A former Sussex man has been cleared of trying to blackmail Hollywood star Russell Crowe.

Club owner Malcolm Mercer's CCTV cameras captured the actor, who won an Oscar for his performance in Gladiator, in a late-night brawl outside his bar.

When Crowe heard Mr Mercer had been offered money for the footage by TV and newspaper reporters he took Mr Mercer, formerly of Shoreham, to an Australian court accusing him of blackmail.

Mr Mercer, 38, and a friend were accused of demanding AU$200,000 (about £76,000) from the star in return for the tape.

But yesterday, Judge John Williams ordered a jury to clear the men saying prosecutors had failed to prove the central charge - that the demands were backed with threats.

Mr Mercer's father, Raymond, who lives in Mill Hill Drive, Shoreham, dismissed the case as "nonsense".

He said: "This case only ever came to court because it involved a famous actor.

"My son's the innocent party.

"He's relieved it's all over because he didn't want to go to jail."

Mr Mercer and co-defendant Philip Cropper faced up to ten years in prison if convicted.

Judge Williams said: "There seems to be not much doubt in this matter that money was an object. But what the prosecution has to prove is that there was a demand for money supported by a threat."

The case has made Mr Mercer front page news in Australia, where he settled after leaving Shoreham 14 years ago.

The court heard how he captured the brawl on video in November 1999 when he spotted Crowe arguing and fighting outside his Saloon Bar in Coffs Harbour, a coastal resort between Sydney and Brisbane, near to where Crowe has a farm.

The Daily Telegraph newspaper in Australia offered AU$6,000 (£2,000) for four still images from the 24-minute tape.

Television show A Current Affair also struck a deal for footage, paying AU$12,500 (£4,200).

The court was played police recordings of phone conversations between Mercer and Cropper in which Mercer was heard saying Crowe had "belted three people, bit someone's face and ripped someone's dress off".

Raymond Mercer said his son was approached by reporters wanting to buy the footage.

He said Malcolm only then made inquiries with associates of Crowe about whether they would be interested in the tape.

Raymond said: "There was never any threat behind it. He never even spoke to Russell Crowe."

Mercer and Cropper smiled broadly as the judge ordered the jury to acquit them.

Outside the court, the pair said they would now consider mounting a case against the police for malicious prosecution.

Mr Cropper said: "We've always been of the belief that we should never have been here in the first place."

Mr Mercer grew up in The Burrells, Shoreham, and was a pupil at Kings Manor School.

He was a keen water sportsman, who canoed and surfed off Shoreham Beach.

His love of surfing led him to emigrate in 1988. He is now married with children and has taken Australian citizenship.

His cousin, Paul Mercer, said: "Not too much will surprise me about Malcolm. He's a wild card but he's an all right bloke."

Crowe, who starred in films including L.A. Confidential and A Beautiful Mind, was not present during the trial.

He did not immediately comment on the outcome. He was believed to be in Mexico shooting a film.

Last night, the actor's publicity agent, Robin Baum, was not available for comment.