West defeated Noorat in the knockout competition's final on Australia Day at Allansford, earning a $10,000 winner's cheque.

Before the competition , the association implemented a bylaw that 40 per cent of the winnings went to the MGDCA, which would then distribute the cash between its clubs.

West vice-president Shane Dycer argued that the bylaw "wasn't mentioned in an executive meeting or in a delegates meeting".

But association president Bryon Cleaver said it was clearly stated at an executive meeting as well as in the MGDCA's playing conditions and handbook, which every club receives.

An email from Cleaver to Dycer explained that "what must be understood is that entry to the Sungold Twenty20 competition was not the "right" of any particular MGDCA team but a "privilege" bequeathed on a particular team by all of the other teams within the MGDCA".

West told The Standard on Tuesday that it was threatening legal action but Dycer revealed the club was no longer pursuing it.

Dycer, who played for West in the Twenty20 competition, conceded that the club didn't want the negative publicity to overshadow the association's upcoming finals series.

Cleaver was pleased the issue was resolved.

"The relations are still quite good between West and the association," Cleaver said.

Her expected the money to be paid by the end of the week.

"This would not benefit cricket in the local area and would open up further disruption to the season," he said.

"What usually happens in these situations is that once an outcome has been achieved, everybody tends to move forward and get on with things."