What’s the Buzz: Push Grows for Perth, PNG Salary Cap Sombrero
Sydney, NSW — The NRL’s expansion drums are beating louder than ever — and with them comes a bold, controversial idea that’s gaining traction among key stakeholders: a salary cap sombrero for incoming franchises in Perth and Papua New Guinea.
While official expansion announcements remain on the horizon, momentum behind the league’s 18th and even 19th teams is accelerating behind the scenes. Insiders are now tipping Perth as the frontrunner for club No.18, with a PNG-based franchise (likely headquartered in Cairns or Brisbane) closely following in the race to become the NRL’s 19th.
But the most heated debate? How the newcomers are supposed to compete.
A Level Playing Field… Or an Uneven Advantage?
High-ranking NRL officials, former club executives, and even current coaches are reportedly backing the introduction of a temporary salary cap exemption — or what’s now being cheekily dubbed the “expansion sombrero” — to help Perth and PNG build competitive rosters from Day 1.
Under the proposal, new clubs would receive $1.5M to $2M in additional cap space over their first three seasons. This would allow them to overpay for marquee players, lure talent from established teams, and establish a foothold in their respective markets.
Critics argue it’s unfair. Supporters say it’s essential.
> “You can’t expect a brand-new franchise to start on $11.4 million with no juniors, no rep players, and no legacy,” one club CEO told NRL Buzz under anonymity. “They’ll get slaughtered if you don’t give them a leg up.”
That sentiment is being echoed in television commentary boxes and boardrooms alike. The Dolphins’ stunning 2023 debut has only strengthened the case — despite their instant success under Wayne Bennett, the Redcliffe-based outfit had 18 months to build and still struggled to land elite players until after their first season kicked off.
> “Wayne made miracles with what he had, but they missed out on Munster, missed out on Harry Grant, and only landed Herbie Farnworth and Flegler once they had proof of concept,” said one NRL pundit. “Perth or PNG can’t do that without help.”
Peter V’landys Weighs In
ARLC boss Peter V’landys has remained characteristically coy but hasn’t ruled out special financial assistance for expansion clubs.
> “If we’re going to bring in new markets, we have to give them a runway,” V’landys said earlier this year. “You don’t want a repeat of the Gold Coast Titans’ early years where the results turned fans away.”
It’s believed the NRL’s commercial team is in favour of the sombrero model, seeing it as a necessary evil to attract big-name signings and generate fan and sponsor engagement from Day 1.
There is also precedent — when the AFL introduced the Gold Coast Suns and GWS Giants, they were granted a raft of financial and list-building incentives, including priority draft picks, extra signings, and larger salary caps.
Who’s Opposing It?
Not everyone is sold.
Several established NRL clubs — especially those with tight rosters or limited junior systems — are reportedly fuming at the suggestion of a bloated cap for expansion clubs. Their argument? Why should the newcomers get an advantage they never had?
> “We’ve done the hard yards, stuck to the cap, lost players because we couldn’t pay overs. Now we’re meant to watch a new team come in and offer $1.3M for a $900K player? That’s not how you build integrity,” one recruitment manager told Buzz.
There are also fears that the sombrero model could lead to roster raiding, with emerging clubs throwing oversized contracts at established stars and disrupting the balance across the competition.
Already, whispers have emerged that multiple clubs are bracing for Perth raids on their second-tier players — including fringe halves, fullbacks, and forwards who could fetch double their market value under an inflated expansion cap.
Player Managers Quietly Celebrating
While clubs may groan, player agents are licking their lips.
If the NRL formally approves a salary cap exemption for Perth and PNG, it could create dozens of inflated contracts and push market prices even higher — especially for playmakers and spine players.
> “If I’m managing a 24-year-old utility who can slot into the halves or hooker, I’m already calling Perth,” one prominent agent admitted. “They’ll be desperate, and desperation brings dollars.”
For players stuck behind Origin-level stars at powerhouse clubs, the emergence of Perth or PNG could offer career-changing money and opportunity — and the agents know it.
PNG’s Political Weight
The push for a PNG-based team is about more than rugby league — it’s geopolitics.
Backed heavily by both the Australian and Papua New Guinean governments, the proposed franchise has drawn diplomatic support as part of Australia’s “soft power” strategy in the Pacific. Prime Minister Anthony Albanese has repeatedly stated his intent to see a PNG-based team in the NRL before 2030 — if not sooner.
With political dollars potentially backing the bid, a PNG salary cap top-up might not even come out of NRL coffers — it could be funded externally, adding another layer of complexity.
Fans React: Fair Game or Favouritism?
Fan opinion is sharply divided.
On social media, some fans argue the salary cap sombrero is a “necessary weapon” to make sure expansion sides don’t become cannon fodder. Others say it’s a form of institutional cheating.
> “Give them draft picks. Give them pathways. But the salary cap should be sacred,” wrote one fan on X.
> “If you don’t give Perth a sombrero, it’ll be another Gold Coast disaster,” another replied. “Then you’ll have 5,000 in the stands and a dead market.”
What’s Next?
A formal decision on the next NRL franchise is expected before the end of 2025, with both Perth and PNG deep in negotiations with league officials, broadcasters, and commercial partners.
If approved, the salary cap sombrero would likely form part of a broader expansion assistance package — including player development funding, additional roster spots, and promotional subsidies.
But make no mistake — how the NRL handles this policy will set the tone for the league’s next era.
Will it be a fair fight? Or will new clubs be armed to the teeth in the name of growth?
For now, the sombrero debate is wide open — and the buzz around it is only getting louder.
