NRL clubs are on collision course with the ARL Commission over expansion grants

NRL clubs hold a powerful lever in a looming showdown with the ARL Commission over plans for them to share in a $60 million licence fee for Papua New Guinea to enter the league.

ARLC chairman Peter V'landys. Picture: Supplied by North Qld Cowboys

NRL clubs are on a collision course with the ARL Commission over plans for them to share in a $60 million licence fee for Papua New Guinea to enter the league in 2028 – and they have a powerful lever in their back pocket.

Leading club bosses believe $60m is nowhere near enough and want an additional $2m a year from 2027 – on top of their current club grant – in return for green-lighting expansion to 20 teams.

It is understood the clubs have been told by the NRL that any decision on future grants will be contingent on the next broadcasting deal, which is due to come into effect from 2028.

The clubs have a powerful lever to pull as they prepare for showdown talks. Crucially, all 17 of the clubs are off contract at the end of the season because the NRL has been unable to strike a deal on fresh licensing agreements after talks became bogged down in the expansion debate and financial terms for the existing clubs.

It means the vast majority of the existing clubs hold a significant ace up their sleeve, leaving them with the ability to split and potentially form their own competition.

While that would be a last resort, furtive discussions have been held and it gives the existing clubs huge sway as they brace for showdown talks with the NRL in coming weeks.

ARLC chairman Peter V’landys. Picture: Supplied by North Qld Cowboys

Talk of dissension in the ranks has simmered for months. The talks are already 12 months behind schedule after the clubs and the NRL were unable to reach agreement last year, prompting them to roll over the deal for 12 months. At the heart of the existing tension are plans to add new teams to the competition.

While a formal announcement is a month or so away, the expectation is that the Western Bears will be added in 2027 before PNG joins as the 19th team in 2028.

The NRL will then look to add a 20th team and the south island of New Zealand is the preferred destination.

The PNG bid has the $600m backing of the federal government, with at least $60m of that funding to be directed towards the existing clubs in the form of a one-off payment.

Sources in clubland insist they want at least $4m in a one-off payment – $68m in total – and then an additional $2m in their yearly grant.

Over the five years from 2027, when WA is expected to enter the competition, that amounts to an additional $170m directed towards clubs. Throw in the $68m one-off payment and it amounts to nearly $250m over a five-year period.

The clubs believe it is the least they deserve given they will be diluting their share in the game – the existing 17 clubs are all members of the ARL Commission.

ARL Commission chair Peter V’landys and his fellow commissioners are expected to step up talks over expansion in coming weeks given they are now in possession of the documents from the interested parties.

“I can’t comment specifically about the licence fee because we don’t have anything at this stage locked in,” V’landys said.

“The Commission is going through the process. Every proposal has to be analysed and a business case developed for the clubs to look at.”

Originally published as NRL clubs are on collision course with the ARL Commission over expansion grants