The basketball association took over the running of the stadium from Bathurst Regional Council in 2012 in a deal in keeping with council’s policy of having local sporting groups run local sporting facilities.

The last lease was up for renewal on June 30 this year when council granted the association just an interim six-month extension.

That lease extension expires on December 31 and councillors voted during a confidential meeting last week not to renew it.

The Western Advocate understands the Bathurst Basketball Association has been plagued by difficulties in recent years with a number of resignations from the committee over the past fortnight.

Council general manager David Sherley confirmed there was no money owing to council from the original lease arrangements with the association but said other requirements of the contract had not been met.

One issue relates to a lack of financial reporting to council over the past five years.

However, the Western Advocate understands there is no question of financial impropriety by any party.

Councillors voted last week to give Mr Sherley the authority to negotiate first with Basketball NSW in a bid to have the state body take over the operation of the sports stadium to ensure the future of basketball in the city.

If no deal can be done, council will call for expressions of interest to run the stadium and, as a last resort, would be forced to take back the running of the stadium itself.

“The stadium is normally closed during January but we will be working closely between Christmas and New year with Basketball NSW to try and ensure the continued operation of the indoor sports stadium,” Mr Sherley said.

“The priority is to keep basketball going in Bathurst.”