As the NRL braces for a new reality of the Papua New Guinea Chiefs’ vast spending power, Warriors recruitment boss Andrew McFadden has made his dissatisfaction known.
In 2028, the Chiefs will join the competition as the NRL’s 19th team, with the Perth Bears to become the 18th next season.
However, while any new club faces the challenge of recruiting players for their inaugural campaign, Papua New Guinea (PNG) have a considerable leg up over the rest of the competition.
Because of an agreement between the Australian and PNG governments over the Chiefs’ admission into the NRL, the club is able to offer tax-free contracts to players willing to relocate, for 10 years at least.
Earlier this week, four-time premiership winner Jarome Luai committed to joining PNG from 2028, and walking out on the final two years of his time with Wests Tigers, thanks to a player option in his contract.
That deal will reportedly be worth $1.2 million per season. And while Luai has spoken about his desire to play his part in developing rugby league in the Pacific nation, he’s also been forthright about the fact tax status played a role in getting him to the negotiating table.
For the rest of the NRL, then, PNG’s ability to offer that money does leave rival clubs at a disadvantage.
The Warriors, in particular, have already felt the impacts of recruitment, seen recently by the likes of co-captain Mitch Barnett, Addin Fonua-Blake and Reece Walsh asking for early releases from their contracts to move back to Australia.
As development and pathways manager for the Warriors, McFadden will face a huge test from PNG, with all clubs’ ability to attract and retain players coming under the microscope.
And with that on board, McFadden told the Herald that PNG’s unmatched financial power is cause for concern.
“A reality has hit the NRL this week about how it can play out,” he said. “There’s no chance for clubs to be able to compete with the money they’re talking about.
“They’ve essentially got double, 40-48% better salary cap than everyone else because they don’t pay tax. It’s a danger to all clubs. I don’t really like it, the integrity of the game is questioned a little bit.
“For 100 years, the salary cap has been equal. Now we’ve got this instance where one team has a different salary cap. I’m not sure how it’s going to play out, to be honest with you.
“My big issue is what happens if they win a comp in their third year? They’ve done it on a much bigger salary cap.
At the time of writing, the Warriors have 10 players off contract at the end of the 2027 season, meaning they can negotiate a deal to join PNG in 2028 from November 1 this year, including Wayde Egan, Jackson Ford, Charnze Nicoll-Klokstad, Adam Pompey, Ali Leiataua and Dallin Watene Zelezniak among others.
One factor in clubs’ favour, though, is there will be reluctance from some players to relocate to PNG.
Because of safety concerns in the country, players will be housed in a fully secured compound at Port Moresby’s Airways Resort, with 24-hour security.
Whether or not players want to relocate with their families to said compound will undoubtedly be down to them.
For the Warriors, though, as well as the safety of living in New Zealand compared to Port Moresby, the club can also boast one of the best cultures in the NRL, instilled by coach Andrew Webster and chief executive Cameron George.
Because of that, McFadden emphasises that the Warriors’ off-field offerings are just as significant of any tax status.
“It’s massive,” he added. “Having an environment where players want to come to training and they enjoy it is underrated.
“I know they get paid, but they’ve still got to have fun, they’ve got to enjoy it, and they’ve got to feel like they’re getting better.
“That’s the environment Andrew Webster has created. That’s so important. You look at other NRL teams, and it’s not nice when there’s an unhappy club and there’s a lot of uncertainty.
“Stability is really important, and that’s credit to Cameron and what he’s built here.
“I’ve been around for a long time, and been involved in two types of clubs. Our club is very strong because we’ve got that stability, and the quality in people here.”
Alex Powell is a sports journalist for the NZ Herald. He has been a sports journalist since 2016.