The Newcastle Knights have raised the stakes in their EnergyAustralia Stadium turf war with the Jets, declaring they pay $1.5 million annually in rent and maintenance and the A-League soccer champions contributed just $153,000 last year.
Frustrated by what he described as "misinformation" regarding the Knights' position as EAS tenants, and their ongoing impasse with the Jets over a sub-lease agreement, Knights chairman Rob Tew instructed his chief executive, Steve Burraston, to reveal how much the Knights and Jets pay towards stadium use and upkeep.
The Newcastle Herald has obtained a copy of a draft media release the Knights were considering making public today.
Jets chief executive John Tsatsimas said last week his club was tired of being treated like "second-class tenants" by the Knights.
Recently appointed Minister for the Hunter Jodi McKay supported that stance and said the Jets "have been unfairly treated in regards to their use of the stadium".
Mr Burraston said the Knights' integrity had been questioned and he and Mr Tew wanted to set the record straight by explaining that the National Rugby League club paid $800,000 in rent to the NSW Government last year and $700,000 in maintenance.
"In 2007, the Jets made a contribution of $153,000 in total only 10 per cent of the Knights' contribution. We need to be clear that this does not include match-day costs such as security, police, cleaners etc, which is incurred by each organisation individually," he said.
He said the Knights used the stadium for seven months, from February to August, and the Jets for six months August to January.
"Based on number of home games played, 12 each, you could argue the $1.5 million rent and maintenance should be split 50-50," he said.
"Or, based on training and playing utilisation in terms of months, with one month overlap, the Knights should contribute seven-thirteenths or 54 per cent ($810,000), and the Jets six-thirteenths, or 46 per cent, which would equate to $690,000.
"Currently the Knights contribute 90 per cent of the total bill and the Jets 10 per cent. I would hardly call this an unfair deal."
The Newcastle Herald understands the Jets owed the Knights almost $100,000 at one point last year but that amount has since been paid. Mr Burraston would not comment about that figure but said the Jets currently owed the Knights more than $70,000.
"Our organisation struggles from year to year. We didn't make a profit last year and we will struggle again this year," he said.
"In the last two years under that scenario, we have actually carried the Jets' cash flow without penalty. At this time the Jets have in excess of $70,000 outstanding to the Knights and although we are probably facing a loss ourselves, and cash flow becomes an issue for us at this time of year, we have not applied any pressure on the Jets to fulfil those obligations."
Mr Burraston said the agreement the Knights had put to the Jets regarding stadium use for the current A-League season had been authorised by solicitors representing the Hunter Region Sporting Venues Authority, and the only significant input from the Knights was a sub-letting charge of $13,318 a game.
He said important elements of stadium income the EnergyAustralia naming-rights sponsorship, which the Knights signed in 2001 then extended in 2006 until 2011, Bluetongue beer pourage rights and Cadbury-Schweppes food and beverages were all Knights sponsorships.
"The Knights commit considerable expense and resource to such sponsorships, which include player appearances, corporate functions, suites and tickets to home matches, match-day sponsorships and ticketing to major events such as State of Origin matches and the NRL grand final. The Jets contribute to none of these costs," he said.
"However, we have always been clear in several meetings with the Jets, the previous Trust and at times with Government representatives present, that we would be willing to share the advertising components, the pourage and catering profits that come from Jets games should the Jets be willing to pay their full share of the cost."'