The WA Rugby League should be the only bid for a Perth-based team in an expanded National Rugby League.

South Sydney Rabbitohs boss Shane Richardson said a bidding war between the WARL and a franchise headed by Perth Glory owner and mining millionaire Tony Sage and former Balmain Tigers legend Benny Elias would damage Perth's chances of having a new club.

The WARL, which has spent three years planning for the expected 2015 expansion, was stunned after Sage confirmed a rival bid - using the model of businessman Nathan Tinkler, who owns NRL side Newcastle Knights and A-League outfit Newcastle Jets.

Richardson, who will bring the Rabbitohs to Perth for their game against the Brisbane Broncos next month, said the WARL bid should stand alone.

"You can't just parachute in. You have to be able to land the plane as well," he said. "You can't just come in with no knowledge of rugby league and no knowledge of running a rugby league club.

"There has to be credibility and knowledge. You have got to have a passion for the game of rugby. You are likely to lose money at the start and nobody loses money forever.

"If it wasn't for the WARL the game would not be in the healthy position it is in right now."

Sage has pumped $10 million into Glory but said he was not prepared to pour any money into an NRL franchise. "I don't want to be involved financially. I can get people to invest," he said. WARL chief executive John Sackson, whose involvement in the game stretches back to Super League when he was corporate development manager, questioned Sage's ability to attract sponsors.

"He has a sporting team at the moment and I don't see too many new sponsors involved in that," he said. "A case of picking up a team and plonking it here with no real connection or concern or care for the grassroots of the game, that's not our view.

"It's not just about coming in and buying a team in the NRL. It goes much deeper than that."

Sage said a meeting with NRL chief executive David Gallop yesterday had gone "really well" but Sackson said: "He's had a meeting with David Gallop. We've been meeting with David Gallop for nearly three years. It takes more than a meeting with David Gallop to win a franchise."

Sage said that he had been approached by Elias, who is on the Glory board.

"Someone approached Benny, he approached me. He says he has the football side sorted out. He needs someone to front it," Sage said.

Perth could host a Test match in October between Australia and New Zealand at Patersons Stadium.

It is believed the NRL has been negotiating with the State Government for several months.

"You can't just parachute in. You have to be able to land the plane as well."