- Follows Thursday’s historic announcement in Sydney
- The NRL and the Albanian government negotiated for months
The NRL made history on Thursday when the league’s $600 million deal with Papua New Guinea was formally approved, but a clause inserted by the Australian government could see the landmark deal end instantly.
If PNG were to reach a deal with China, the 10-year financial commitment would be scrapped entirely.
The Albanian government’s clause is believed to focus on security and surveillance in the Pacific region, but ARL president Peter V’landys declined to go into further detail, citing legal restrictions.
“We are very confident in the agreement and we are confident that it will last 10 years,” he said. ‘Like any other agreement, there are rights for certain parties.
‘I don’t have any worries. One of the clauses in the contract is that I have to keep it confidential, so I better respect it so as not to breach it on the first day.
Under the terms of the 10-year deal, the Australian government will provide $290 million to fund the new NRL team, while $250 million will support rugby league in the Pacific region, including Fiji, Samoa and Tonga. .
The NRL created history on Thursday when the league’s $600 million deal with Papua New Guinea and the Australian federal government was formally approved (pictured, NRL star Daly Cherry-Evans in action for the Prime Minister’s XIII against the XII of the Prime Minister of PNG)
But a clause inserted by the Australian government could see the historic deal end instantly, mainly if PNG were to strike a deal with China (pictured, PNG’s Judah Rimbu celebrates scoring a try against the Australian Prime Minister’s XIII in October).
The remaining $60 million will be split between the 17 current NRL clubs.
For players who sign for the new franchise in PNG, who are expected to be in the NRL competition in 2028, a $200 million complex will be built.
Players will also enjoy tax-free NRL contracts.
Essentially the $600 million deal prevents China from establishing any police or security presence while Australia works to deny Beijing a foothold in the Pacific.
Pacific Minister Pat Conroy confirmed that the Federal Government’s clause was in force, but also did not provide further details.
He then added that he was confident that the trigger would not be triggered to extinguish the agreement between the two nations.
“The agreement contains a clause for the Commonwealth Government to withdraw its funding, that’s true, but I’m very sure that will never happen because that strategic trust is (now) there,” he said.
The Australian Prime Minister’s XIII beat the PNG Prime Minister’s XIII 42-20 in Port Moresby in October (pictured, defender Beau Fermor scores a try)
‘We have made no secret of the fact that we face ongoing competition in the region for influence and to be the preferred partner for the Pacific.
“That is vital for our security.”
The agreement benefits both Australia and Papua New Guinea, added Oliver Nobetau, representative of the Lowy Institute Pacific.
“It is essentially a good agreement for both, it reflects what each country wanted,” he said.
The announcement in Sydney came on the same day a separate security agreement between Australia and PNG came into force.
The pact commits both nations to maintaining and strengthening cooperation in defense, surveillance, national security, climate change and disaster relief.