By Stephen Dziedzic, ABC
Australia and Papua New Guinea NG have unveiled a long-awaited deal handing PNG its own NRL team, confirming the league's most ambitious expansion since formation, and notching what the federal government is hailing as a major strategic victory.
Prime Minister Anthony Albanese, his PNG counterpart James Marape and NRL boss Peter V'landys announced the agreement this morning in Sydney's CBD.
Under the deal, Papua New Guinea will join the NRL in 2028 and will become the competition's 18th or 19th team, depending on what happens with other franchise bids before then.
Mr Albanese confirmed that the federal government would provide $600 million dollars over a decade to help make the team a reality.
In return Papua New Guinea has agreed to sign what has been called a "parallel" agreement on "strategic trust" between the two countries, which is clearly designed to stop China from gaining a significant security foothold in the Pacific country.
Mr Marape has played down the significance of the agreement, saying it simply reaffirms Australia as PNG's top security partner and existing commitments made under a security pact both countries signed last year and which also enters into force today.
But the ABC has been told it contains a clause which allows the federal government to withdraw funding at any time if PNG breaches its commitment to stick with Australia as its major security partner.
If that happens then the NRL is obliged to terminate the franchise immediately.
The $600 million dollars will be split into three "streams" - $290 million for the franchise, $250 million for rugby league partnerships across the Pacific and a $60 million licence fee.
The agreement is capped at that amount, with the NRL agreeing it will not ask for any additional money.
The government is also making it clear it will not provide any additional funding beyond the 10 years, and says it's confident that the franchise will be sustainable after that.
The new team has not yet been given a name or a jersey, with the details to be worked out before 2028.
PNG's capital will host home games for the new team, and the NRL will set up a new compound in Port Moresby for its players and their families.
Port Moresby remains a dangerous city, but Mr Marape has predicted the entry of the NRL will have a transformative impact, helping authorities open up new tourism opportunities and crack down on lawlessness.
NRL boss Peter V'landys has championed the bid, arguing that it will have enormous development benefits in PNG and create new opportunities for the league.
- ABC