A FIGHT has broken out over the turf at McDonald Jones Stadium, as the state government agency that operates the Turton Road venue and the promoter of a supercross event held there last year take their dispute to the courtroom.
AUSX Events says Venues NSW has wrongly withheld ticket revenues from the Australian Supercross Championship held at the stadium on November 26, over alleged damage to the stadium's playing surface.
The matter was mentioned in the NSW Supreme Court in Sydney yesterday, where the legal team for AUSX Events applied to have proceedings expedited.
AUSX Events claims revenues from the supercross championship, which attracted almost 16,000 people, should have been paid within five days of the event being held.
Venues NSW replaced the turf playing surface at the stadium after the event.
AUSX Events' position is that any possible financial claim Venues NSW has for the re-turfing does not directly impact its obligation to pay the revenues it owes.
The company's lawyer Simon Keizer said the withheld money meant his client could not pay third party creditors - other businesses involved in putting on the event in Newcastle.
Along with the hire contract, both parties signed a "pitch covering agreement", which set-out the responsibilities for Venues NSW and AUSX Events regarding care of the playing surface before, during and after the event.
The court heard that Venues NSW alleges AUSX Events either failed to take the required steps, or did so negligently, resulting in the need to replace the grass.
"It could not be a particularly complex factual issue however we've been placed in the rather unfortunate position where we don't have particulars of precisely what it is [AUSX Events] is said to have either failed to do or to have done negligently," Mr Keizer said.
AUSX Events wants a two-day hearing but Venues NSW's legal representative said that estimate was "hopelessly optimistic".
He said his client was concerned that a possible hearing date as soon as February would not allow enough time to prepare in an "optimal way".
The court heard that Venues NSW plans to call 10 witnesses, as well as an expert.
The issue of withheld ticket revenue is the focus of the court action - there are separate proceedings underway regarding the alleged damage to the stadium playing surface. Negotiations, which were part of the dispute resolution process in the venue hire agreement, failed to reach a resolution in January.
Justice Guy Parker, SC, adjourned the matter to next week
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