Western United FC Shut Down Over $18M Debt

A-League club Western United has been ordered to shut down after failing to repay debts nearing $18 million, ending hopes for a stadium-led revival in Melbourne’s west.
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Western United FC Shut Down Over $18M Debt

The future of Western United as a top-flight Australian football club is uncertain after the Federal Court ordered the wind-up of its parent company WMG Holdings and related businesses due to unpaid debts. This decision disrupts a major plan to drive a billion-dollar property development in Melbourne’s western suburbs with a new privately funded stadium.

Once considered a rising force in the A-League, the club entered financial trouble over the past year. The Australian Taxation Office had applied for the liquidation of WMG Football Club, which holds the club’s A-League licence, due to outstanding tax liabilities. Although there were attempts by the group to secure new funding and delay proceedings, the court refused any further time extensions.

During the court hearing, four companies tied to the club, including the parent group, were ordered into liquidation, effectively quashing immediate rescue attempts. This follows the collapse of a proposed $100 million investment from a US property developer, which aimed to build Australia’s first privately owned football stadium along with housing and retail areas on a 62-hectare site.

However, there remains a glimmer of hope. The previously interested investor, who had withdrawn due to the club’s financial obligations and council red tape, has expressed possible renewed interest if the club can return free of debt. There is also speculation about an appeal supported by a new US lender, which could reopen talks.

For fans and stakeholders, the closure marks a significant halt in Western United’s journey from an emerging A-League contender to the centrepiece of a landmark suburban development. With the club stripped of its licence and unlikely to compete next season, the focus now turns to whether fresh investment and a clean start could revive its ambitions.

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