Scott Pendlebury manager Jason Sourasis has been shut out of any involvement in the A-League soccer team Western United

Embattled sporting entrepreneur Jason Sourasis has been shut out of any involvement in the A-League soccer team Western United and the development of a sporting precinct in Melbourne’s west as his plans for a 20,000-seat stadium go up in smoke.

Sourasis declined to comment on his future at the club or with the project on Wednesday, but sources close to him and the project team confirmed he would step aside after an issue with tax debts had been resolved.

It comes as high-profile investors line up against Sourasis, alleging significant unpaid debts.

This week, leading financier Ozzie Kheir said he was owed a substantial amount of money from Sourasis, and the entrepreneur’s longtime friend, Collingwood star Scott Pendlebury, has taken him to court, accusing him of misappropriation.

Pendlebury alleges nearly $3 million of his funds were misappropriated from his bank account by Sourasis and his company, Strategic Financial Planning.

Sourasis denies the allegations.

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Representatives for Western United and the development project met with Wyndham City Council on Tuesday to discuss a new path forward for a site on Melbourne’s western fringe, which had been earmarked as a sport, health and entertainment complex centred around a stadium for the A-League club.

Sourasis did not attend the meeting where the plans were drastically changed to include an oval for cricket and AFLW as well as an aquatic centre.