NRL clubs demand compensation if Bears get relief ahead of 2027 arrival
NRL clubs will seek compensation if the Perth Bears are given salary cap relief to support their efforts to build a competitive squad ahead of joining the competition in 2027.
Up to this point, the Bears had difficulty attracting big-name players. Papua New Guinea Chiefs, who can offer tax-free deals to players along with those entering the 2028 competition, continue to call for concessions to Perth.
It has been reported by this imprint that ARL Commission chairman Peter V’landys is considering providing aid to the Bears following lobbying from Perth board members James Bracey and Daniel Dickson and the Rugby League Players’ Association.
However, such a move would face resistance from existing teams.
“Going back to the initial decision to accept Perth, clubs have raised a number of concerns about the process of acquiring Perth and the fact that the NRL will have two clubs in the competition, particularly given that we have provided them with our most sensitive and commercially confidential information,” South Sydney CEO Blake Solly said in a statement on Sunday. he said.
“We needed some comfort that these two clubs would be managed remotely. The NRL assured us that both clubs would be compliant with the salary cap and the football department cap.
“That was the basis for accepting their involvement. If there is a desire to move away from this, this needs to be discussed with all 17 clubs.”
It looks set to be a hot topic at Friday’s NRL CEOs’ conference, which takes place in Brisbane just hours before the Magic Round kicks off at Suncorp Stadium.
As well as the Bears, the NRL will also own the PNG Chiefs for the first 10 years of their existence as part of a $600 million package funded by the Australian government.
The decision to add the Bears and the Chiefs to the competition in the coming years has created a major recruitment hurdle for Mal Meninga-led Perth; PNG is able to offer players in the Pacific nation tax-free fees and third-party deals that increase their earning power.
Bringing in two teams in 12 months has also put pressure on other NRL teams trying to retain players. Only one new club has joined the NRL in the past two decades: the Dolphins in 2023.
The clubs signed the PNG agreement after each was allocated $4 million from federal taxpayers.
After expressing reservations about the Perth process, they are likely to seek compensation if the NRL backs down on not providing a salary cap to new teams.
“This is Peter and [NRL chief] Andrew [Abdo] done,” said Solly.
“I don’t think any club has ill-intentions about this. We all want PNG and Perth to do well. It’s just about recognition of the contribution the current 17 clubs have made to the growth of the game and the huge investment we’ve made in venues and players.”
The NRL declined to comment on Sunday.
ARL Commission chairman Peter V’landys told this byline last month that the NRL could not grant exemptions for Perth because “clubs have always stated that it would be unfair for us to do anything other than have the same salary cap for everyone”.
Former NSW and Australia halfback Andrew Johns believes the Bears should get a 50 per cent exemption for two key players. Others in the game debated whether travel and housing subsidies could be provided in Perth.
“I think all the clubs have always said we’re in favor of the competition being competitive,” Parramatta chairman Jim Sarantinos said.
“But we agreed and were informed that these clubs come with a set of conditions and these conditions may now change.”
Another club CEO, speaking on condition of anonymity, said on Sunday: “We don’t want them to relax in any way because that was the deal. But you could feel something was coming.”
Not all clubs are absolutely against this.
Canberra chief Don Furner said the matter would go into detail.
“We’re not completely saying no to something that could be a good thing for the expansion of the game,” he said. “There is no harm in discussing and exploring.”
Dolphins CEO Terry Reader said the toughest part of building an NRL franchise was recruitment, adding: “We had Wayne Bennett. [as coach] and they were asking the players to go to Brisbane and not to the other side of the country.
“When we walked in, we all knew what we were signing up for,” Reader said.
“But it’s in the game’s interests for new teams to be successful, especially Perth, which offers a different time frame for broadcast revenue. It’s worth talking between clubs and with the NRL.”
Chris Barrett is senior sports reporter for The Sydney Morning Herald. He is a former Southeast Asia correspondent for the Herald and The Age newspapers.Connect with: X or email.
