The WA government has set up a taskforce to work directly with the NRL on brokering a deal for an 18th rugby league club.
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Peter V’landys’ ambitious plan to expand the NRL into Perth has hit another hurdle, with the West Australian government rejecting an initial request to inject millions of dollars into grassroots rugby league.
Establishing a new team in Western Australia is a critical part of the NRL’s plan
to grow its competition to 20 teams by 2030 and secure a record broadcast deal to fund the sport.
WA Premier Roger Cook, himself a former rugby union and league player, is a supporter of an NRL expansion team based in Perth. Negotiations for a cash injection from the WA government are ongoing. Trevor Collens
Expansion plans have stalled in recent weeks after NRL chief executive Andrew Abdo rejected eight proposals, including a bid from a Perth-based private consortium for a team that would operate as a joint venture with the North Sydney Bears.
“The commission has made it very clear that expansion has to have a strong business case – that goes for prospective regions and individual bidders,” Mr Abdo said at the time. The NRL said it would deal directly with the state government in a bid to secure a West Australian club.
Those talks have already hit a barrier. WA government and rugby league sources with direct knowledge of the negotiations, who requested anonymity to speak freely, said the NRL had asked for approximately $12 million in annual funding for the next decade.
The figure is the same as what was pledged by the Tasmanian government to the AFL’s newest club the Tasmanian Devils, which is expected to receive $144 million over 12 years and a further $60 million for a new high-performance complex.
Sources said the NRL’s request was rejected earlier this month and a task force, led by WA treasury officials, had now been established to negotiate with the NRL.
The WA government confirmed it had rejected the NRL’s initial funding request but would not discuss the figure proposed by the rugby league body. It is still offering to upgrade HBF Stadium and build a high-performance facility.
The NRL has privately made it clear to the government that any funding it received would be used for grassroots not players. Spokesman Misha Zelinsky declined to comment.
WA government insiders say it has no interest in pouring tens of millions of dollars of taxpayer money into what amounts to a “subsidy” for the NRL just months out from an election in a state where rugby league is viewed as a peripheral sport.
“The reason we have a strong budget is because we are disciplined with our spending decisions,” a senior WA government source said.
Premier
Roger Cook is personally interested in securing an NRL team because of his history with the sport but his ambitions fell apart early this month after a private bid failed to meet expectations.
The WA consortium led by Perth business figure Peter Cumins claimed to have secured the cash required to create a team and said he had attracted interest from up to 10 potential sponsors.
Its bid was rejected in early October over concerns the consortium would not pay the NRL a $20 million licence fee to join the competition. NRL executives also claim they were blindsided by the decision to include Sydney Kings part-owner Paul Smith and former NRL executive Paul Kind in the ownership group.
Deciding which teams will join the NRL competition is critical for Abdo as he prepares to start negotiations with potential broadcast partners on a new broadcast deal. The existing deal with Foxtel and Nine Entertainment, owner of
The Australian Financial Review, expires in 2027.
The time difference provided by a Perth team would bring scheduling flexibility and more games to the competition that could be of value to potential partners. It could also generate sponsorship money from sectors that thrive in the region.