WA Treasury did not believe Tony Sage's Perth Glory deserved any compensation from taxpayers for disruptions to nib Stadium from its redevelopment.
The revelation in Parliament yesterday appeared to catch Sport and Recreation Minister Terry Waldron out. He said he was not aware of it.
Shadow government accountability minister Rita Saffioti asked Mr Waldron if he could confirm, "after refusing to disclose this on previous occasions", that Treasury opposed the State paying compensation to Glory because it would ultimately benefit from $95 million of improvements to the stadium.
"I'm not aware that Treasury advised against it," he said.
Ms Saffioti then quoted from a letter Department of Sport and Recreation acting director-general Alex Watt and VenuesWest chief executive David Etherington sent to Mr Sage on December 18, 2012 that amounted to a "first and final offer" to settle Mr Sage's claim.
"It should be noted that Treasury officials believe no compensation should be paid due to the benefits the ground improvements will bring to Perth Glory," they wrote.
Mr Waldron said there was no doubt the redevelopment would benefit all users.
"The compensation to Tony Sage was (based on) advice There were reasons for the compensation. I think it was a fair amount and it was done the right way," he said.
Mr Sage had been seeking $1.04 million for reduced revenues associated with the removal of some corporate facilities, displacement of some members to a lower-priced category, signage and less capacity.
The State accepted some elements of the claim and paid Mr Sage $400,000 compensation and a reduction in some venue costs of about $20,000. Glory also won a $500,000 sponsorship from Government agency Healthway.
Last year Mr Waldron told Parliament the compensation decision and Healthway sponsorship were "completely separate issues".
The letter from Mr Watt and Mr Etherington to Mr Sage notes the DSR canvassed the Healthway sponsorship "with our minister" and offered to assist to progress it.