Papua New Guinea has just become an even more financially attractive destination for prospective NRL players following revelations that third-party earnings will be tax-free.
The Chiefs will enter the player market on November 1 ahead of their entry to the NRL competition in 2028. As an incentive for players and officials to sign, the governments Australia and PNG have brokered a deal that will allow all earnings to remain untaxed.
Now there is an even bigger sweetener to shift to the Pacific nation, with third-party agreements (TPAs) also falling under the tax-free status, according to Australian Rugby League chairman Peter Vโlandys. These deals wonโt be included in the salary cap.
โAny revenue they earn in PNG is tax-free,โ Vโlandys said. โItโs like youโre doing a tax return in PNG, itโs all tax-free.
โPlaying in PNG will set them up for life. We used to have the Brisbane Broncos as a one-city team. This is a one-country team, where people are fanatical about rugby league.
โCan you imagine 10 million people following one team? Itโs a monopoly because itโs the only sport thatโs played there. People donโt realise how big PNG is going to be.โ
Justin Olam is an example of the third-party opportunities that exist in PNG. The former Storm and Tigers star had more than half a dozen personal sponsors โ including ExxonMobil, Samsung, Ok Tedi Mining, Nasfund superannuation and the Papua New Guinea Tourism Promotion Authority. All up, the former Storm centre earned in excess of $300,000 per annum in his pomp.
PNGโs biggest firms will be clamouring to become a commercial partner of the new franchise, with those who miss out likely to turn their attention to individual player sponsorships opportunities.
โThereโs a definite opportunity there because of the public interest in rugby league and the corporate support there,โ said Olamโs manager, David Rawlings.
โIn particular, there would be lots of local businesses that would like to have some affiliation with the players. Everything in PNG is about having access to rugby league players.โ
After breaking Ken Irvineโs 53-year-old try-scoring record, South Sydney winger Alex Johnston has expressed an interest in finishing his career in PNG. Given his profile and achievements, he would be a marketing dream for businesses.
PNG could potentially offer a marquee player $1.5 million per season. If he could earn an additional $400,000 in PNG sponsorships, it would be the equivalent of a $3.5 million per annum salary in Australia once the tax benefits are factored in.
While some pundits remain sceptical about whether PNGโs inclusion in the competition will be a success, Vโlandys has no doubt it will benefit the nation on and off the field. The Australian federal government will invest $600 million over 10 years to support rugby league in PNG.
โThereโs still a lot of haters knocking PNG, but they have no vision,โ Vโlandys said. โThere are 10 million people fascinated by one sport, the whole country is going to follow it. Itโs going to be unbelievable.โ
