The $600 million mega deal for a Port Moresby-based team to enter the NRL competition is a powerful reminder of how sports diplomacy can connect two countries.

With half the code’s players having Pacific Island heritage and NRL being the national sport of Papua New Guinea, the long-awaited joint announcement by Prime Minister Anthony Albanese and PNG Prime Minister James Marape that the nation will play in the NRL competition from 2028 is recognition of our shared past, present and future.

Of course, there are broader questions facing the new 10-year NRL franchise, including attracting and retaining players, and tax exemptions and salary caps. But the PNG government’s commitment to a $200 million “mini-city” in Port Moresby to ease safety concerns is a strong down payment.

The Herald’s Matthew Knott, Adrian Proszenko and Michael Chammas report that an escape clause allows the Australian government to terminate the agreement and withdraw financial support if PNG strikes a security or policing pact with China or other rival nations.

Albanese and Marape tip-toed around mention of China when unveiling the deal on Thursday. But of course, it is all about China. Those opposed to mixing sport and politics should regard it as a bargain should it prevent PNG from following the Solomon Islands’ mounting embrace of China, including a concerning and sweeping security and economic agreement.

The Albanese government has been scrambling to counter China’s growing influence in the Pacific with sports diplomacy. It transcends borders, fosters mutual understanding and promotes shared values. Australia has long practised such soft diplomacy through PacificAus Sports. We supported PNG’s national rugby league and netball teams to compete at major events, helped PNG athletes prepare and compete at Olympic and Commonwealth Games, and we continue to deliver sports for development outcomes through the Team Up program.

Previous Coalition governments took their eyes off the Pacific, allowing China to slip under our guard. For instance, 2021 statistics presented to the Lowy Institute show Australian health grants to Port Moresby fell to a quarter lower than 2011 levels, while education grants plummeted 44 per cent. The Albanese government has been ramping up other diplomatic efforts with the Pacific and South-East Asia amid rising tensions with China, including $1.9 billion to build security and people-to-people ties with the Pacific, expanding visas for Pacific workers and funding the redevelopment of a shipyard in Solomon Islands. Under a security guarantee to the remote atoll nation of Tuvalu, which is threatened by rising sea levels, Australia has offered permanent residency to 280 Tuvalu citizens each year.

In terms of value for money in warding off China, admitting a team from the world’s largest Melanesian nation into the ranks of the NRL is not only a good idea, but represents far greater bang for bucks than some other initiatives.

The landmark $600 million deal may seem like a lot of money, but in terms of Australia’s defence and security budget, $60 million a year is just a drop in the Pacific Ocean.