NRL clubs push back against proposed salary cap concessions for expansion team
NRL clubs have opposed a proposed marquee player allowance for the Perth Bears to help the expansion club attract a headline star as a test case for Peter V’landys’ anticipated bid to become executive chairman of the Australian Rugby League Commission.
The Bears, who will be the NRL’s 18th team next season, have struggled to attract big names west ahead of their first campaign.
After lobbying by club executives, the ARLC recommended granting franchise spending privileges coached by Mal Meninga.
This will allow a club sponsor to pay a Perth recruit up to $200,000 at 20 per cent on top of their current salary; otherwise it is not allowed under NRL salary cap rules.
That means they could offer a $1 million player for up to $1.2 million, giving the Bears an advantage in a player market where the Australian government-backed PNG Chiefs are dangling tax-free salaries.
But the allowance is opposed by the current 17 teams, who determined their positions after consulting the NRL.
The total number of players Perth can pay sponsors will be capped at $500,000 a year under the plan, but clubs argue this conflicts with the competition’s level playing field and the terms of admission for the NRL’s Bears into the league.
A club chief, speaking on condition of anonymity, said: “All clubs understand the challenges facing the Perth Bears and are happy to consider proposals to support them. We have been offering this support to the ARLC for nine months.”
“We don’t think the major player suggestion is correct, but we are happy to suggest and consider other solutions.”
Another club boss said: “It’s not fair. The competition needs to be equal. It’s not the clubs fault they haven’t hired anyone.”
Clubs also expressed concerns about preferential treatment for an NRL-owned club.
Chiefs, who will join the competition in 2028, are also owned by the governing body and have the advantage of offering tax-free wages to players and tax-free third-party deals from non-club sponsors; however, these benefits were created by PNG and Australian government legislation rather than NRL policy changes.
Chiefs recruits Jarome Luai and Alex Johnston are being paid for PNG-related TPAs 16 months before their move to Port Moresby, but will have to pay Australian tax until they move to the Pacific nation.
Other clubs signed up to the tax-free PNG scheme, knowing that the new team would need help convincing players to live on a site there and receiving $4 million compensation each from the $600 million Albanian government package.
But in the case of the Bears, they believe it would be more appropriate to provide the aid as an alternative to salary cap relief; incentives such as relocation allowances, childcare support, and flights for immediate family members.
The Rugby League Players’ Association has also joined the talks and has long advocated for additional concessions to attract players to Perth.
He has widespread support from some of the game’s heavy hitters.
South Sydney chairman Nick Pappas told this imprint before the broadcast deal was confirmed: “My personal opinion is that I think Peter would be perfect for this position as CEO or executive chairman.”
“He’s proven himself… if that’s the path he wants to go and the commission supports it, I’m very supportive.”
Other power brokers Nick Politis (Sydney Roosters), Matt Tripp (Melbourne Storm), Rebecca Frizelle (Gold Coast Titans) and Barry O’Farrell (Wests Tigers) have already publicly backed V’landys to become chairman, and other club executives have also expressed their support behind the scenes.
V’landys said last week he would also need to consult with clubs on the entry of a 20th team into the NRL in 2029; major partner Foxtel had requested this as part of its new seven-year broadcast deal.
The NRL has been contacted for comment.
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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.
