The National Rugby League (NRL) said on Friday night it has reached an impasse on an agreement which would secure the future of the Newcastle Knights.
Head of Club Services, Tony Crawford said the NRL and Hunter Sports Group had agreed on a package which would make the Knights financially secure.
He said the agreement would also ensure that the Knights jersey and logo were retained and that the team would continue to play in Newcastle.
But Mr Crawford said the Knights Members Club was holding up the agreement and preventing a resolution of the matter.
“The deal we have put forward will secure the future of the Newcastle Knights and set them up as one of the financially strongest clubs in the NRL,” Mr Crawford said.
“It’s a great outcome for the club, the players and the fans – but it is being held up by the Members Club.
“The sooner we can finalise this deal the better it will be for everyone associated with the Newcastle Knights.
“So it is disappointing that the Members Club continues to hold up the process.”
Mr Crawford said the NRL would continue to keep discussions open with the parties.
Knights CEO Matt Gidley added, "From our point of view, we just want the best possible outcome for the Club and anyone who has a view that differs from this should not be involved in the process.
"We continue to trust that the NRL will ensure we reach a resolution that achieves this objective as soon as possible. "