NSW Sports Minister Stuart Ayres says it would be "extraordinary" for the NRL grand final to be moved from Sydney over a row about upgrades to suburban stadiums.
The NSW government's decision to back out of plans to upgrade several suburban stadiums across Sydney put it at odds with Australian Rugby League Commission (ALRC) chair Peter V'landys.
Mr Ayres attributed the financial impact of the recent flood crisis for the decision not to proceed with funding the agreement.
Mr Ayres, speaking from the rebuilt Sydney Football Stadium on Tuesday, said the government had spent more than $1.5 billion on sporting infrastructure since 2014.
That figure includes the $828 million redevelopment at Moore Park, the $300 million CommBank Stadium at Parramatta and funds for ground upgrades, he said.
He said projects such as those "massively benefits the NRL", and he was sure the grand final would stay in Sydney.
"I think if the NRL walked away from the home of its sport here in NSW, the state that the grand final has always been played in, with the exception of the COVID grand final from last year, that would be an extraordinary move," Mr Ayres said.
"I'm very confident that the NRL will keep the grand final here in NSW. They know it's the right thing to do."
Mr V'landys has lobbied the state government to pay for the upgrade of heartland grounds including at Manly, Leichhardt, Cronulla and Penrith.
It is understood Mr V'landys used the threat of moving the NRL's decider interstate as a bargaining chip during a meeting with the government in April.
Asked when leaving that meeting if the grand final would stay in Sydney, he said: "At this stage, yes."
There has only been one year when the premiership was not settled in Sydney — that came in 2021 when the game was moved to Brisbane due to COVID-19 restrictions in NSW.
Mr Ayres today said the government would honour its commitment to build a new stadium in Penrith, his home electorate, as the development also formed part of its three cities plan for Sydney.
"We also know that we've always got limitations on what we can do," he said.
"We are continuing our engagement with the NRL. We want to be able to upgrade suburban infrastructure but we want to be able to do that when the fiscal capacity of the state allows for it."
Premier Dominic Perrottet said the government was facing huge costs associated with the recovery effort from NSW's devastating floods, which ranged from the state's north to Sydney.
"The government has just received the Floods Inquiry Report, which will likely require a significant cost to the taxpayer, and I note right now there are still 1,366 people without a home in NSW due to flooding," he said.
"It should come as no surprise that my top priority is therefore supporting those devastated by the major floods across NSW."
The Premier noted that the government had already invested significantly in "every aspect of rugby league", from grassroots programs and matches in regional NSW to centres for excellence for the West Tigers, Newcastle Knights, Manly Sea Eagles, South Sydney, Sydney Roosters, Canterbury-Bankstown, St George-Illawarra and Parramatta.
"Sydney will always be the home of rugby league and if Peter V’landys wants to take the Grand Final away from its home then he can explain that to the fans," Mr Perrottet said.
Mr Ayres said the government would continue talks with the NRL over what funds were available.
"These are the tough decisions governments have to make," he said.
"It just might mean that we have to wait a little bit longer before we can spend additional money on those venues."
