The ARL Commission is playing hardball with the expansion bid teams hoping to gain entry into the competition later this decade with NRL CEO Andrew Abdo announcing all eight had been rejected.
This stunning development means expansion is unlikely to happen in 2027 with Papua New Guinea now the best hope of becoming the NRL’s 18th franchise the following year.
The NRL has been in negotiations with the Western Bears bid about entering the competition in three years’ time and even though the expansion hopefuls had performed a backflip to offer to pay a licence fee to in an effort to take their expansion bid off “life support”, the likely scenario now appears that a team funded by the WA Government is the preferred option.
Other expansion bids, including three from the South Island of New Zealand, one from Fiji, a Central Queensland side and two from south-east Queensland have also been rejected by the NRL under their current business models.
Newtown, who have been out of the top-flight competition since 1983, had partnered with Ipswich to propose a new team to be known as The Jets but they have also been told by the NRL that they need to revise their proposal to have any chance of getting the green light.
“Expansion is an exciting priority for the game,” Abdo told NewsCorp.
“The Commission have made it clear that any expansion must have a strong business case that delivers value for all stakeholders. We are working on the right plan and model for every region. New Zealand, Western Australia, Queensland and PNG are strategic, vibrant and growing rugby league regions.
“At this stage, the bids submitted have not met the necessary threshold to be accepted. We continue to work to strengthen the case for any potential expansion.”
South Island Kea are the leading bid for a second team in New Zealand although the Southern Orcas consortium is trying to revive its plan after missing out previously in expansion contests.
Brisbane Firehawks, who missed out to Redcliffe in the last expansion race, are financially strong but the NRL is concerned about adding another team in the region with Perth, PNG and NZ the preferred destinations.
The NRL is leaving the door open for the Western Bears to come into the compeition in 2027 if they can strike a deal with the state government after turning their back on the bid led by businessman Peter Cumins recently.
They had not stumped up for a licence fee given an estimated $26 million in start-up costs and what Cumins felt was between $10 million and $20 million in value being created for the NRL by establishing a West Australian team.
The Dolphins were not required to pay a licence fee when they entered the league in 2023, given the club’s financial strength.
NRL CEO Andrew Abdo. (Photo by Mark Metcalfe/Getty Images)
Cumins previously estimated a licence fee would be in the vicinity of $20 million, but had been hopeful of reaching a compromise with the league to enter the league in 2027 as planned.
“Certainly that is our hope still,” he said earlier this month. “But we’ve got to be very conscious of the fact that if there is a (licence) fee to be paid and it’s significant, we’ve got to make sure we can honour the commitment that we make.”
Cumins’ previous experience working with the Western Reds’ entry into the Australian Rugby League in 1995 had cautioned him against paying exorbitant fees at the outset.
He was sceptical of the idea of the government-funded option and WA Premier Roger Cook has previously distanced the Government from the bid.
The Roarhttps://https://ift.tt/MB5Sg8s plans in tatters as NRL knocks back all bids with Jets’ hopes of comeback grounded
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