PNG confirmed as new NRL expansion team

Papua New Guinea’s entry into the NRL is confirmed – but uncertainty remains surrounding whether they will be the 18th or 19th team, while club bosses have expressed their concerns.

Club bosses have reiterated their fears that promised tax breaks for a team in Papua New Guinea will give the new side an unfair advantage as the NRL prepares to finally confirm their plans for expansion by the end of next week.

Barring any late setbacks, this masthead understands the historic expansion call is only days away and will involve Prime Ministers from both Australia and PNG.

It is understood the NRL and the federal government have finalised their landmark $600 million deal that has paved the way for PNG to join the premiership in 2028.

At the heart of that deal has been an agreement to commit $60 million to the existing clubs in the form of a license agreement, with the remaining $540 million to be split between financing the expansion team and growing the game in the Pacific.

It is understood an agreement has been reached to build a Centre of Excellence for the new team in PNG as well as living arrangements for players who relocate to the country.

The Papua New Guinea franchise will be announced in the coming days. Picture: Bradley Kanaris/Getty Images

Talks are still ongoing with the West Australian government over plans to expand to Perth as the NRL attempts to strike a funding deal to return to the state.

However, after two years of negotiations, the PNG deal is all but complete and an announcement is expected at the end of next week.

Club bosses were given an update on the state of play at a meeting on Wednesday where the prospect of tax breaks for the new side was put under the blowtorch by the club chief executives.

It is understood the club bosses aired concerns over the financial benefit of tax breaks for players who agree to move to PNG and play for the new side.

The fear among existing clubs is that the tax benefits will give the new side a powerful edge when it comes to recruiting players in preparation for their inaugural season.

It is understood the NRL pointed out it was a government call rather than policy from head office, in the same way that the Warriors benefit from lower tax rates in New Zealand.

NRL players could pocket millions in extra income if they play for team in Papua New Guinea … and it has club bosses nervous. Picture: Getty Images

The clubs stand to financially benefit from the new team. The $60 million license fee is set to be shared with the existing clubs over several years. The initial payment will be upwards of $1.5 million per club with further payments after that.

While it was thought PNG would join the competition as the 19th team, they are now firming to be team 18 given the club chiefs were told there was still plenty of work to do to get a deal done with the WA government over a new side in Perth.

The NRL’s clear preference was to go to Perth in 2027 and then PNG in 2028, but they have no choice but to go to PNG first given talks are progressing slowly with WA officials. ARL Commission chair Peter V’landys and NRL chief executive Andrew Abdo are working hard behind the scenes to make WA come to fruition.

It is expected the historic announcement of expansion to PNG will be made inside a government office in the Sydney CBD. The historic declaration will coincide with a PNG investment conference held in Sydney, which will start on Monday.

Multiple senior PNG ministers will fly to Sydney for the announcement, as will the PNG NRL bid board, led by chairman Wapu Sonk.

NRL bosses believe a team in PNG will have a seismic impact on the code given the passion in the country for rugby league.

PNG Prime Minister James Marape first moved a motion in parliament for an independent NRL bid team to be established, led by Sonk and PNG bid chief executive Andrew Hill.

Originally published as PNG confirmed as new NRL expansion team