Guy Sebastian tells court how he discovered alleged theft by former manager Titus Day

Guy Sebastian's performance fees have been revealed in court. Photo / Getty Images

Australian music star Guy Sebastian's performance fees have been revealed in court as the reality TV judge stepped into the witness box on Wednesday for the first time at a major embezzlement trial.

Sebastian's former manager Titus Day, 49, is on trial in the NSW District Court after he pleaded not guilty to 50 counts of fraudulently embezzling royalty payments, performance fees and ambassadorship fees and 50 alternative charges of larceny or stealing.

Police allege Day, a former celebrity agent to stars such as Sophie Monk, Grant Denyer and Stephanie Rice, embezzled about A$900,000 ($993,000) in royalty, performance and ambassadorship funds Sebastian was entitled to between 2013 and 2020.

Sebastian, a judge on Channel 7's hit reality show The Voice and former Australian Idol winner, claims he discovered the theft when examining bank accounts after the pair had a bitter falling out and parted ways.

During the final part of his opening address, Crown prosecutor David Morters SC told the court that there were "shortfalls" in fund amounts transferred by Day to Sebastian, including the right slice of the A$494,360 ($545,760) the singer earned as a support act for music superstar Taylor Swift's Australian concerts in 2013.

The court was told that Sebastian charged A$49,000 ($54,000) for an Allianz Stadium performance during a British and Irish Lions rugby tour; however, "no moneys were remitted" to Sebastian.

The court was told that in 2017 Sebastian commanded about A$54,000 ($59,600) to perform at a wedding in Jakarta, A$10,000 ($11,040) for a wedding at Sydney's Doltone House, A$66,000 ($72,860) to appear at a McDonald's conference and A$33,000 ($36,400) to perform at a Harvey Norman event.

As part of an arrangement between Day and Sebastian, money paid to the singer would go to Day's management business 6 Degrees.

Day was then tasked with deducting the agreed portion of commission and paying Sebastian the rest of the money owed.

"Mr Sebastian will tell you that the accused made undertakings to him that he [Day] was going to transfer an equity interest in 6 Degrees from as early as August 2013," Morters said.

"He [Day] was going to transfer 10 per cent of the company 6 Degrees to Mr Sebastian in recognition of the importance that Mr Sebastian played in his company."

Titus Day, right, arrives at Downing Centre Local Court on May 03 in Sydney, Australia. Photo / Getty Images

Morters also revealed Sebastian's wife Jules would be called to give evidence during the trial.

He said she was a client of Day's and "chased payment" from him.

The court was told that she was to be paid A$15,000 ($16,560) but was given A$6403 ($7068).

Day's barrister Dominic Toomey SC told the court the case against his client was "misconceived" and suggested police could have been "seduced by Sebastian's high profile".

"When we dig deeper into the evidence and we go beyond a superficial view of it you will see there is an answer to each charge," Toomey told the jury.

"You might even wonder ultimately whether there was some ulterior purpose on the part of Sebastian and police in the pursuit of criminal charges."

Toomey said Day and Sebastian had been involved in a civil case in the Federal Court when police "unceremoniously" arrested Day and laid the criminal charges.

"In those proceedings in the Federal Court both men claimed that the other owed him money.

"It was in the Federal Court that what was essentially a business dispute ought to have remained."

On Wednesday afternoon Sebastian told the court how he and Day were introduced through Day's wife Courtney, a former Sony music executive.

"Titus said that he was starting a new company … and asked if I would go with him to 6 Degrees," Sebastian said.

"He would refer to me as his foundation client and a client that he needed to start a new company.

"I also needed him."

After Sebastian agreed to end his relationship with his former agency 22 Management, he joined Day's new agency.

"I was right in the middle of releasing music, the Like it Like That album," he said.

"I was signed to Sony Music, I had numerous No. 1 records and I think it was two No. 1 albums at the time, two No. 1 singles, top five, top-10 singles as well.

"It's hard talking about … I was very proud of what I had achieved at that point definitely."

Sebastian told the court that "basically everything" he did professionally was done by Day when the pair worked together.

After the pair parted ways the court was told that Sebastian's new manager sought to set up a fresh royalties agreement with another company.

"Upon doing so there was a discovery I was already signed up to a neighbouring rights company by the name of Premier Muzik," Sebastian told the court.

When shown a copy of the contract with Premier Muzik, Sebastian agreed his signature was on it but said he could not recall signing it.

"There were often times where I would be presented things to sign," he explained.

"It wasn't uncommon for contracts or agreements to be put in front of me and for me to sign. One of the benefits of my manager [Day] was he was a contract lawyer, so I trusted that if he put something in front of me he wouldn't do so unless it was ready to be signed."

Sebastian will return to the witness box on Thursday when the trial continues.