Scott Pendlebury manager Jason Sourasis has been shut out of any involvement in the A-League soccer team Western United

Embattled sports entrepreneur Jason Sourasis has been blocked from any involvement in A-League football team Western United and the development of a sports precinct in Melbourne’s west as plans for a 20,000-seat stadium are blown up.

Sourasis declined to comment on his future at the club or the project on Wednesday, but sources close to him and the project team confirmed he would step aside once an issue regarding his tax debts was resolved.

This comes at a time when high-profile investors are lining up against Sourasis, alleging significant amounts of outstanding debt.

This week, prominent financier Ozzie Kheir said he owed him a significant sum of money from Sourasis, and Collingwood star Scott Pendlebury, a long-time friend of the entrepreneur, took him to court, accusing him of embezzlement.

Pendlebury alleges that approximately $3 million of his funds were misappropriated from his bank account by Sourasis and his company, Strategic Financial Planning.

Sourasis denies the allegations.

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Representatives of Western United and the development project met with Wyndham City Council on Tuesday to discuss a new path forward for a site in Melbourne’s west end set to be a sports, health and entertainment complex centered around a stadium for the A-League club.

Sourasis did not attend the meeting, where plans were drastically changed to include an oval for cricket and the AFLW, as well as an aquatic centre.