PNG expansion bid set to gift $60 million Christmas bonus to NRL clubs
The expansion into Papua New Guinea hasn’t officially been announced, but part of the Federal Government’s $600m investment is already set to be gifted to NRL clubs by Christmas.
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ARL Commission boss Peter V’landys is set to deliver a $60 million Christmas bonus to NRL clubs in the biggest one-off financial reward in the code’s 116-year history.
This masthead can reveal the NRL’s 17 clubs will share in an unprecedented expansion bonanza as the Federal Government and the ARLC move a step closer to adding Papua New Guinea to the big league.
Australia’s National Security Committee of Cabinet has ratified a $600 million funding proposal – clearing the path for PNG to formally clinch an NRL licence within a month.
Under a historic Pacific agreement, the existing 17 NRL clubs will be given a $60 million sweetener – about $3.5m per franchise – as part of a landmark PNG licence fee that will be shared among the current teams.
Well-placed sources say Prime Minister Anthony Albanese and V’landys will shake hands on the PNG deal in mid-September in the lead up to the NRL finals.
That will be a preamble to the parties announcing the NRL’s next wave of expansion, with the Western Bears to enter the big league in 2027, followed by PNG 12 months later.
This masthead can reveal the ARLC is already receiving some funds from the Federal government, who have begun diverting money into the NRL’s coffers to prepare for the historic launch of PNG in 2028.
But the clubs will also be major benefactors of rugby league’s ambitious Pacific growth project.
Of the $600m proposal, the Federal government has agreed to an upfront licence fee of $60 million, the proceeds of which will be paid directly to the 17 clubs to assuage fears they could suffer financially from fresh expansion.
The code’s record $1.347 billion Collective Bargaining Agreement last season ensured annual club grants increased to around $18 million this year.
With the extra funds from the one-off PNG licence fee the 17 NRL clubs will receive a total of around $21.5 million each, an extraordinary surplus given the code’s salary cap this season is $12.5m.
Merry Christmas, NRL clubs.
Wests Tigers boss Shane Richardson, the former NRL strategy chief who first investigated expansion in 2015, said the $60m licence fee would be a huge financial coup for the clubs.
“The extra money would be invaluable,” he said.
“I’m not sure what the exact plan is at this stage, but if they are going to give $60 million to the clubs, yes, that’s fantastic.”
Albanese believes an 18th PNG franchise can have educational benefits for the region, bolstered by the use of ‘soft diplomacy’ via a government-financed sporting team to keep China at bay in the Pacific.
It is understood the estimated $600m investment is not solely for a new NRL team, but part of a wider social, economic and educational blueprint to strengthen a nation of 10 million where rugby league is the No. 1 sport.
Once the $60m is distributed to the clubs, that will leave $540m of government funding to be allocated to setting up – and sustaining – PNG as the NRL’s 19th team.
During high-powered negotiations, the NRL has been told $29m per year will be given to the football arm of the PNG franchise for a period of 10 years – a total of $290m.
The remaining $250 million will be allocated to social welfare and education programs in PNG.
The Federal government has made it clear to the NRL that the PNG investment is for a 10-year term only.
Once the deal expires in 2038, the Federal government will walk away from the PNG project and not provide another cent, confident the NRL’s 19th team will be self-sufficient after a decade’s existence.
In an exclusive interview with this masthead recently, Albanese stressed the Federal government’s funding would go beyond just a PNG football team.
“The aim would be for any government funding to be aimed at economic development in schools. It’s not just for the NRL team and to pay Alex Johnston (Souths winger) to play for PNG,” Albanese said.
“This is a game changer for the relationship with Papua New Guinea.
“We’re definitely behind the NRL bid and, importantly, Prime Minister (James) Murape in PNG is very much behind an NRL team.
“To have a PNG NRL team, we would need to get the pathway and infrastructure right.
“It’s an important part of economic development and getting young people engaged in PNG.
“This is not just about sport in itself, it’s building people-to-people relations and economic development for PNG, that’s the way the government sees it.
“I was in PNG in January and you see kids and adults all wearing State of Origin jumpers and jumpers of NRL clubs.
“The support there is fanatical.”
Richardson backed V’landys’ vision for a 20-team competition.
“We would love to see an expansion blueprint because there’s no doubt 20 teams could work,” Richardson said.
“People say we haven’t got the players, but we have the players if we have a bigger view of what the game is about.
“We are in a position now to become the dominant code in Australia and across the board.
“There is no doubt we can go to 20 teams, but let’s sit down now and look at the financial side of it.
“What are the dollars and cents of it all and what is television willing to pay for a 20-team league.”
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Originally published as PNG expansion bid set to gift $60 million Christmas bonus to NRL clubs
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