NRL chief executive Andrew Abdo phoned bid chief Peter Cumins this week to reject his consortium's plans to resurrect foundation club North Sydney Bears in Perth.
The shock call came two days before October 10, when the Bears were expected to be announced as the NRL's 18th team, and stemmed from the consortium's decision not to offer a licence fee in their proposal documents.
The Bears had not stumped up for a licence fee given an estimated $26 million in start-up costs and what Cumins felt was between $10 million and $20 million in value being created for the NRL by establishing a West Australian team.
The Dolphins were not required to pay a licence fee when they entered the league in 2023, given the club's financial strength.
NRL CEO Andrew Abdo told the Western Bears consortium their plan had been rejected. (Dave Hunt/AAP PHOTOS)
"Unfortunately I see (the bid) on life support, disappointing as it is," Cumins told SEN on Thursday.
But since absorbing the initial shock of having their bid rejected, Cumins said the Bears were committed to imminently renegotiating with the NRL.
Cumins previously estimated a licence fee would be in the vicinity of $20 million, but is hopeful of reaching a compromise with the league to enter the league in 2027 as planned.
"Certainly that is our hope still," he said.
"But we've got to be very conscious of the fact that if there is a (licence) fee to be paid and it's significant, we've got to make sure we can honour the commitment that we make.
"That's what we're working on at the moment.
"I'm hopeful that we can have further negotiations with the NRL and come to some compromise on this licence fee.
"We will be going back to the NRL to make an offer."
Cumins' previous experience working with the Western Reds' entry into the Australian Rugby League in 1995 had cautioned him against paying exorbitant fees at the outset.
"We had to pay, for example, to fly a first and reserve grade team to Perth for every game as well as our own cost to fly to the East Coast," he said.
'That was a crippling legacy for the club. I'm not prepared to do the same this time."
The Australian Rugby League Commission is expected to enter negotiations with the West Australian Government should the private consortium fail to stump up an adequate licence fee.
Cumins was sceptical of the idea, and WA Premier Roger Cook has previously distanced the Government from the bid.
"I wish them luck because I don't believe State Government's role is to partner up on operating rugby league clubs or sports in general," said Cumins.
"If it doesn't pan out, we're still here and keen to support.
"From my perspective, I don't want to put any obstacles inthe way of getting a team into Perth. That's the only reason I'm involved in this."
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