PNG has decided to pause its pursuit of Hudson Young after learning that their proposed deal for the Canberra player falls short of market value.
Just two days after Young expressed interest in joining the Chiefs, significant obstacles emerged in the potential transfer.
Reports indicate the Chiefs were prepared to offer Young approximately $900,000 per year if he decided to join the NRL's 19th franchise by 2028.
This amount is nearly $200,000 less than the rumored three-year contract from the Raiders worth $1.1 million annually to retain the back-rower.
Young had plans to visit PNG soon, having recovered from his Achilles injury, and was considering becoming the Chiefs' eighth signing.
However, ARL Commission chairman Peter V'landys informed club executives on Wednesday that PNG must align with market value for player contracts.
The NRL uses various methods to assess market value, including comparisons to the highest-paid players in each position and the salaries of similar athletes.
Other offers can also influence value considerations, while the NRL may permit lower salaries under certain circumstances.
Consequently, this means the Chiefs need to present a more competitive offer close to Canberra's substantial proposal.
Until now, the Chiefs believed an offer of $900,000 was satisfactory for Young.
Sources indicate they are willing to increase their offer to $950,000 annually, though that figure is still likely insufficient.
Given this situation, Chiefs officials plan to wait until at least November 1 to decide on Young's future, when he becomes a free agent.
PNG executives are also aware that they have already signed seven players and must carefully assess potential recruits with a year and a half until actual gameplay.
Other clubs have expressed worries about the Chiefs' aggressive recruitment strategy, especially the tax-free benefits available to players.
Penrith coach Ivan Cleary noted last month that it's nearly impossible to compete with the Chiefs if a player is willing to relocate there.
The implications of the NRL's stance on PNG's recruitment remain unclear, particularly as clubs search for standout players who can shift the market.
Penrith's Nathan Cleary, among several high-profile athletes out of contract next year, will be eligible to negotiate with other teams starting November 1, possibly attracting offers near $2 million.
Speaking recently, Young indicated he would only leave Canberra for the Chiefs in 2028, stating, "I have no interest in playing for another NRL club."
He added, "Sticky (coach Ricky Stuart) and I have spoken about that. It's more the opportunity of the PNG thing. My mindset is pretty open. It's a once-in-a-lifetime opportunity. I just want to make sure I am comfortable with the decision I make."