Balmain Leagues legal fight continues

The legal stoush between the Balmain Leagues Club and a developer over debt may be settled out of court, with a judge ordering the parties to attend mediation.

Rozelle Village bought the club's headquarters in Sydney's inner west suburb to develop it into luxury apartments but the development has languished at the application stage for three years.

The NSW Supreme Court has heard that in that time the leagues club, which owes the developer nearly $8 million, has financially propped up the Wests Tigers NRL team and controversially sold off poker machines.

The leagues club had taken Rozelle Village to court to try to block the company from appointing a receiver or requiring it to pay back the millions sooner.

On Friday, Justice James Stevenson ordered the club and the developer to meet outside court to try to resolve the issues.

If the matters aren't resolved, the case will be back before the Supreme Court on August 4.

Last week, Justice Paul Brereton made orders blocking Rozelle Village from appointing a receiver or placing the leagues club into voluntary administration until further orders.

That injunction is still in place.

The NRL earlier this month attempted to ease concerns over the financial plight of the Wests Tigers by saying the club's future could be secured in the coming days.