NRL’s secret ‘get-out’ clause in PNG expansion deal revealed

Australian Rugby League Commission (ARLC) chairman Peter V’landys has disclosed that the Australian government holds a $600 million “get-out” clause if Papua New Guinea (PNG) backs out of a security agreement related to the country’s NRL expansion bid, reported Code Sports on Thursday.

As part of Australia’s broader Pacific strategy, the federal government has pledged to contribute $60 million annually over the next decade to support PNG’s bid for the 19th NRL team.

The funding is aimed at strengthening the political and security ties between Australia and PNG, as part of a broader “soft diplomacy” approach amid concerns over China’s growing influence in the Pacific.

However, V’landys confirmed that the agreement comes with a significant exit clause.

If PNG were to align itself with China in ways that undermine the security arrangement, the Australian government could pull out the funding.

Despite this, V’landys expressed confidence that such a scenario would never come to pass.

“There is a clause in our agreement that says the deal can be terminated if the security agreement is terminated,” V’landys said.

“But our friends in Papua New Guinea are the best neighbours in the world. They would never, ever do anything that would require us to terminate the agreement.”

PNG Prime Minister James Marape reaffirmed his country’s commitment to its security partnership with Australia.

“It is in our interests that we have security that is sacrosanct. We will not compromise security,” Marape stated.

Pat Conroy, Australia’s Minister for Pacific Island Affairs, echoed those sentiments, stressing the strength of the relationship between the two countries.

“We are heavily reassured by the statements from Mr Marape that PNG is a security partner for Australia,” Conroy said.

“We fought side-by-side in World War Two, we signed a bilateral security agreement through the leadership of Mr Marape and Prime Minister Anthony Albanese, and we are negotiating a defence treaty right now at this very moment.”

“The security future of both countries is tied together very closely.”

While PNG struggles with one of the world’s highest crime rates, V’landys assured NRL players that their safety would not be an issue when relocating to the Pacific nation.

“Absolutely,” he said when asked if Australian players would be safe.

V’landys recently inspected potential locations for player accommodation and a “centre of excellence.”

He said the facilities will be up global standards and would offer players a luxurious environment.

“We were very impressed with what’s available. We’re going to make this a resort-style area for our players and wives,” V’landys added.

“They’re going to be on a permanent holiday when they’re over here, except when they play and train. Otherwise, they’ll enjoy the natural beauty of PNG.”

The agreement between Australia and PNG is set to last until 2037.

While concerns over security remain, both nations appear committed to the partnership, with Australian officials confident the NRL expansion has the power to be a stabilising force in the region.