18th club, whose next?

[Vlad59]

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.
Peter Badel, Brent Read and Michael Carayannis




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.”

Legend. Thanks mate

 

[BuffaloRules]

I am happy with the government investment into PNG. This payoff to the clubs is gross though. The NRL are very lucky this has support from both sides of politics or they would be copping a smashing from one of the papers. $60mil gift of taxpayer money into rich clubs for zero reason other than appeasement. My club, Raiders, the CDRL reported a profit over $17mil 2022-23 ffs. $60mil that should have gone to PNG or other causes.

I agree it’s not a good look …. Also when you consider they are still several years away from playing their first game in the competition and not one dollar has been spent in PNG yet …

 

[titoelcolombiano]

The info about PNG everyone wanted to know:

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.

Hopefully when the bid is announced they provide a bit of info about the strategy they have to make it self sufficient.

 

[titoelcolombiano]

It's not uncommon with clubs. The NRL side doesn't generate it, but they still have tens of millions in assets behind the scenes. Given the NRL completely fund the clubs something like 25% over the cap its ridiculous to put their hands out for tax payer money.

Albo wanted this team, he came to the NRL asking for it. It's Vlandys' job to get the best outcome for the game and if there wasn't a sweetener, the clubs would rightfully shoot the PNG idea down. Other than hopefully playing talent, the only thing PNG offer the league is shitloads of Govt cash

 

[titoelcolombiano]

I agree it’s not a good look …. Also when you consider they are still several years away from playing their first game in the competition and not one dollar has been spent in PNG yet …

Phil Gould (I think it was) a while back said the significant investment in PNG pathways had already begun with a view to this team coming in

 

[Scootsie]

Fiji would more than match PNG in terms of being both a nursery For developing talent and a strategic political partner for Australia. In fact, the Chinese have made more political moves on Fiji than they have on PNG so pouring money into PNG bid rather than one from Fiji makes less sense. The only thing I could think stopping the NRL pushing more into Fiji is that Rugby Union is their no.1 code, but League is still huge over there. Also, NRL clubs are doing nicely picking the eyes out of Fiji playing ranks. There are way more Fijians doing well in the NRL than there are PNG players.

 

[Centy Coast]

Fiji would more than match PNG in terms of being both a nursery For developing talent and a strategic political partner for Australia. In fact, the Chinese have made more political moves on Fiji than they have on PNG so pouring money into PNG bid rather than one from Fiji makes less sense. The only thing I could think stopping the NRL pushing more into Fiji is that Rugby Union is their no.1 code, but League is still huge over there. Also, NRL clubs are doing nicely picking the eyes out of Fiji playing ranks. There are way more Fijians doing well in the NRL than there are PNG players.

If you were an NRL player deciding between PNG or Fiji ?, lol.
Fiji mainland sux but the islands are great.

 

[BuffaloRules]

Fiji would more than match PNG in terms of being both a nursery For developing talent and a strategic political partner for Australia. In fact, the Chinese have made more political moves on Fiji than they have on PNG so pouring money into PNG bid rather than one from Fiji makes less sense. The only thing I could think stopping the NRL pushing more into Fiji is that Rugby Union is their no.1 code, but League is still huge over there. Also, NRL clubs are doing nicely picking the eyes out of Fiji playing ranks. There are way more Fijians doing well in the NRL than there are PNG players.

PNG is a lot closer to Australia than Fiji … and US Bombers have to fly over it from the RAAF bases in Northern Australia on their way to bomb mainland China after they invade Taiwan …they don’t want Chinese bases on PNG trying to shoot them down on the way ….

Come to think of it.. Australia mightnt want Chinese bases a bees dick from Darwin and Townsville either

 

[Wb1234]

PNG is a lot closer to Australia than Fiji … and US Bombers have to fly over it from the RAAF bases in Northern Australia on their way to bomb mainland China after they invade Taiwan …they don’t want Chinese bases on PNG trying to shoot them down on the way ….

Come to think of it.. Australia mightnt want Chinese bases a bees dick from Darwin and Townsville either

Good points

plus pine gap which is one of the most important us overseas bases isn’t far from png either

 

[Gobsmacked]

Fiji would more than match PNG in terms of being both a nursery For developing talent and a strategic political partner for Australia. In fact, the Chinese have made more political moves on Fiji than they have on PNG so pouring money into PNG bid rather than one from Fiji makes less sense. The only thing I could think stopping the NRL pushing more into Fiji is that Rugby Union is their no.1 code, but League is still huge over there. Also, NRL clubs are doing nicely picking the eyes out of Fiji playing ranks. There are way more Fijians doing well in the NRL than there are PNG players.

Not to mention that they could actually attract players to live there.
More commercially viable too, hotel and airline deals would be a certainty.

If the same money from government was on fiji, there would be no bids. It would be fiji hands down.

 

[Vlad59]

Not to mention that they could actually attract players to live there.
More commercially viable too, hotel and airline deals would be a certainty.

If the same money from government was on fiji, there would be no bids. It would be fiji hands down.

I take your point but PNG has a population ten times that of Fiji. To put some perspective around this though, the albanese government is looking at 600 million dollars over ten years for a project involving the set up of a nrl team for a strategic partner in the region. The arrangement is clearly more , though, than about a team. It’s about the relationship between governments and appears to involve societal improvement goals. It sounds like a lot of money until you consider it is throwing 250 million dollars at a stadium precinct in Hobart which is generally regarded as unnecessary and the money is over about five years. If it proves nothing else, it demonstrates just how little a billion dollars means anymore.

 

[MugaB]

Not to mention that they could actually attract players to live there.
More commercially viable too, hotel and airline deals would be a certainty.

If the same money from government was on fiji, there would be no bids. It would be fiji hands down.

Why not both?

 

[titoelcolombiano]

Fiji would more than match PNG in terms of being both a nursery For developing talent and a strategic political partner for Australia. In fact, the Chinese have made more political moves on Fiji than they have on PNG so pouring money into PNG bid rather than one from Fiji makes less sense. The only thing I could think stopping the NRL pushing more into Fiji is that Rugby Union is their no.1 code, but League is still huge over there. Also, NRL clubs are doing nicely picking the eyes out of Fiji playing ranks. There are way more Fijians doing well in the NRL than there are PNG players.

Completely agree about Fiji being a better NRL nursery. I think in terms of relations with the Aus Govt, Fiji got given the Super Rugby team.

 

[Matt_CBY]

Yes Fiji Drua already are partially funded by the PacificAus Sports Program.

 

[Mother Nature's Son]

Other than hopefully playing talent, the only thing PNG offer the league is shitloads of Govt cash

PNG also offer another country, population estimated to be upwards of 15m, playing in the wealthiest sports league in the southern hemisphere. Strategically this is a big deal.
Look at the map, once Western Oz and PNG are admitted Rugby League will cover the complete arc from Perth around and down to New Zealand, possibly in the near future, even the south island of NZ. This is a great look for attracting sponsors and adding prestige to the game.

 

[Vlad59]

PNG also offer another country, population estimated to be upwards of 15m, playing in the wealthiest sports league in the southern hemisphere. Strategically this is a big deal.
Look at the map, once Western Oz and PNG are admitted Rugby League will cover the complete arc from Perth around and down to New Zealand, possibly in the near future, even the south island of NZ. This is a great look for attracting sponsors and adding prestige to the game.

In the alternative now that the fumblers are putting a team in Tassie they can complete their arc of influence by claiming Antarctica

 

[Mother Nature's Son]

To add to the point @Vlad59, plenty of third world countries play soccer, play it very well and add to the prestige of any tournament they are involved in. Why can`t PNG do that for the NRL.

 

[Vlad59]

To add to the point @Vlad59, plenty of third world countries play soccer, play it very well and add to the prestige of any tournament they are involved in. Why can`t PNG do that for the NRL.

Oh I agree. Whatever the condition of png now you’d have to think broadening sporting ties and building opportunities for locals to play top level sport combined with government community programs would be a good thing there. We’d be stupid to knock back the opportunity to use rugby league as a vehicle to deliver that. And broadening our sphere of influence by another 15 million willing participants is something our competitors can only dream of.

 

[titoelcolombiano]

To add to the point @Vlad59, plenty of third world countries play soccer, play it very well and add to the prestige of any tournament they are involved in. Why can`t PNG do that for the NRL.

PNG and the other Pacific nations add a lot of colour, passion and flair to the international game. Sort of what Latin American nations are to Soccer.

Watching the way Tongan, Samoan and PNG fans support their national team, plus the pre game cultural rituals brings something a little extra than an NRL fixture can

 

[Gobsmacked]

I take your point but PNG has a population ten times that of Fiji. To put some perspective around this though, the albanese government is looking at 600 million dollars over ten years for a project involving the set up of a nrl team for a strategic partner in the region. The arrangement is clearly more , though, than about a team. It’s about the relationship between governments and appears to involve societal improvement goals. It sounds like a lot of money until you consider it is throwing 250 million dollars at a stadium precinct in Hobart which is generally regarded as unnecessary and the money is over about five years. If it proves nothing else, it demonstrates just how little a billion dollars means anymore.

I agree with most of what you said but firstly nobody knows what PNG population is, the estimates vary wildly mostly because they lack the basic infrastructure to gauge that. Plenty of that population is projections on highland tribes almost completely cut from modern society and even city to city travel isn't connected by decent infrastructure.
The population of Port Moresby is around 400k by estimates and if the rest of their population won't have access to there, it is not much good.

A billion dollars isn't f all these days.
If we don't pour enough money into PNG to bring it into 2024 then after the 10 years of government spending the team will be destined for a rapid decline and eventual relocation.

Fiji actually could sustain a team without government funding.