Papua New Guinea will officially be granted a National Rugby League licence at an announcement in Sydney on Thursday. The move will give the only country that claims rugby league as its national sport its own team. This is what PNG’s inclusion into the competition means for the NRL.
Why is this happening?
As the gateway to Asia, PNG holds increasing geopolitical importance for Australia as China extends its influence in the Pacific. That’s why the Australian government has committed $600 million over 10 years towards the expansion venture (the PNG government is expected to commit 400 million kina, which is approximately $A154 million). For the NRL, it’s an important step towards its ambition of eventually expanding to a 20-team competition.
When will PNG enter the competition?
In 2028. It’s unclear whether PNG will be the NRL’s 18th or 19th team, given there is a desire to add another side as early as 2027. The NRL remains in negotiations for a Perth-based franchise, which are continuing directly with the WA government after a consortium bid was rejected.
What are the details of the PNG bid?
Given the official announcement hasn’t yet been made, and due to the long lead time before entering the competition, there will be no major details revealed on Thursday about the club’s coach, player targets, colours, logo or name. One option is for the new club to be called the PNG Hunters, the name given to the team that has been playing in the Queensland Cup competition since 2014. Former Bulldogs CEO Andrew Hill will be the inaugural chief executive.
PNG is about to be handed an NRL licence.
Where will the team play and be based?
When the bid was first floated, some league officials pushed for the franchise to be at least partly based in North Queensland, such as Cairns, to minimise the logistical challenges. However, the plan now is for the club to based, and to host home games, at Port Moresby. A compound will be built for the players and their families to live in, providing a safe environment with access to amenities such as schools.
PNG product Justin Olam enjoys celebrity status in the Pacific nation.Credit: Getty
How will the Hunters attract staff and players?
The club will provide a pathway to first grade for talented locals, but attracting the NRL stars required to be competitive will be a challenge. According to Oxford Economics’ Global Cities Index, Port Moresby is the fourth-most dangerous city in the world to live.
As a sweetener to sign with PNG, players and staff will be granted tax-free status. That will allow a marquee signing on a $1.2 million deal to save up to $550,000 per annum.
What has been the reaction of the existing clubs?
The arrival of PNG is expected to bring more money into the game, and the existing clubs have demanded their share. Part of the $600 million paid by the Australian government will go to the ARL Commission in the form of a licence fee, which will be distributed to the 17 established clubs.
It hasn’t placated all of them, however. Several club chief executives have expressed concerns that PNG’s tax-free status will result in a distortion of the salary cap, hailed as the game’s great equaliser of playing talent.
“One of the reasons the competition is strong and healthy is the operation of the salary cap over a 25-year period,” South Sydney CEO Blake Solly said.
“Anything that distorts that is a concern to the clubs … and when you talk about zero-tax rates, that’s a big advantage.
“No club in the competition wants PNG to come into the competition and be whipping boys, we want them to be competitive. The Dolphins have added value since they entered the competition, they have been competitive since day one, but we just need to understand exactly what the game will do to ensure that happens and any impact it has on us as clubs.”
What is PNG doing to prepare for its entry into the NRL?
Despite competing in the Queensland Cup competition since 2014 – and winning the 2017 premiership – the PNG Hunters are yet to produce a single NRL player. There is a significant focus on local development, via a pathways program modelled on the successful Penrith Panthers system. Former NRL assistant coach Joey Grima is overseeing a program that includes 720 male and female participants. In October, the Junior Kumuls came within minutes of a famous victory against the Australian Schoolboys, who scored late to secure a 22-all draw.
What does PNG’s inclusion mean for the NRL scheduling?
One option for the NRL, once a new team is added, is to split the competition into conferences. It’s a system employed by American sports and could result in more games being played between traditional or local rivals. More teams also could prompt head office to consider reducing the number of fixtures so teams only play each other once during the regular season.
What are some of the challenges that PNG’s entry will have for the NRL?
Most of the NRL’s income comes from broadcast revenue, but it’s unlikely PNG’s entry will result in a big uplift in viewership. There are also concerns that even with the tax-free incentive, that the game’s elite players will baulk at relocating to compound life. While the Australian government’s investment will prop up the franchise for a decade, it’s unclear whether it will be viable and self-sufficient afterwards.