On the eve of this year's State of Origin grand final, a Papua New Guinean colleague gifted me two bright "bilum hats" — woven beanies in the traditional style of his home in the highlands of PNG.

Against a striking maroon background, they proudly exhibit the words "QLD" and "Maroons", a poignant manifestation of how deeply interwoven rugby league is with Papua New Guinean culture.

In a country that is about as diverse as they come, rugby league is omnipresent.

It was introduced around the 1940s by Australian soldiers — during a period of colonial rule — and went on to become the beloved national sport of an independent Papua New Guinea.

Joram Yalo, a 26-year-old player from the Highlands, puts his country's affinity for rugby league down to the very nature of the game.

Others believe it is linked to the fact that several Papua New Guineans have excelled in the sport, playing at the highest levels in Australia and making their home country proud.

Whatever it may be, a shared passion for rugby league is something both the Australian and Papua New Guinean governments have capitalised on while negotiating PNG's entry into the NRL.

'It's clever strategising'

The idea of a PNG NRL and NRLW team is not a new one.

Australia's closest neighbour has had its sights set on joining the comp for decades, but previous attempts failed to gain traction.

Then, in 2022, PNG decided it was time for another crack. The timing was perfect.

The country launched its bid right before an Australian federal election that saw Anthony Albanese become prime minister, with a promise to rebuild relationships across the Pacific.

Labor had spent much of its election campaign criticising the previous Australian government for dropping the ball when Solomon Islands struck a wide-ranging security pact with China.

Anthony Albanese, an unabashed Rabbitohs supporter, almost immediately began throwing his weight behind PNG's NRL aspirations, eventually negotiating the deal that has been landed on Thursday.

The "soft power" aspect to this sports diplomacy initiative has never been a secret. But in the game of regional politics, Australia went in for the hard tackle.

Linked to the NRL deal is a separate security pact that will see China blocked from gaining a significant military or policing presence in PNG — something the Australian government has been concerned about.

If it does, Australia could withdraw its funding and sink the PNG side.

To some, it looks like astute diplomatic footwork.

Oliver Nobetau, a Papua New Guinean research fellow at the Lowy Institute's Pacific Islands Program, says Australia capitalised on the opportunity to offer PNG something no-one else can.

"This is something the PNG government wants, and Australia has been able to leverage that … it's clever strategising, I guess, on the part of Australia," he said.

To make it happen, Australian taxpayers will front up $600 million over 10 years to support the new team, with some of the funding to go towards player development in PNG and around the Pacific.

The PNG government's contribution will be around $150 million for infrastructure, developing elite players and growing participation in the sport.

How China looms over this deal

There are other costs for the Pacific's largest nation.

The security deal is sure to upset China, one of PNG's most important trade and development partners.

Prime Minister James Marape has sought to distance the sporting announcement from the security agreement, claiming the NRL deal doesn't come with strings attached.

Far greater than any regional security threat to PNG is the risk of domestic instability, and it's in that context that Marape has pitched the NRL as an exercise in national unification.

"We stand as the most diverse nation on the face of planet Earth, over 830 spoken languages," he said at Thursday's press conference.

While that diversity is celebrated, it also presents challenges for the country.

Fighting and violence — which often make headlines in PNG — usually boil down to conflicts between people from different tribes, cultures, language groups and regions.

Marape's vision of using the NRL as a vehicle to bring peace to his country has even seen him likened to a modern-day Nelson Mandela, the late South African anti-apartheid activist and politician.

But will it have the desired impact? Oliver Nobetau is sceptical.

"In my view, what needs to be addressed first is trying to delve into an understanding as to why there's a lot of conflict that's happening," he said.

"It may not be because there is a lack of a rugby team there."

The other hope behind the NRL — from a PNG government perspective — is to challenge negative perceptions about the country from outside its borders.

"More people, more supporters, will come and they'll see for themselves that it's not as bad as they perceive," says Wapu Sonk, chair of the PNG NRL bid.

"Travel will be easier between the two countries and people-to-people connectivity becomes easier, and hopefully the two countries are stronger, better friends."

How locals feel about the deal

On the streets of Port Moresby, some citizens worry that negative stereotypes could be reinforced if their government doesn't do enough to address issues like crime, poverty and access to services.

"Papua New Guinea is struggling," said Port Moresby resident Brondy Kay.

Some believe the money being poured into setting up a PNG squad could be better spent on health, education and justice.

But many, many others are embracing the exciting news — with their sights set on 2028, when the inaugural game will be played in Port Moresby.

Between now and then, there is undoubtedly a lot of work to do.

A team name will need to be chosen, players recruited, coaches appointed, visas granted, stadiums refurbished, grass laid, and many, many more bilum hats made.