$600m deal rocks NRL as historic 19th club confirmed

A $600m deal has sent shockwaves around Australian rugby league with the NRL taking the biggest gamble the league has ever taken.

A $600m deal with the federal government has confirmed Papua New Guinea as the NRL’s 19th team.

News Corp first reported a deal between the NRL and Prime Minister Anthony Albanese’s government has been “agreed in principle”.

The deal will send shockwaves across Australian rugby league with controversial plans for a team to be based out of Port Moresby now set to go ahead.

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The NRL has petitioned for federal government funds for several years and now Australian Rugby League Commission (ARLC) supremo Peter V’landys has pulled it off.

In one of the league’s biggest ever gambles, the NRL is planning aggressive growth with an 18th team based in Australia set to enter the competition in 2027 before the PNG team makes history when it enters the competition in 2028.

Australian tax payers will be forking out the dollars needed for the NRL to base an expansion team in Post Moresby.

V’landys held discussions with Albanese in early May and the deal is now set to be rubber stamped with the fnding reported to be worth $600m over 10 years.

An announcement will reportedly happen prior to the annual Australian Prime Minister’s XIII game against Papua New Guinea on October 12.

Australian Prime Minister Anthony Albanese and PNG Prime Minister James Marape are both NRL fans. Picture: PMO

The Albanese Government hopes to ward of growing Chinese influence in the region through this act of “soft diplomacy”.

It was reported in May $300m of the $600m war chest will go towards pathways and programs in the Pacific region.

It has been rumoured that veteran coach Wayne Bennett is viewed as the ideal coach for the expansion team.

Bennett is signed with the Rabbitohs through to the end of the 2027 season and could potentially be available to lead the PNG team in 2028.

“Naturally, we would love to have Wayne Bennett involved with an 18th team,” V’landys said earlier this year.

“He is a genius and if he is available for the next expansion bid, absolutely we want him … Wayne shares our vision on expansion and he wants to be part of that vision absolutely.”

The aggressive plan has previously been slammed by rugby league commentators with serious concerns players will not consider moving overseas to the nation of 10 million people.

Jack De Belin with fans after Papua New Guinea v Cook Islands NRL game in Port Moresby. Picture: Scott Davis, NRL Imagery

In June it was reported rival NRL clubs were against the plans with suggestions clubs would demand a $170m package to support the PNG team’s entry.

NRL clubs could reportedly be paid $60 million between them, meaning each team would receive $3.5 million as a lump sum under terms being discussed by the league.

Club powerbrokers, however, are seeking an additional $2 million for five seasons form 2028, when the PNG franchise would likely enter the comp, on top of player payments.

Reports have also emerged prospective players who sign for the new franchise could be offered major financial incentives to join the 18th team.

Those include potential tax breaks, however rival club bosses are reportedly sceptical of that move.

“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 in May.

“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.”

The NRL is yet to announce which bid it will accept to give its 18th team license to, but reports have suggested the Western Bears, based out of Perth, are the preferred candidate.