Embattled sporting entrepreneur Jason Sourasis has been excluded from his involvement with the A-League soccer team Western United and the ambitious development of a sporting precinct in Melbourne’s west. His plans for a 20,000-seat stadium have effectively collapsed, marking a significant setback for the club and its supporters.
Sourasis declined to comment on his future with the club or the project on Wednesday. However, sources close to him confirmed that he would step aside following the resolution of a tax debt issue. This decision has been in the works for some time, with Sourasis stepping down as chief executive and chairman of the club in late September, while still retaining a directorship for the time being.
Financial Turmoil and Legal Battles
The change in leadership comes amid mounting pressure from high-profile investors and allegations of substantial unpaid debts. Leading financier Ozzie Kheir recently claimed he was owed a significant amount by Sourasis. Additionally, Collingwood star Scott Pendlebury, a longtime friend of Sourasis, has taken legal action against him, accusing him of misappropriating nearly $3 million from his bank account through his company, Strategic Financial Planning. Sourasis has denied these allegations.
Representatives from Western United and the development project met with Wyndham City Council on Tuesday to discuss a revised plan for the site, initially intended to host a sport, health, and entertainment complex centered around the A-League club’s stadium. Sourasis was notably absent from this meeting, where the plans were significantly altered to include facilities for cricket, AFLW, and an aquatic center.
Project and Club Under Financial Strain
The Western United project has been financially beleaguered, recently facing an $8 million tax bill from the Australian Tax Office (ATO) due to unpaid debts. Despite these challenges, both the club and the project holding company have so far avoided formal liquidation as stakeholders work towards a financial resolution.
Western United announced in September that project partner Johnson Control had agreed to settle the tax debt, offering a potential path forward for the project and the club. Sourasis, however, faces personal legal action from the ATO over unpaid tax debts, much of which relates to a director penalty notice for taxes not paid by the club or the 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
Wyndham City Council remains optimistic about the site’s potential, with Rossiter assuring that there is no financial risk to ratepayers for the land designated for the stadium under state planning controls. The council has commissioned an independent review of the development agreement and governance structure, with recommendations expected to follow.
Sourasis also holds a significant stake in Hemisphere, a top-tier player agency representing notable athletes, including Pendlebury. The AFL Players Association, responsible for agent accreditation, is reportedly investigating any potential implications for its members, though it has not officially commented.
As Western United navigates these turbulent times, the club has been placed into “hibernation” and will not compete in the A-League this year. The resolution of financial issues and leadership restructuring will be crucial for its future viability and the realization of its stadium dreams.
