Government sources believe it puts Australia in a strong position given how unpopular it would be for a future PNG government to risk being stripped of the team should it entertain advances by China.
The security aspect aside, the PNG NRL deal hasn’t been without hurdles. In May this year, the NRL was ready to walk away from negotiations after a perceived shifting of the goalposts from the government.
Among points of contention was a government suggestion that the cost of building a secure complex to house players, coaches and club officials and staff would have to come out of its $600 million, decade-long package.
“What the PM and I and [Minister for International Development and the Pacific] Pat Conroy agreed to wasn’t the final thing that came back to us,” V’landys said. “We had to sort it out once and for all because we were willing to walk away.”
V’landys went public with his warning, declaring it “D-Day” for the Australian government during a press conference outside the NRL-owned Gambaro Hotel in Brisbane on the eve of Magic Round, in which every match of the round is played in the Queensland capital.
The next day, at the same time the fans began piling into Suncorp Stadium for the first day of games, NRL and government officials locked themselves in a private room inside the iconic Brisbane venue for an at-times heated, hour-long negotiation. The NRL would get its way.
“One thing is, when you do a deal, you honour it,” V’landys said. “To be fair, Pat Conroy and the prime minister were always going to honour it. Some people in government might have wanted to negotiate a better deal for themselves but we said you can’t. The deal is the deal. This could be the prime minister’s greatest ever legacy for the safety of Australia”.
Under the 10-year deal, the Australian government will direct $290 million to funding the PNG NRL team itself while $250 million will go towards rugby league development in the Pacific. The remaining $60 million of government money will be paid directly to the NRL as a licence fee and split among the existing 17 clubs.
The funds to build what V’landys has dubbed “NRL Village” have been sourced from the PNG government. It has committed 100 million kina ($38 million) a year for the next four years to construct the built-for-rent facility that will be designed to provide its residents with everything they need within the compound.
For up to the first 10 years, the NRL will share control of the board with the PNG government, who will both appoint representatives.
The new team will be owned by a conglomerate of PNG superannuation funds. Players and staff won’t be taxed by the PNG government, which has introduced changes to its income tax laws as an incentive for players to join the team, nor by the Australian government.
To appreciate how much Albanese has invested, both financially and emotionally, into a project he pressed for personally, you only have to ask Queensland Rugby League chairman Bruce Hatcher.
Hatcher received a call from the prime minister, which at first he thought was a prank, in late 2022.
At the time, the Mackay Cutters had decided to forfeit their match against the PNG Hunters in Port Moresby in the second-tier Queensland Cup over health and safety fears. It was meant to be the Hunters’ first game back on home soil in more than two years after they were asked to base themselves out of Australia during the pandemic.
It was a significant moment for the rugby league-obsessed nation, whose leaders were less than impressed with the Cutters’ unwillingness to travel there.
According to a source familiar with the contents of the conversation between Albanese and Hatcher, the prime minister urged the state league chief to ensure the Mackay players boarded the flight to PNG, offering any services they needed to feel secure. The next day they were on a plane to Port Moresby.
Ensuring player safety in PNG is among myriad challenges facing the ambitious venture, as is the task of attracting talent, even with tax exemptions.
As it stands, games can’t be played in Port Moresby at night because the city’s public transport doesn’t operate at the hours required to transport people to and from the 15,000-capacity national stadium.
Tkatchenko, PNG’s Australian-born top diplomat, said the significance of the nation having a NRL team would be remarkable.
“Especially when [Papua New Guineans] will be able to see a home team, a Papua New Guinean team, play NRL teams, not only in Australia, but also here in Papua New Guinea,” he said.
“It will give a huge injection and boost to NRL. We have a population of around 12 million people and they’re all, as you know, NRL-mad.
“It will also boost up our junior rugby league. There are so many thousands of young men and women out there who would be dying to be an NRL star, or knowing that there is a pathway going forward to being in the NRL.”
The more than $750 million being invested by the respective governments will, however, go a long way towards mitigating concerns about an increasingly unstable broadcast market as the NRL prepares to kick off talks for a new television deal early next year.
“In 10 years, the game could triple its revenue,” V’landys said. “No one else has the opportunity to go to a market with ready-made fans. You don’t have to convert them – you have more than 10 million ready-made fans.
“This is the greatest thing that will ever happen to the NRL. In all my years as a sports administrator, I don’t think I’ve ever seen a greater opportunity for a sport like this"