The National Rugby League (NRL) has given in-principle approval to a Perth-based team expansion bid. This agreement involves significant financial contributions from the Western Australian government, including $20 million for a center of excellence and up to $35 million for grassroots development over five years.
While the NRL initially sought $120 million over 10 years, negotiations resulted in a compromise between the NRL and the WA government. A previous bid from a private consortium was rejected due to a disagreement over licensing fees.
The approved model gives the NRL operational control of the team during its initial years, with a plan to transition control to club members and elected directors over time. The WA government will support community initiatives, pathway development, and infrastructure projects.
At the time, the government was willing to commit to a $20 million centre of excellence at the Malaga Sports Precinct development, situated 13km from the Perth CBD.
There was also a commitment to invest up to $35 million over five years in grassroots development, through the secondary schools system and the Indigenous Clontarf Foundation. The NRL was seeking $120 million over 10 years. Sources with knowledge of the situation said both parties had given ground in the negotiations to find a compromise.
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The NRL had previously rejected a bid by a private consortium headed by Cash Converters boss Peter Cummins after it decided it would not pay a licence fee. The bid later proposed a $20 million licence fee, but the NRL said it would instead work with the WA government to set up a team.
Under the operating model proposed, the NRL will have control of the team in its start-up years before handing over the organisation to the club’s members and elected directors.
For its part, the WA government would help fund community, pathways, development and infrastructure projects.
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