The Celtic Crusaders are strongly tipped to land a Super League franchise licence this summer but Murphy believes this would not be a wise move on the RFL's part.
He is among the many coaches, players, administrators and supporters waiting with interest to see just who will land a licence and be handed Super League status.
The rugby league legend's own preference is for a 16-team competition but he does wonder about the inclusion of a Welsh club.
"I really do have reservations about a Welsh club," he said. "I watched the Crusaders at Leigh last Sunday and they are a good side but have far too many Australian players in their team in my view.
"They might as well go out and sign New South Wales and play under this banner.
"I just can't understand why there should be rules for some clubs regarding overseas players and a set of different ones for others.
"I know there are very strong calls for the Celtic team to be in Super League but don't forget rugby union is currently stronger and more popular than ever in Wales right now. I just can't see it working in the long run."
Murphy says he would not be surprised to see the knock-on effect of the licence application system ending up in the court rooms.
He knows only too well any clubs who miss out, and those who could lose their top-flight status, will naturally not take things lying down.
He added: "The RFL have got to be very careful with what they decide. They must be aware of what they have signed into, what is planned and what is going to happen."
Selection for Super League will transform a club's status overnight.
The Bridgend-based Celtic Crusaders certainly appear to have strong support within the rugby league headquarters at Red Hall.
Salford's move to Barton greatly appears to support their case while Leigh and Widnes remain serious contenders.
If Salford miss out and are told to reapply in three years time, Murphy wonders if the multi-million-pound Barton project will be scaled down.
It appears to be Celtic plus one from Salford, Widnes and Leigh. Whether any current clubs in Super League will be demoted is unlikely.
What do you think? Have your say.
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Murphy is right. Now is not the time for a Super league franchise in Wales. In addition to what he contends, there is not the fan base presently to support a Super League team.The Cru should be encouraged to prepare to enter the Super League in 2012. In the meantime they can build a fan base of appropriate proportions and at the same time, establish a team comprised mainly of Welsh players. Torred
Salford City Reds new stadium over at Barton has got nothing to do with our franchise bid to gain entry into Super League.The plans are set in concreat and have been for quite sometime well before the Super League franchise system was even thought of.
I firmly believe the Reds will be playing in Super League in 2009, along with Widnes Vikings, I agree with Mr Murphy about Celtic Crusaders but I'm afraid Leigh Centurions have very little chance of being invited this time around into the elite league.
Bolton greyhound, Salford bring so much to Super League don't they. They have never had and will never have large attendances regardless of where they play. They have had time to establish themselves in SL and have failed miserably, but for the chairman bank rolling them they would be more than likely in NL2 by now. The sensible option would be to give clubs like Leigh and Widnes the opportunity to establish themselves in Superleague. Understably crowds at Leigh are poor although season upon season of second grade rugby accounts for this. The club has been mismanaged and let down badly by people calling themselves directors in the past. I strongly feel that they deserve a chance especially with the fantastic new stadium already in place.