It’s been a hectic week for the Pacific: Australia and Nauru inked a
landmark treaty,
Tonga’s Prime resigned, and the Australia-PNG Bilateral Security Agreement finally began. And that was just on Monday.
Now, in what is certain to be hailed as the biggest sports diplomacy engagement in the Pacific, Papua New Guinea will get its own rugby league team. Prime Ministers James Marape and Anthony Albanese have maintained an unwavering optimism about the impact of this deal for so long that it’s started to look pretentious.
Despite the benefits advocated for by government officials, uncertainty remains as to the purpose, or solution, served by a rugby league franchise; and whether this is a priority for the neighbours on either side of the Coral Sea.
While Papua New Guineans love their rugby league, they’re not prone to jumping on bandwagons. From a PNG perspective, the day after the announcement will be just like any other. Benefits will be seen, realistically, when the team makes its debut in 2028. This gives us four years to unpack the elements of the deal and assess its overall benefit.
For Australia, the biggest upside is a reported security clause embedded within the deal, confirmed
by numerous government sources. For the measly annual price of $60 million over the next decade, Australia will have succeeded in averting a China-PNG policing partnership. This is equivalent to less than 0.02 per cent of Australia’s 2024 defence budget – talk about return on investment. On the downside, there has been domestic criticism of the $600 million commitment against the backdrop of Australia’s own housing and cost of living crises.
For PNG, the gains aren’t clear cut.
Socially, Marape has high hopes that the sport can promote unity amidst the civil unrest and tribal warfare that has put the country in the headlines this year. It’s difficult for this argument to hold weight when the basis for tribal violence has nothing to do with whether or not they have a team in the NRL. The underlying causes of these conflicts are yet to be addressed. And a rugby league match is likely to be only an 80-minute Band-Aid distraction for these ongoing tensions.
The likelihood of violence is heightened during local league matches and the broadcasting of the State of Origin. For residents in Port Moresby, the reality is that it’s common to be encouraged by peers to “go home early” and “enjoy the game at home” on these Wednesday evenings so as not to find yourself in a dangerous situation.
Economically, there are still a lot of grey areas on how lucrative the deal will be. As reported by the ABC, NRL bosses Andrew Abdo and Peter V’landys view this as “a potential cash cow”. PNG would see a boost in tourism numbers with spectators flying in for home games, and revenue generated from ticket sales, merchandise and so on. However, it isn’t a stretch to imagine these economic benefits will be limited to the handful of people directly involved in this league circle.
Last week, the PNG parliament passed its budget for 2025, including a new law to grant income tax exemptions to those involved in the franchise.
Local newspapers have criticised the move – while PNG’s middle-income earners pay between 35 per cent and 40 per cent in tax, marquee players
could save up to $550,000 per year.
Politically, this won’t have much effect on government stability. The dynamics and decision-making of votes do not hinge on league teams, or even geopolitics at that. The next national elections are in 2027, leaving plenty of time for other political issues to go right (or wrong) for the government. Surprisingly, this deal is one of the few things that can get bipartisan support in the PNG parliament, with PNG’s Opposition leader Douglas Tomuriesa advocating the importance of the deal. This praise comes amid efforts to oust Marape through several attempts at votes of no confidence this year.
The challenge of longevity for the franchise will be dependent on its management. In the initial stages, it is envisaged that there will be a board of experts, enabling knowledge transfer and a gradual transition to a composition of local stakeholders.
The other major challenge is security. Considering this, it makes sense to include a security clause for greater partnership with the Australian Federal Police and the Royal Papua New Guinea Constabulary. Doing so will help protect the investment in the franchise.
We don’t have all the answers yet. Scrutiny is set to continue for the sport loved by both Australians and Papua New Guineans. The next decade will determine whether the franchise fulfils its potential and brings major benefits – or becomes an underwhelming 50th birthday present to Australia’s former colony.
amp.theguardian.com
