Western United are set to avoid liquidation and keep their hopes of returning to the A-Leagues alive after securing the funds required to pay off a heavy tax debt.
The financially embattled club was wound up by the ATO in August, after it had already been stripped of its A-Leagues licence, before vowing to fight that decision.
Facing liquidation amid a $15.5 million debt to the Australian Tax Office, United’s ownership West Melbourne Group had an interlocutory hearing in the Federal Court on 11 December.
Following mediation it was agreed provided payment was completed by 7 January, orders to wind up WMG Football Club (United) would be set aside.
Major lender Johnson Controls was earmarked to pay the required $15.5 million to cover the ATO debts, and AAP understands the funding was set to come through by Wednesday’s deadline.
AAP has contacted Western United and the Australian Professional Leagues (APL) for comment.
At the December hearing, it was noted Lederer Group Pty Ltd had also proposed to step in with further funding.
The founder of Lederer Group is billionaire Paul Lederer, who recently returned to his post as Western Sydney Wanderers chairman.
The road ahead remains unclear for the beleaguered club.
United have no players and few staff on the books as they sit out the ongoing season
Facing a tax bill amid concerns over unpaid wages and superannuation – and while under a FIFA registration ban – Western were stripped of their A-Leagues licence by Football Australia (FA) in August.
The wind-up order followed, and men’s and women’s players and staff were all left in limbo and unable to attempt to find new clubs until the APL put the club into hibernation on September 6.
Multiple men’s and women’s players had to relocate interstate to continue their careers while others missed out on professional contracts altogether.
It is unclear how many players would be keen to return to or join Western if they were able to revive their teams, given the protracted uncertainty they were put through.
Former Western ALW midfielder Adriana Taranto, who now plays at Adelaide, told AAP in October the players were “very much let down with how the club went about it”.
Ex-ALM skipper Ben Garuccio said the timing of the hibernation was “probably the worst timing it could have actually been” and urged football’s governing bodies not to allow a similar situation to happen again.
ALM coach John Aloisi had technically still been contracted to United despite the hibernation, but is expected to be named coach at Chinese Super League club Chengdu Rongcheng.
In spite of the uncertainty, Fan representative group chair Daniel Hoogstra said he welcomed the news and that it has come as a “huge relief” to the club’s supporters.
“This is an important step and I’m hopeful that this provides a foundation for rebuilding trust with fans and securing the clubs return to the A-League next season,” Mr Hoogstra said.
“There’s still a long way to go and many other issues to resolve, but the fans remain passionate and stand ready to support the club through this next chapter.”
