The announcement that three levels of government are combining to provide $40m of funding to upgrade Leichhardt Oval in Sydney is not only a major win for the NRL, but a flex of political muscle from a game that is now realising its own might.

Rugby league has long been one of the two most popular sporting codes, along with Australian rules football, but when it came to exercising political power it was the AFL out in front and then daylight. Even rugby union – by any measure less popular, culturally relevant, and capable of drawing money – outstripped its rival rugby code in currying political favour.

It was not until Peter V’landys took charge of the Australian Rugby League Commission that the code became a serious political player. The Leichhardt Oval funding shows how far the game has come.

Winning government funding to upgrade any stadium is no easy task but it is particularly difficult for a suburban ground that will never be able to offer the comforts – and match-day revenue – of major stadiums. The new Allianz Stadium is an outstanding asset for Sydney, near the CBD with everything you might expect from a stadium in 2024. The food options are plentiful, viewing lines wonderful and corporate hospitality first-class.

Allianz Stadium is a modern-day facility for all sports played on rectangular fields as well as sizeable concerts. While there was controversy around how much money the NSW Government put into the knockdown and rebuild, it was arguably necessary for a global city that has an engrained sporting culture and plays host to 15 men’s professional football teams.

An upgrade to Leichhardt Oval offers none of this. While the venue has been shaped as a new home for women’s sport in Sydney, and it has long been used for school sport in the district, Leichhardt Oval is essentially for a single NRL club, Wests Tigers, that will host six men’s matches a year. It also happens to be a ground located in a safe Labor federal seat, although the Greens have held the relevant seat at state level since 2011.

The funding is a testament to how the NRL now asserts its political clout. It was not long ago that NSW Premier Chris Minns said the state government would not fund any upgrades for Leichhardt Oval. While he was much more diplomatic in his approach, his message was essentially that the government would not fund putting lipstick on a pig. He claimed fiscal frugality but it was as much about the lack of political capital than anything. But the Minns government is now contributing $10m to the project.

The NRL traverses a unique and difficult-to-navigate path when it comes to suburban grounds. Most major sports across the globe have moved away from them. The AFL has long played all Melbourne games out of just two venues - and has the crowds to justify it. The NRL, in Sydney, has long tried to straddle the need to play at both major stadiums and suburban grounds.

Fans of teams that host games at suburban grounds tend to be incredibly attached to the venues. There is a strong nostalgia kick even if that has its limits. Leichhardt Oval has been an extraordinarily popular venue among the Tigers faithful but the facilities are not what one would expect for a professional sports facility. Charm only goes so far.

New Wests Tigers CEO Shane Richardson was very much a driving force behind the push for a Leichhardt Oval upgrade. He was not short in support from political heavyweight V’landys, who cut a deal with the Dominic Perrottet government to support the upgrade of a number of suburban grounds following the decision to abandon an overhaul of Accor Stadium. Richardson threatened - and it would not have been a hollow one - that the Tigers could no longer afford to play at Leichhardt Oval without the improvements. A lot of work has been done over the last decade to make NRL clubs profitable entitiesand there will be little sympathy from head office if they are not.

The NRL can not and should not give up on suburban grounds. There is a certain charm in going to Brookvale, Leichhardt, Belmore or Shark Park that gives the NRL a far bigger community feel than other major sports. While the NRL should not play finals and other games that will attract bigger crowds than the grounds can hold there. The suburban grounds should be used to keep the positive nostalgia and create atmosphere for low-drawing games while not capping growth or profitability.

Winning government support though, particularly in a safe political seat, is no easy task. V’landys, through sheer force of will and his close relationship with a Prime Minister who loves rugby league, has been able to pull it off, in a major win to the game and its fans.

• This article was amended on 15 June 2024. An earlier version said that Leichhardt Oval is located in state and federal electorates held by Labor. The Greens hold the relevant state seat of Balmain, while Labor hold the federal seat of Grayndler.