AFL merchandise sparked fatal fight: court

A fight between neighbours that left one man dead from stab wounds was sparked by an argument about AFL memorabilia, a court has heard.

Wayne Bayley, 32, died after coming to blows with William James Scriven, 35, in Scriven's Traralgon driveway in 2012, the Supreme Court heard in Melbourne.

Crown prosecutors say Scriven, who has been charged with murder, told one of his neighbours, "You're f***in' dead dog. Don't sleep tonight", before the fight broke out just after midnight on December 22.

In the opening of Scriven's trial on Monday, prosecutor Michele Williams said before the fight Scriven had threatened neighbours with a knife, punched a 15-year-old and told a man he would kill him and his family that night.

Scriven was then arrested and taken to the police station, but later released and collected by his friend Samantha Warner, Ms Williams said.

Ms Williams told the jury Mr Bayley's sister Kylie Stone went to Scriven's driveway, where she got into an argument with Ms Warner, who she believed had stolen Collingwood memorabilia.

Other neighbours arrived with Mr Bayley and he and Scriven ended up in a fist-fight, Ms Williams said.

Scriven's defence did not deliver an opening address on Monday, but Ms Williams said she understood Scriven would say he was acting in self-defence.

Ms Williams said witnesses would tell the jury they saw Bayley "reel back a couple of times" from what they thought were punches.

"They weren't blows or punches. That was the accused man stabbing Mr Bayley," she said.

Mr Bayley died from stab wounds, including one that punctured his left lung, the court heard.

The trial continues on Tuesday.