Embattled sporting entrepreneur Jason Sourasis has been excluded from any involvement with the A-League soccer team Western United and the ambitious development of a sporting precinct in Melbourne’s west. This decision follows the collapse of his plans for a 20,000-seat stadium, as financial and legal troubles mount.
Sourasis declined to comment on his future with the club or the project on Wednesday. However, sources close to him and the project team confirmed that he would step aside once issues related to tax debts are resolved. The decision for Sourasis to exit the project has been in the pipeline for some time. In late September, he resigned as chief executive and chairman of the club, although he retains a directorship for now.
Financial Struggles and Legal Battles
The shift in leadership comes as prominent investors turn against Sourasis, citing significant unpaid debts. This week, financier Ozzie Kheir claimed he was owed a substantial sum by Sourasis. Additionally, Collingwood star Scott Pendlebury, a longtime friend of Sourasis, has taken him to court, accusing him of misappropriating nearly $3 million from his bank account through Sourasis’s company, Strategic Financial Planning. Sourasis denies these allegations.
Representatives of Western United and the development project met with Wyndham City Council on Tuesday to discuss a new direction for the site in Melbourne’s western fringe. Originally planned as a sport, health, and entertainment complex centered around the A-League club’s stadium, the revised plans now include an oval for cricket and AFLW, as well as an aquatic center. Sourasis was notably absent from this meeting.
Financial Turmoil and Project Revisions
The project and club have been financially burdened by an $8 million bill from the Australian Tax Office over unpaid debts. Despite these challenges, both entities have avoided formal liquidation as stakeholders work towards resolving the financial crisis. The club, where Sourasis remains a director, has been placed into “hibernation” and will not compete in the A-League this year as it seeks to stabilize its finances.
In September, Western United announced that project partner Johnson Control had agreed to cover the tax debt, offering a potential path forward for both the project and the club. Sourasis is also facing personal lawsuits from the ATO over unpaid tax debts, largely stemming from a director penalty notice for taxes not paid by the club or project group.
“Council remains deeply committed to this unique initiative, which has the potential to unlock an extraordinary level of public value,” said Mark Rossiter, Wyndham Council’s director of corporate services.
Future Prospects and Community Impact
Two sources indicated that Sourasis’s official departure from the club would occur once the tax debts are resolved. While he continues as a director, the project is set to undergo a restructure that will effectively remove him from a governing role. Wyndham Council, meanwhile, reassures that there is no risk to ratepayers for the land designated for the stadium under state planning controls.
In August, the council commissioned an independent review of the development agreement for the project. Rossiter stated that council officers would provide recommendations and advice once the review is complete. Sourasis also holds a majority stake in Hemisphere, a top-tier player agency representing major athletes, including Pendlebury. The AFL Players Association, which oversees agent accreditation, has declined to comment but is reportedly investigating potential implications for its members.
This development marks a significant shift in the trajectory of Western United’s stadium project, with implications for the local community and stakeholders involved. As the situation unfolds, all eyes will be on how the club and its partners navigate these challenges and what future solutions they propose to ensure the project’s viability and success.
