Netball has been stripped of almost $18m in federal government funding after a key proposal to the Australian Sports Commission was deemed not satisfactory. The blow comes as Netball Australia (NA) and top players remain divided over a pay dispute crippling the sport.

Sport minister Anika Wells confirmed the money was no longer set aside for netball and would instead be redirected to a pool for women’s sport in general. “I’m focused on outcomes for female athletes and quite simply, this money needs to be directed to areas I’m confident positive outcomes will happen,” Wells said.

Under the new arrangements, netball could still access funding through a competitive tender process, but other sports will also be allowed to pitch for it.

The funding had been earmarked for the code since a 2019 election pledge by then-sport minister Bridget McKenzie and prime minister Scott Morrison promised netball $30m. At the time, NA said it would “fund numerous initiatives – from grassroots through to high performance – which aim to secure a strong and long-term future for the sport”.

Just over $12m has already been used on programs including digital initiatives and the successful bid to host the Netball World Cup in 2027.

The Sports Commission has been seeking a formal submission from NA for the funding for 18 months, and it was received six weeks ago. However, the business case from NA was described as not “sufficiently robust”, according to a statement from Wells’ office.

The government provides almost $4m in annual funding to the code, and remains open to further funding for the sport.

“Netball is too important for it to not be successful and we will continue funding discussions with a view to ensuring the 2027 World Cup provides the sport its Matildas moment,” Wells said.

NA chief executive Kelly Ryan said the sport hasn’t given up on the funding and her organisation intended to make an updated submission that involves the 2027 World Cup.

“Importantly, the minister for sport has confirmed the government is still open for discussion and Netball Australia will re-submit an updated business case,” Ryan said.

“We will continue discussions with the federal government and provide them with a proposal that enables their investment in the growth of the netball community that is made up of over one million people.”

The announcement comes on the same day the Australian Netball Players’ Association (ANPA) president Jo Weston was brought to tears at a press conference in Melbourne when asked about the turmoil surrounding this year’s Netball Australia awards night. “It’s been really hard, and all of us just want to be able to move forward with what we think is fair and reasonable for our playing group.”

ANPA and NA plan to meet on Friday to negotiate an end to the long-running dispute. “We want to feel like we’re valued, we’re respected and listened to, and hopefully tomorrow when we’re in the room we’ll be able to get something done for our players,” Weston said.

ANPA chief executive and former Diamonds captain Kathryn Harby-Williams said she had been through many emotional conversations with players over the past two months as she revealed the toll of the pay dispute.

“I speak to players and I have had players sobbing, I’ve had them weeping,” Harby-Williams said. “Players have slept in their cars, players have had to move out of their homes and move across the country back to their families. That’s the toll that this is taking on these players.”

The players rejected an offer from NA on Wednesday that Harby-Williams’ described as a “publicity stunt”. “For it to be put on the table now is confusing because it was a part-deal,” Harby-Williams said. “I thought a page was missing because there was no reference to revenue-sharing or the commercial arrangement.”

Ryan conceded the ongoing pay battle could impact the 2024 Super Netball season – due to begin in April – and have a lasting impact on the sport in Australia. Ryan said she is unsure whether players have a full appreciation of netball’s financial struggles following the COVID-19 pandemic.

“We’re still in a financial tightrope,” Ryan told SEN on Thursday. “We’re trying to make sure we make the right investments in the right areas, that includes our players, but minimising the impact on us longer term. We want to get from where we are today to out of this financial situation as quick as we possibly can.”

NA had hoped to reach a deal on Wednesday with a new offer that included an 11 per cent pay rise back-dated to 1 October, the day after the last collective player agreement (CPA) ended, while the groups continue to work on the details of the agreement.

The governing body agreed to the union’s demands for a first-ever revenue-share proposal, which had been a sticking point, however they want players to return to work while the final terms of the model are negotiated. But the players want the deal done before they are back at training, with ANPA board member Maddy Turner saying they are seeking 15 per cent of revenue above what is forecast from any new sponsors. “It’s not much but it feels like a big fight to get what we want, but the players are all united,” the NSW Swifts defender told Channel 10’s The Project.

The parties have been at loggerheads since February with Super Netball players boycotting the annual awards dinner last Saturday, with the main award named after Ellis. Diamonds players attended under the threat of legal action, which prompted former captain Ellis to accuse NA of treating its national stars with “callous disregard”.

Former Diamonds captain Ellis was a host on The Project and backed the players’ stance on the latest offer saying it was “offensive”. “I find the media release which has come out this afternoon with this offer ... that we’re going to give the players almost everything that they want, it’s a little bit offensive,” Ellis said.

“The players are standing strong and saying no, we want to talk about this revenue-share model and this partnership model,” Ellis said. “My only concern now is the relationship is so poisoned between the two parties that we may not end up with any kind of meaningful agreement in the near future.”

Ellis added that the federal government may have to step in to run the sport. In the latest proposal NA boosted their offer of a guaranteed total increase in benefits to 23 per cent ($1.45 million). Minimum salaries will rise from $40,000 to $46,600 with ongoing increases over the term of a three-year CPA, pushing the average wage to $86,500.