Wyndham council has assured ratepayers that it is protected from any financial fallout following the announcement that A-League club Western United had been stripped of its licence.
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.
Wyndham’s corporate services director 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.
“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,” he said.
“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.
A FA spokesperson said in a statement that the First Instance Board (FIB) – an independent body established under the National Club Licensing Regulations – had 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“As such Western United FC’s license has been withdrawn, effective immediately.”
United were granted an expansion licence in 2018 and entered the league ahead of the 2019-20 season.
The club has vowed to fight the stripping of their A-Leagues licence,
“The club will be exercising its right to appeal the decision immediately, with confidence of a positive outcome as the sale of the club and injection of capital from KAM Melbourne continues to progress.
“We wish to assure every single member, supporter and the broader Australian football public that we will fight for our club with the same spirit, belief and resilience that has defined us from the very beginning.
“We will continue to stand together as we have done in the face of adversity in the past, and we will exhaust every avenue to continue being able to represent our community with pride.
“As this is a regulatory process, the club will be making no further comment at this time.”
