Wyndham Council has assured ratepayers that it is protected from any financial fallout following the announcement on Friday that A-League Club Western United had been stripped of its licence.
The embattled club is on the brink of folding just three years after their first championship.
United has been in financial turmoil for months, with players and staff paid late in April, May and June while superannuation payments were also delayed.
United has also been unable to register players due to a FIFA ban related to an ongoing dispute with former striker Aleksandar Prijovic.
United, led by chairman Jason Sourasis, had hoped their issues would be solved by a planned takeover by American group KAM Sports, which was announced in May – but that is yet to be completed.
It meant the club’s current ownership were unable to satisfy the financial criteria required to maintain their licence, and now have seven days to appeal the decision.
Wyndham Council’s director of corporate services Mark Rossiter described the news as “disappointing“ particularly for Western United fans.
Mr Rossiter said council would reassess its relationship with the club’s owner and that the club’s Tarneit-based home, which is owned by council, is safe.
“We understand the club still has some appeal options and Wyndham will use that time to consider what this means for our partnership with Western Melbourne Group,“ he said.
“It is important to note that council and ratepayers are completely protected by the robust commercial and financial contracts that are in place between council and Western Melbourne Group.
“Land earmarked for the Wyndham Stadium Precinct – including Ironbark Fields – is owned entirely by council.
“No land has been gifted or sold to Western Melbourne Group as part of this partnership.
“We continue to believe this is a unique initiative that has the potential to unlock an extraordinary level of public value, and we remain committed to realising this vision.”
Earlier in the day a FA spokesperson said in a statement “Football Australia is able to confirm that the First Instance Board (FIB) – an independent body established under the National Club Licensing Regulations – has convened and determined that Western United FC has failed to meet the criteria required to be granted an A-League licence.“
“As such Western United FC’s license has been withdrawn, effective immediately.
“Western United FC can appeal this decision to the Appeals Body established under the regulations on certain grounds outlined in the regulations.
“This outcome, while regrettable, reflects Football Australia’s ongoing commitment to upholding the integrity, stability, and fairness of competitions for all clubs, players, and stakeholders.“
United were granted an expansion licence in 2018 and entered the league ahead of the 2019-20 season.
“We’ve been advised by Football Australia on the determination by FIB to withdraw Western United’s conditional licence,“ Australian Professional Leagues executive chairman Stephen Conroy said in a statement.
“This is an FA, AFC and regulatory process, and we won’t comment further until the regulatory process and any appeal has been completed.“
