120 million reasons for NRL to bring in 20th team

The NRL has a $120 million incentive to introduce a 20th team due to a secret clause in its $5.3 billion broadcast deal as the game’s desire to expand is set to deliver a new franchise by the end of the decade.Rugby league is in strong financial health after brokering the deal last month with Foxtel and Nine, the publisher of this masthead. The seven-year agreement runs from 2028 to 2034, making it the largest media rights package in Australian sports history.However, sources not authorised to speak publicly due to commercial sensitivities have told this masthead that $20 million per season will be deducted from the deal from 2029 onwards if a 20th team isn’t added to the competition. That would come to a total of $120 million for the final six years of the arrangement.The Perth Bears will become the 18th team in 2027 and the Papua New Guinea Chiefs the 19th the following year. There isn’t a definitive call on if and where a new franchise will be added in 2029.But given the governing body’s desire for growth - and the huge financial incentive to do so - it’s expected further expansion will occur. It’s also an indication that broadcasters are prepared to pay for an additional game each week.A second team in New Zealand is the most likely scenario, although the NRL hasn’t ruled out the prospect of a fifth Queensland team. By going to 20 teams, the NRL will have more flexibility around its draw, raising the prospect of each team playing each other twice, both home and away.Warriors fans look on during the round 16 NRL match between New Zealand Warriors and North Queensland Cowboys at One NZ Stadium in Christchurch in June.Getty ImagesA 20-team premiership also lends itself more to the prospect of a conference system and a more strategic placement of byes, including a concentration of them in the middle of the season.The Warriors have made huge inroads in rugby-mad New Zealand, playing in front of packed crowds. However, there is a feeling the nation has the talent, infrastructure and interest to accommodate a second side.The Southern Orcas are a Christchurch-based bid team attempting to win the next NRL licence.“We’re doing our best to ensure that is the outcome,” said Southern Orcas chairman Sir Graham Lowe.“It’s a fantastic opportunity for rugby league in the epicentre of rugby union, you can’t overlook that fact.“The Warriors have done a fantastic job in a rugby union country, where rugby union is the national sport. But the popularity of the NRL is phenomenal.“You can go anywhere in New Zealand and for younger people, the NRL is right at the front of their mind. The excitement you can feel in the south isle about a new team coming in in Christchurch, it’s fantastic.”The Orcas propose to play out of One NZ Stadium, a 30,000-seat venue with a glass roof that was opened this year.“It’s made for the NRL,” Lowe said. “It’s absolutely perfect conditions for every single game. It’s walking distance from the CBD and is made for entertainment.”Some pundits have questioned whether there’s enough talent to spread across another team. However, Lowe is adamant New Zealand is a huge pipeline for aspiring rugby league players.“There’s miles of talent over here,” he said.“The Warriors have done a fantastic job, but they are just one team. This offers opportunities to young kids who start college and have been besotted and brainwashed by rugby union.“This offers them an opportunity right on their doorstep. We want to get them from the cradle.“Rugby league has copped the rough end of the pineapple in this country for as long as I can remember and all the prized possessions of rugby union have evolved in Christchurch. We’re going to wear some hobnailed boots amongst that lot.”From our partners