the matter is expected to heat up over the next month or so as an announcement on expansion edges closer.

ARLC Chairman Peter V'landys says he has spoken with the Australian government over a team in Papua New Guinea. Picture David Clark

ARL Commission chair Peter V’landys insisted no agreement had been struck with the federal government over PNG.

“There is no agreement at this stage,” V’landys said.

“It is certainly premature. It hasn’t gone to cabinet to start with and our board hasn’t signed off on it, so there’s no agreement.

“There were discussions held during Magic Round, but each party was due to come back, again, so there’s nothing concrete at this stage.

“I was surprised as to how this speculation started, because it certainly didn’t come from the NRL, put it that way.

“I won’t comment on confidential negotiations, because naturally I have to go to the members first with the details, which is the clubs.”

There have been suggestions players could be offered extra incentives to play for an 18th PNG franchise – including major tax breaks – given the security challenges that would accompany a move to PNG.

Papua New Guinea currently has the second highest crime rate of any country in the world and attracting players would be a major concern for any consortium hoping to field a competitive side.

Existing clubs have also privately raised concerns over players receiving tax breaks to move overseas.

V’landys and NRL CEO Andrew Abdo have led the charge on PNG. Picture: Justin Lloyd

“Some of the clubs may raise that but we were criticised heavily before that we should have given more incentives for the Dolphins and given them salary-cap exemptions,” V’landys said.

“Here it won’t cost them one cent. If they agree, we will be in a position to go to the clubs and show them what our plan is. We want to make sure there is sufficient time for consultation from our members.

“You have to give the clubs the opportunity to provide analysis, but I am confident that what the clubs will see, they will be happy.”

V’landys and Abdo have led the charge on PNG as the federal government looks to soft diplomacy to keep China at bay in the Pacific.

“I’ve spoken to the Prime Minister about the 18th team,” V’landys said.

“That’s the level we’re at now, we’re at the highest levels.

“The government is extremely keen because of national security there is no doubt about that.

“They have the right strategy in how to strengthen the relationship with Papua New Guinea. If you are part of the sporting competition and your sport will be throughout PNG, that will strengthen the relationship significantly.

“It’s a very smart plan by the government, no two ways about it. When you consider the government spends billions on submarines, this is peanuts by comparison.

“Soft diplomacy sometimes works better than anything else.”