“This is a historic step for Rugby League, Australia, PNG and the entire Pacific,” Australian Rugby League Commission chairman Peter V’landys said.
“Rugby league is the number one sport in the Pacific. This new club will solidify rugby league’s role as the unifying language of our region.
“Rugby league isn’t just sport, it’s a social force for good – a way to improve lives and build stronger communities.
“The new PNG team provides the NRL with a new 10 million+ audience, many who will go from being casual fans into engaged fans.
“Just as importantly the pathways investments will provide many new and exciting players to the game.”
Of the $600m outlay, $290m will go towards the NRL franchise and $250m is for rugby league programmes in the region. A further $60m will be paid directly to the NRL as a licence fee, which is expected to be shared between existing clubs.
Another $120m of the money committed will come from existing government programmes, leaving an average annual cost to the budget of $48m.
However, the Australian government will be able to pull out of the deal at any point.
The final documents to confirm the team’s creation will be signed in the coming weeks.
Players will be granted tax incentives to relocate from Australia or New Zealand. Furthermore, players will also be housed in a government-funded secure compound in Port Moresby.
Depending on expansion into Perth, Papua New Guinea will be either the 18th or 19th team.
