By Adrian Proszenko and Adam Pengilly
The NRL has officially moved on from the Western Bears bid team, dashing consortium boss Peter Cumins’ hopes of reviving the failed negotiations.
The proposal spectacularly unravelled over a decision not to offer a license fee, at a time when head office was seeking a figure of about $20 million. The NRL also felt blindsided by the decision to include Sydney Kings part-owner Paul Smith and former NRL executive Paul Kind in the ownership group.
Cumins told this masthead on Wednesday that he still held out hope of returning to the negotiating table, a stance he reiterated again publicly on Thursday. However, officials at Rugby League Central have already moved on.
Speaking for the first time about the issue, NRL CEO Andrew Abdo said on Thursday: “The Commission has made it very clear that expansion has to have a strong business case – that goes for prospective regions and individual bidders.
“We will keep working through the process to ensure we can present the clubs with the most compelling options to expand the game before any final decisions are made by the Commission.”
The NRL felt they had been lowballed by the bid, given the strong financial position of the 17 existing franchises. A recent Brand Finance report valued the Brisbane Broncos at $124 million, while any Perth team would also benefit from holding the intellectual property rights, exclusivity of geography, NRL funding well above the salary cap and the benefit of 116 years of history.
The NRL will forge on with plans for a Perth-based team regardless and is now dealing direct with the Western Australian Government. The development could result in the NRL considering other expressions of interest or owning the team itself, potentially with a view to selling it off in the future.
Regardless, head office has reassured the North Sydney Bears that they will be included in the venture in some form, a move that will revive the foundation club’s name and heritage.
It’s a bitter blow for the Perth consortium, which held a series of meetings with executives they’d handpicked to run the club in Sydney on Monday, ready to trigger conversations with prospective coaches and player agents.
But they were shocked when Abdo rang Cumins to inform him the bid wouldn’t be accepted as the NRL’s 18th team in 2027.
On Wednesday, Cash Converters supremo Cumins defended the submission and claimed it was an “excellent bid”. He told this masthead: “Disappointed would be an understatement, and we’ve spent a lot of money for nothing.
NRL bosses Andrew Abdo and Peter V’landys.Credit: Nick Moir
“The frustration from our point of view is there has never been a licence fee paid by any club in the NRL, including the Dolphins. The Dolphins have been going for 75 years with $100 million worth of real estate and they’ve got all the facilities they need.
“We’re a start-up in an AFL state, so our start-up costs are massive. There’s a $16 million burn before you even kick a football. We’re bringing new eyeballs to the game to help with negotiating broadcast rights, new sponsorship dollars because we’re not competing with east coast sponsors.
“None of it commercially made any sense [to offer a substantial licence fee], which is why we elected not to.”
The North Sydney Bears remained tight-lipped in case they were still bound by a non-disclosure agreement.
“We still very much want to be part of expansion and are continuing to work with the NRL in regards to what that looks like,” said North Sydney Bears CEO Gareth Holmes.
It’s not all over for the Bears name returning to big time rugby league.Credit: Steven Siewert
Western Australian Premier Roger Cook said he had been in contact with V’landys and denied suggestions the state’s hopes for an NRL licence were over.
“No, I had a text exchange with Peter V’landys yesterday – we continue to discuss aspects of the bid process,” Cook said.
“Obviously, the bids went in – I think ours was the strongest – but we need to address some of the issues the board had in relation to that bid ...
“He’s keen to talk to us about the bid itself, how it would sit in Western Australia’s landscape, how it will obviously be a successful part of the competition.
“We understand that the NRL have a range of concerns that they want to work through. This is part of the negotiation process, it was entirely anticipated and I very much look forward to playing our role to support the WA bid.”
Papua New Guinea is all but guaranteed to be one of the NRL’s new franchises after a $600 million funding commitment from Prime Minister Anthony Albanese’s government, but most focus will be on Perth as the NRL tries to capitalise on the game’s popularity across the Nullarbor.
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