Hunter Sports Group chief executive Troy Palmer confirmed to the Newcastle Herald on Thursday that the Jets would take legal action against the FFA for their part in the Culina insurance row which has rocked the club.

The row emerged after Culina, who originally injured his knee on Socceroos duty in January 2011 joined Newcastle from Gold Coast prior to the 2011-12 season. Culina broke down again in pre-season ruling the new Jets marquee out for the entire campaign and possibly beyond.

It's understood the Jets learned shortly after signing Culina they wouldn't be able to insure him, as his previous club Gold Coast had no insurance for the player. The Jets claim the FFA were negligent in allowing Gold Coast to not have appropriate insurance for Culina.

However, FFA Head of Corporate Affairs and Communications Kyle Patterson hit back at their claims in a press statement on Friday.

“The Newcastle Jets knew it had the obligation to take out insurance for Jason Culina, as evidenced by the fact they tried to do so,” Patterson said.

“The Jets’ decision to proceed to contract Jason without insurance, knowing he was injured at the time, was their decision.  These circumstances don’t relieve them of their obligations to him under the playing contract they signed at that time.

“It seems the club is now trying to pass this responsibility back to FFA.  The idea that FFA, the administrator of the competition, should effectively take the risk for the salary payments of a marquee player that any club chooses to sign is untenable.”

FFA acknowledged that the Newcastle Jets have been meeting their obligations under Culina's contract and that the Socceroo is working hard on his rehabilitation in order to return to action in the A-League.

FFA moved to clarify the facts around insurance for marquee players in the Hyundai A-League stating, any club that decides to contract a marquee player does so knowing they are responsible for all costs, including insurance, and any liabilities arising from that engagement.

The statement added the cost of marquee players, as with the benefits, rest with the individual club, not the FFA or the Hyundai A-League or other clubs, some of whom have made the decision not to sign marquee players.