Nicholson is an important part of the planning for Rio. However unless some common ground is found, he won't be there.
Both parties have entrenched positions. Nicholson has fallen out with senior team management, understood to include coach Erik Duvander. He wants to prepare his way without being obligated by team protocols.
ESNZ say that won't happen. Team comes before individual. And there they sit. Who blinks first.
High Performance Sport New Zealand boss Alex Baumann is monitoring developments and is disappointed in what he's seeing.
Baumann a former Olympic champion swimmer for Canada, has an appreciation of how fragile the dynamics can be in making a successful team of athletes. Discussions have been held between both parties and Baumann. His view is there is going to have to be "some give and take, and part of that is [Nicholson] working in some way with the rest of the team".
"We'd love to see Andrew on the team for Rio, but not at all costs. There is a balance."
Baumann is in charge of the distributing of Government money to sports bodies. He makes no apology for the fact it's a tough, performance-driven business, which can lead to tears.
Now, let's say New Zealand have targeted as a bare minimum, a place on the podium at the team event in Rio. But a Nicholson-less New Zealand finish, say, sixth when his presence would have greatly enhanced the chances of winning a medal.
Funding is locked in until Rio. But whether it would remain at the same level in that scenario is another story altogether. And that's why this matters.
Baumann prefers to leave finding a solution up to the two parties.
There's no immediate sign of rapprochement. It may be some form of mediation is required.
The standoff continues as the British eventing season hits full swing. Riders, full of the joys of an English spring, are out to enhance, or entrench, their Rio claims.
There's any number of reasons this needs to be sorted out, and sharpish.
