NRL powerbroker’s plans to introduce a Papua New Guinea franchise have been halted due to a $170 million request, with existing clubs asking for financial incentive to back the bid.
That is according to
The Daily Telegraph, who are reporting initial plans between the NRL and the Australian government were to announce the 18th franchise in July.
They had originally brokered a $600 million deal that would bankroll the PNG franchise, whilst also serving as a way to strengthen international relations and reduce the threat China poses in the Pacific.
However, club bosses reportedly contacted the NRL asking what they would receive in return for backing the 18th team.
NRL clubs could reportedly be paid $60 million between them, meaning each team would receive $3.5 million as a lump sum under terms being discussed by the league.
Club powerbrokers, however, are seeking an additional $2 million for five seasons form 2028, when the PNG franchise would likely enter the comp, on top of player payments.
As it stands, ARLC commission Peter V’landys has made it clear no deal has been formally agreed on between the federal government regarding the fresh expansion bid.
“It is certainly premature. It hasn’t gone to cabinet to start with and our board hasn’t signed off on it, so there’s no agreement,” he told News Corp.
“There were discussions held during Magic Round, but each party was due to come back, again, so there’s nothing concrete at this stage.
“I was surprised as to how this speculation started, because it certainly didn’t come from the NRL, put it that way.”
Reports have also emerged prospective players who sign for the new franchise could be offered major financial incentives to join the 18th team.
Those include potential tax breaks, however rival club bosses are reportedly sceptical of that move.
“Some of the clubs may raise that but we were criticised heavily before that we should have given more incentives for the Dolphins and given them salary-cap exemptions,” V’landys said.
“Here it won’t cost them one cent. If they agree, we will be in a position to go to the clubs and show them what our plan is. We want to make sure there is sufficient time for consultation from our members.
“You have to give the clubs the opportunity to provide analysis, but I am confident that what the clubs will see, they will be happy.”
PNG expansion bid hits $170m roadblock as NRL clubs’ demands revealed
www.foxsports.com.au
