The Western Melbourne Group project, backed by Scott Pendlebury and other sports stars, is facing liquidation with $75 million of investor money at risk. Former manager Jason Sourasis is at the center of the controversy, with legal action and allegations of misappropriated funds.
The ambitious plan by Jason Sourasis , former manager of AFL star Scott Pendlebury , to construct a major sporting and entertainment complex on the western outskirts of Melbourne is facing imminent collapse. The Western Melbourne Group (WMG) project, along with the associated A-League club Western United, is expected to be placed into liquidation as early as Thursday.
This development marks a significant setback for Pendlebury and numerous other investors who collectively invested a substantial $75 million in the Tarneit-based project, which never advanced beyond the planning and promotional phases. The news comes amid a legal battle initiated by Pendlebury in the Supreme Court of Victoria, alleging that Sourasis misappropriated $2.2 million of Pendlebury's funds, the majority of which were purportedly channeled into the WMG project. The potential liquidation underscores the financial fragility of the undertaking, despite the efforts of WMG project shareholders to secure millions of additional funds to present a last-ditch offer to creditors and investors. The fate of the project now hinges on a Federal Court hearing on Thursday, where the Australian Taxation Office is pursuing liquidation of the businesses due to outstanding debts.\Adding to the complexities, the project enjoyed backing from a constellation of sporting luminaries, including two-time Brownlow medalist Adam Goodes and fellow AFL players Dyson Heppell, Jy Simpkin, Josh Battle, and Mason Wood. Tennis star Thanasi Kokkinakis and former NBA player Dante Exum also participated as investors. The looming appointment of liquidators from McGrathNicol will trigger an extensive investigation into WMG’s financial affairs, with the objective of determining any potential returns for creditors. Western United, the A-League club, is currently in hibernation for the 2026 season due to its financial struggles, making the impact of liquidation even more pronounced. The prospects for investors to recover their investments in the liquidation proceedings are bleak, given the considerable sums invested through the Sourasis-managed Sayers Road Trust. Legal filings from Pendlebury’s lawyers in the Supreme Court of Victoria indicate that a significant portion of the alleged $2.2 million misappropriated by Sourasis from Pendlebury’s bank account was directed towards the WMG project. The initial hearing for Pendlebury's civil claim against Sourasis is scheduled for Friday, with the purpose of establishing a timeline for the case. Sourasis claims to have had Pendlebury's permission for each withdrawal and has provided messages as evidence.\The broader financial ramifications of Sourasis' business dealings are progressively unfolding, revealing a pattern of financial distress. The expected liquidation of WMG would also mean the loss of the A-League team Western United’s football license, though, could be reallocated to a new entity. Several prominent figures have been engaged in discussions in recent weeks about potentially acquiring the license, with the aim of immediately injecting new capital. This legal action adds to a collection of creditors and claimants who have claimed losses connected with the A-League entrepreneur, whose financial hardships were first reported in June. Along with the considerable investment in the WMG project through the Sayers Road Trust, additional millions were secured from investors. An administrator’s report analyzing Sourasis' activities has alleged that investors may have suffered further losses across other projects as his business holdings crumbled due to unpaid tax liabilities. The full extent of Sourasis’ financial challenges is only gradually coming to light. A key business of his, Jaszac, had to enter administration recently, underscoring the severity of the situation. This situation highlights the perils of investment in complex, high-profile projects and raises questions about the due diligence performed before significant investments were made. The news represents a blow to the sporting and business community in Melbourne, casting doubts on future projects and highlighting the importance of thorough financial oversight
Scott Pendlebury Western Melbourne Group Jason Sourasis Liquidation A-League
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