WMG Holdings was gifted 62 hectares of former farmland in Tarneit by Wyndham City Council on the basis it would use the site to build a 15,000-seat stadium for the A-League club and subdivide the rest of the property to make 900 homes. The group has taken longer than expected to raise the money needed for the 15,000-seat stadium, and Western United plays home games on the site in a smaller venue that can host 4000 fans.
The property development has also not yet started, but is critical to Western United’s business model, given the football club plays in front of small crowds and has lost money in recent seasons. The entity that runs the soccer team, WMG Football Club, lost $12.4 million in the year to June 2023.
WMG Football Club’s total revenue in that year was $6.9 million; well below its $11.6 million employee benefits expense in the same year.
There is no ownership link between WMG Football Club and WMG Holdings, meaning they are separate entities. However, the two companies have common shareholders, most notably Melbourne businessman Jason Sourasis, who controls about 80 per cent of both companies.
WMG Football Club also stated in its most recent accounts that it owed $44.1 million to “related parties” such as WMG Holdings at June 2023.