Deals are not usually cultivated this way. Not this publicly, and certainly not anywhere near a prime minister.
The courting and bargaining is more often done in a cafe or another, less conspicuous, location. It may involve overtures from a club chief executive or head coach, and some (ostensibly) secret details may slip out to the media and then the public. Rarely, however, will the leader of a country have anything to do with the recruitment of an NRL player to a club.
This knowledge of what is usual confirmed, by default, the unusualness of Sunday’s sight: Jarome Luai seated next to Papua New Guinea prime minister James Marape, in full view of a packed Port Moresby crowd. PNG Chiefs chief executive Lorna McPherson and general manager Michael Chammas were at Sir John Guise Stadium too, but it was Marape’s presence that underscored the unique concessions afforded to this expansion club. And not just in the obvious sense – that the Chiefs represent an entire nation as opposed to one city or even one region – but more regarding the previously unseen incentives at play.
Never before has an NRL franchise been created courtesy of a geopolitically motivated $600 million investment from the Australian government (because really there are not one, but two invested prime ministers). And just as Anthony Albanese was nowhere to be seen when Luai was lured to Wests Tigers from Penrith, Perth Bears officials will be watching this pleasant international tour unfold with the understanding that it could never be them.
It could never be them because this 29-year-old is a multiple Panthers premiership winner and State of Origin and Test star in his prime, not to mention a Tigers co-captain already on $1.2 million a season. And, frankly, an invitation to visit Western Australia does not have quite the same ring to it as a tax-free haven ready to set up a young family for life.
The Chiefs (2028 entry) and the Bears (2027 entry) are the same in that they are both expansion teams, and that is where the similarities end. Because the former has started its recruitment drive utilising unprecedented incentives.
The big one is the much-publicised tax-free earnings and tax-free third-party agreements, which together could net a player like Luai a sum far in excess of what he could earn at any other NRL club.
Then there is the subsidised travel and relocation costs, accommodation for themselves and their families at the luxury player village set to be built on the resort island of Loloata, and the possibility of special allowances for marquee players. These effectively amount to a salary-cap advantage but, crucially, not an official cap concession from the NRL.
Perth, conversely, have asked for salary-cap concessions and been rejected, with ARL Commission chairman Peter V’landys in November saying the Bears had “no need for any incentives” to recruit a competitive roster, citing the Dolphins’ successful entry in 2023 as proof and stressing that “everyone is treated equally”. Rivals clubs were also staunchly opposed to the idea.
The key difference is that the Dolphins were established in the rugby league heartland of Brisbane, complete with a fertile nursery of talent, while Perth is an AFL stronghold and a five-hour flight from the east coast.
The Bears and the Rugby League Players’ Association had hoped the 18th franchise might be granted incentives such as extra flights and assistance with accommodation and childcare costs to help with their sales pitch to players and their families. As it stands, head coach Mal Meninga is yet to land a marquee signing, and has less time and heftier challenges to field a competitive inaugural team next year.
This approach differs from that of the AFL, which has a long and deliberate history of using incentives to achieve and sustain expansion, particularly during its aggressive expansion phase featuring the entry of the Gold Coast Suns (2011) and Greater Western Sydney (2012). The governing body threw everything at both non-traditional, high-risk markets in a bid to make them competitive early. That included millions a year in funding, infrastructure and development programs, extra first-round picks, higher salary caps and larger playing lists (the Giants notably snared Jeremy Cameron and Toby Greene), along with ongoing financial and structural advantages that have proved controversial.
That is in contrast again to some expansion models abroad such as the NBA, which is driven by astronomical upfront licence fees and prioritises financial return over sport-specific considerations. In March, for example, the NBA board of governors – comprising one representative from each team – approved exploring expansion in Seattle and Las Vegas, bringing the world’s premier basketball league closer to adding to its 30 teams than it has been in more than two decades. The owners must agree on the expansion fee, which could be up to $US10 billion ($14 billion) or more, and decide whether it is worth splitting future revenue 32 ways instead of 30.
The Bears did not have to pay a licence fee, while the Chiefs’ is reportedly absorbed into the federal government’s $600m funding package. Perth’s predicament aside, PNG foundation head coach Willie Peters would have an almost impossible time recruiting mid- to top-tier players from Australia to lead a base of local signings. The pull for those with PNG or Pacific Islands heritage might be strong, but such a stark lifestyle change could require a further carrot.
“We all know the fact that the tax concessions are there, so therefore it’s of interest to a lot of people. Let’s not kid on about it,” McPherson said in March. “But it’s also about us as a management team making sure that player fits too, and they’re here for the right reasons. Our expectations of them are getting involved in the communities and working with us as well, because at the end of the day we want to inspire a nation.”
The ARLC has navigated its approach shrewdly. Without diving into AFL-style salary-cap distortions, it has succeeded in ensuring the Chiefs receive the most financial help while also maintaining the illusion of parity – with the rest of the competition and also with other expansion clubs. Unlike the Dolphins, which was safe growth, and the Bears, which is strategic, the Chiefs are a major – potentially transformational – gamble: bold and tough to execute, but offering the biggest return.
As far as we know, Luai hasn’t done a deal with the Chiefs, but he has until April 30 to decide if he wants to sign with them from 2028. Regardless, his visit alone highlights that, while the cap may be equal, the market reality is not.
There is nothing conventional about the run-in to PNG’s NRL debut. As if to confirm this, Marape gushed to local media about who he had just met.
“To be the first high-profile player to come and show interest in our team is something we deeply appreciate,” he said. “It sends a message that Papua New Guinea is ready, rugby league is strong here, and our future in the NRL is bright.”
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