“That is why this partnership isn’t just about Papua New Guinea, it’s also about our relationship with the Pacific.”
Australian taxpayers will provide $600 million over the next 10 years to help establish the team, with $120 million coming from existing Department of Foreign Affairs and Trade funding.
The PNG government has committed to build safe compound-style accommodation for players and to offer tax-free salary benefits to lure star players to its capital, Port Moresby.
The Australian and PNG governments have signed a separate agreement on “shared strategic trust” that sits beside the franchise agreement between the NRL, Australia and PNG.
The exact terms of the strategic trust agreement on are confidential and will not be released to the public.
“Today also confirms our entry into force about our bilateral security agreement, which was signed just over a year ago in Canberra,” Albanese said.
“Since signing that agreement, we’ve made real progress with Australia providing tangible support to PNG’s internal security priorities … I think that today is a day where people will look back in five years, 10 years, 20 years and see that this was a day where the relationship between our nations was cemented even further into a new level.”
While there is not an explicit clause granting Australia veto rights over security deals between PNG and other countries, government sources said the NRL agreement was “contingent” on PNG continuing to support the principle that security and policing arrangements are handled by Pacific nations including Australia.
The sources, who were not authorised to speak publicly, said the agreement allows the Australian government to withdraw financial support for PNG’s NRL team at any time and without supplying a reason at any time until 2034.
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The NRL would be required to terminate the PNG team’s franchise if the Australian government removes its support under the terms of the agreement.
“This is about diplomacy, this is about making Australia safer, this is about securing our status as the security partner of choice in the Pacific,” a senior government source said.
Prime Minister Anthony Albanese and PNG counterpart James Marape discussed PNG’s NRL bid while walking the Kokoda Track in April.Credit: Dominic Lorrimer
The government announced a new treaty earlier this week with Nauru that allows it to block China and other countries from striking any security or telecommunications deals with the tiny Pacific nation in exchange for $140 million in financial support from Australian taxpayers.
PNG’s Foreign Minister Justin Tkatchenko told this masthead last week that the agreement has “nothing to do with China” but Australian government officials have insisted there was a security element to the agreement.
A separate clause prohibits the NRL from asking the Australia government for more money within or after the 10-year funding period.
The logo, colours and name of the new PNG team are yet to be determined.
One option is for the club to be called the PNG Hunters, the name given to the team that has been playing in the Queensland Cup competition since 2014.
It remains unclear whether PNG will be the NRL’s 18th or 19th team, given there is a desire to add another side as early as 2027.
The NRL remains in negotiations for a Perth-based franchise, which are continuing directly with the WA government after a consortium bid was rejected.
Sources said negotiations over the PNG team were up in the air until the May NRL “magic round”, when Pacific Minister Pat Conroy and Australian Rugby League chairman Peter V’landys struck an in-principle agreement for a team to enter the competition.
One of the likely signing targets for the franchise is Xavier Coates. The Melbourne, Queensland and Australian star was born in Port Moresby, has previously represented Fiji and, given he is only 23 years old, will likely be in his prime when the time arrives to begin negotiating with prospective players.
His younger brother, Phillip, is also a rising star who represented the PNG Junior Kumuls in their recent draw with the Australian Schoolboys team.
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.
The expansion of the NRL competition is expected to bring more money into the game and the existing clubs want to share in the upside.
They have been placated by the division of a $60 million license fee, which will come out of the $600 million Australian government payment.
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