NRL: PNG Team is announced, play begins 2028

Australia, PNG and the NRL have finally announced an agreement to host an NRL team in PNG. In return, Papua New Guinea has agreed to sign what has been called a “parallel” agreement on “strategic trust” between the two countries, which is designed to stop China from gaining a significant security foothold in the Pacific country.

The 10-year Pacific Rugby League Partnership will support investment into grassroots, pathways and elite rugby league across Papua New Guinea, Tonga, Samoa and Fiji. It will also support the introduction of a PNG-based NRL side as part of an expanded NRL Telstra Premiership.

The new PNG team will come into the NRL in 2028. The timing gives the new franchise three full years to build a high-performance facility, hire a coach, assemble a roster and prepare for their first season in the competition.

The ABC reports that the deal includes a clause that allows Australia to withdraw funding at any time if PNG breaches commitments to keep Australia as its major security partner. Australian government sources insist its backing of a PNG team is contingent on the maintenance of shared strategic trust, and it can withdraw funding at any time. In such a circumstance, the NRL would be compelled to terminate the PNG team’s licence under the terms of the deal

Of the Australian funding, $120m will come from existing Foreign Affairs and Trade funds. The funding will be distributed in three forms

$290 million for the team
$250 million for rugby league partnerships across the pacific
$60 million license fee

In addition the PNG Government will spent up to $200m on a secure compound for players and staff, along with tax free benefits. 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.

The SMH notes that 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.

The agreement is capped and the NRL has agreed not to ask for additional funding. The Government has also said there will be no additional funding after 10 years.

PNG’s capital will host home games for the new team, and the NRL will set up a new compound in Port Moresby for its players and their families. 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.

The Telegraph reports that existing NRL clubs have been told they will receive an additional 1.75m next year in return for agreeing to the new license – totally $4m over 5 years . Club bosses have been told they will each receive $1.75 million in 2025, another $1 million in 2026, $750,000 in 2027 and then $250,000 in 2028 and 2029.

The ARL Commission will retain control of the club for at least the first five years, with four members of the commission on the board along with three representatives from the PNG government, one representative from the Australian government and one independent.

As a sweetener to sign with PNG, players and staff will be granted tax-free status. That will allow a marquee signing on a $1.2 million deal to save up to $550,000 per annum.

Sources

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