This after the Kaapse Klopse Karnival Association (KKKA), which holds an events permit for the 2019 carnival, offered to share the stadium with the Cape Cultural Carnival Events Committee (CCCEC).
The latter, however, rejected the compromise and are seeking relief in the Western Cape High Court on Friday.
The KKKA is the official organiser of carnival events and received over R4 million in funding from the City.
The CCCEC had requested Athlone Stadium for its competitions. Last year, the CCCEC used Florida Stadium in Ravensmead, but said it was too small to accommodate their competitions.
Both parties had agreed last Friday to draft a memorandum of understanding for the sharing of Athlone Stadium.
However on Monday, the CCCEC - which is affiliated to the rival Cape Town Minstrel Carnival Association, the previous rights holders of the carnival - rejected the deal.
In a letter to the KKKA, lawyer for the CCCEC, Nazeer Parkar, said the KKKA's proposal did offer not profit sharing and logistic.
"The core issues agreed upon between the parties around aspects of adjudicators, sharing in the profits and losses, the establishing of a committee to deal with the logistics around the road marches as well as the competitions at the Athlone Stadium etc. ... are not reflected in your draft," read the letter.
Muneeb Gambeno, director of the KKKA, said they were willing to accommodate the CCCEC at their carnival, and certain details had to be “thrashed out”, including the issue of a beer garden, which the KKKA does not allow.
But the groups could not agree to settle out of court.Daily Voice