Revealed: How the NRL’s $600million Papua New Guinea deal could be completely ruined at any moment - sports news foot

The NRL created history on Thursday as the league’s $600million deal with Papua New Guinea was formally rubber-stamped – but one clause inserted by the Australian government could see the historic arrangement end instantly.

If PNG were to strike up a deal with China, the 10-year financial commitment would be axed altogether.

The clause from the Albanese government is believed to centre around security and policing in the Pacific region – but ARL Chairman Peter V’landys refused to go into further detail, citing legal restrictions.

‘We are very confident with the agreement and confident it will go its 10 years,’ he said. ‘Like any other agreement, there are rights to certain parties.

‘I have no concern whatsoever. One of the clauses in the contract is that I need to keep it confidential so I better honour that so I don’t breach it on the first day.’

Under the terms of the 10-year deal, the Australian government will hand over $290million to fund the new NRL team, while $250million will aid rugby league in the Pacific region including Fiji, Samoa and Tonga.

The NRL created history on Thursday as the league’s  $600million deal with Papua New Guinea and the Australian federal government was formally rubber-stamped (pictured, NRL star Daly Cherry-Evans in action for the Prime Minister’s XIII against the PNG PM’s XII)

But one clause inserted by the Australian government could see the historic deal end instantly – mainly if PNG were to strike up a deal with China (pictured, PNG’s Judah Rimbu celebrates scoring a try against the Australian Prime Minister’s XIII in October)

The remaining $60million will be split among the 17 current NRL clubs.

For players who sign for the new franchise in PNG – who are expected to be in the NRL competition come 2028 – a $200million compound will be built. 

Players will also enjoy tax-free NRL contracts.

Essentially the $600million deal locks China out of establishing any security or police presence as Australia works to deny Beijing a foothold in the Pacific.

Pacific Minister Pat Conroy confirmed the clause from the Federal Government was in place but also didn’t elaborate.

He then added he was confident the trigger to extinguish the agreement between the two nations wouldn’t unfold.

‘The agreement does contain a clause for the commonwealth government to withdraw its funding, that is true, but I’m very confident that will never happen because that strategic trust is [now] there,’ he said.

The Australian Prime Minister’s XIII beat a determined PNG Prime Minister’s XIII 42-20 in Port Moresby in October (pictured, backrower Beau Fermor scores a try)

‘We’ve made no secret of the fact we are facing permanent competition in the region for influence and to be partner of choice for the Pacific.

‘That’s vital to our security.’

The deal benefits both Australia and Papua New Guinea, Lowy Institute Pacific representative Oliver Nobetau added.

‘It’s essentially a good deal for both, it’s reflective of what each country wanted,’ he said.

The announcement in Sydney came the same day a separate Australia-PNG security agreement came into force.

The pact commits both nations to maintain and strengthen co-operation in defence, policing, national security, climate change and disaster relief.