NEWCASTLE Jets owner Con Constantine says he is happy to pay half the rent at EnergyAustralia Stadium if Knights management guarantee him half of all stadium-related income.
The battle between Newcastle's sporting flagships for the high moral ground at EAS intensified yesterday when the Knights called a media conference to defend themselves after claims both by Jets officials and Minister for the Hunter Jodi McKay that the A-League champions were being "unfairly treated" at the State Government-owned facility.
Knights chief executive Steve Burraston said the Jets paid about 10 per cent of the rent at the stadium, but his club was willing to negotiate a 50-50 split of all costs and profits with their round-ball counterparts.
Constantine said yesterday that he would be agreeable if certain conditions were met.
He said the Jets should receive half of the naming-rights deal with EnergyAustralia and half of the sponsorship deal with Bluetongue, which is the official beer supplier at the stadium. Constantine estimated those two sponsorships were collectively worth $1 million, although Burraston said the multimillionaire was "confused" and they were "nowhere near" that lucrative.
Asked if he would agree to meet the Knights halfway with the stadium rent, Constantine replied: "Let's go. If they are willing to operate the stadium six months of the year and I will do it for the other six months, then let's go, I've got no problems.
"If they want me to pay half, I've got no problem paying half, providing I get half of the $1 million or more they are getting from the naming rights and the beer rights . . . at the moment they're getting $1 million [a year] from the EnergyAustralia naming rights and also the Bluetongue sponsorship. That's $1 million before they even open the doors.
"So shouldn't I be entitled to half of that? If I'm going to pay half of the rent, I deserve to have half of the rights that come into it."
Burraston said the Knights, who are major tenants at the stadium and sub-let it to the Jets, paid about $1.5 million a year to hire and maintain EAS $800,000 in rent and $700,000 for general upkeep.
He said last year the Jets paid only $153,000 in rent, as well as other associated costs such as hiring security, police and cleaners.
"Currently the Knights contribute 90 per cent of the total bill and the Jets 10 per cent," Burraston said.
"I would hardly call this an unfair deal."
The Knights, however, keep any profits made from catering or alcohol sales when they host Jets home games, a situation that is the source of Constantine's angst.
Burraston said the Jets would be welcome to an even share of all income if they paid a proportionate hiring fee.
"You could argue the $1.5 million rent and maintenance should be split 50-50, because we each played 12 games last season," he said.
"Or, on a usage basis, we use the stadium for seven months and the Jets use it for six months, with a one-month overlap.
"That would suggest the Knights should contribute 7/13ths, or 54 per cent, and the Jets 6/13ths, or 46 per cent, which would equate to $690,000."
Burraston said "if the Jets paid the full rent, or $690,000, the Knights would be in profit every year and secure our long-term viability".
"It would be a much better deal for us and a worse deal for the Jets," he said.
"You can't have it both ways."
Constantine said he would also expect to choose his own catering supplier.
EAS catering is controlled by the Wests Group, who have signed a long-term agreement with the NSW Government.
"If Wests have to be there, I want to strike a deal with Wests outside of the Knights," Constantine said.
"Or I should be entitled to put it out to tender.
"If I can get another caterer who can give me a better rate, or help me make more profit, then of course I'm going to go with them."
Wests chief executive Phil Gardner said it "wouldn't worry me in the slightest" if his organisation was replaced as stadium caterers.
"It would actually be one less worry for me and all our staff, because it is a very big job down there and we make nothing out of it," Gardner said.
"We assist in running the stadium as a service to the community.
"If there is a better deal out there, and we have said this since day one, then replace us.
"That goes for the Knights or the Jets."
Gardner said he had found Constantine a "reasonable" businessman with whom to negotiate but added: "Con wants everything and wants to pay nothing for it."
Constantine said, as well as $13,300 rent, ancillary expenses meant that staging each game cost the Jets close to $100,000.
He said he could not understand why the Knights repeatedly claimed they at times had "subsidised" the Jets and did not make a profit by hosting A-League games.
"They buy a bottle of water for 25 cents and they sell it for $3.50," he said.
"You buy a glass of beer in there for $5.50, and it probably cost them $1 or $1.25.
"So how can they justify saying they are not making money out of me?"
Constantine also remains disappointed that the Knights were able to extend their lease at the stadium for another decade without a tender process.
"How did they get the lease agreement for 10 more years when the actual club has no assets whatsoever?" he asked.
"What bank guarantees were put down for them to get that lease agreement? What happens if their club goes belly-up tomorrow?"
Burraston reminded the media yesterday that the Knights were a "community-owned organisation" being asked to share a government sponsorship (the EAS naming-rights deal) with the Jets, who are privately owned.
"I think people just need to think about that a little bit," Burraston said.
Asked for his opinion on that line of argument, Constantine replied: "All I'm trying to do is minimise my losses."
McKay was hopeful the first step towards a mutually acceptable resolution would take place next month, when both organisations meet with the Hunter Sporting Venues Authority, which was formed recently to replace the International Sports Centre Trust.
"I spoke to the Knights chairman [Rob Tew] last night and again today, and there has been agreement reached that we will now go back to the table and work with the Hunter Sporting Venues Authority," she said.