A-leagues club given fresh hope in legal bid to survive
Embattled football club Western United has received a legal lifeline and is hoping to return to the A-League after reaching a deal to avoid liquidation by the Australian Taxation Office.
The club was placed into liquidation by the ATO in August following the revocation of its A-Leagues license and subsequently vowed to fight the decision.
Facing liquidation, United owner West Melbourne Group held an interim hearing in the Federal Court on Thursday morning.
Judge Penelope Neskovcin instructed the parties to mediate, stating that this was the “last chance” for a solution.
A few hours later, the parties returned, reaching an agreement in the afternoon. Orders to liquidate WMG Football Club (United) will be canceled provided payment is completed by 7 January.
Major lender Johnson Controls is set to pay the $15.5 million needed to cover ATO debts.
It was also noted at the morning’s hearing that Lederer Group Pty Ltd offered to provide more funding.
The founder of the Lederer Group is billionaire Paul Lederer, former Western Sydney Wanderers chairman.
Mr Lederer remains a shareholder and club director in Wanderers but stepped down as chairman last June.
The road ahead remains uncertain for United, who remain a club in name only, with no players and a small number of squad members in the ongoing season.
Facing a tax bill over unpaid wages and pension concerns and under a FIFA registration ban, Western were stripped of their A League license by Football Australia (FA) in August.
The closure order followed, leaving male and female players and staff in limbo before the Australian Professional Leagues put the club into hibernation ahead of the current seasons.
The club welcomed Thursday’s development as it continues its bid to return to the top level of Australian football.
“Today’s result is a positive step forward for Western United Football Club,” the club said in a statement to AAP. he said.
“This provides a clear pathway for the club to reset as we move into the next phase of our future and eventually return to the A-League.
“We are deeply grateful for the patience and resilience of our members, partners, and staff during this challenging time, as well as the support of Wyndham City Council, Stephen Conroy, and APL.
“Further details and additional comments on the progress of the club and the wider project will be shared in due course.”
