A decision by A-League expansion side Western United not to incorporate the word 'Melbourne' in its name could cost Football Federation Australia $5 million in annual TV rights after it opened the door for Fox Sports to challenge its obligation to increase broadcast payments.

The Herald understands Fox Sports is seeking to avoid paying a nine percent increase of its broadcast deal in June 2021 despite being contractually obliged to contribute an additional $5 million if two new teams were introduced to the A-League from Sydney and Melbourne.

United they stand: Kate Roffey, Steve Horvat and Mia Shaw of the Western Melbourne Group. Credit:Eddie Jim

However, several sources suggest the Pay TV provider is intending to withhold the revenue increase after the newest A-League side announced last week that it would compete under the name "Western United Football Club" while based in Wyndham in west Melbourne while temporarily playing games in Geelong in its first two years.

It's understood that representatives of Fox Sports argued to FFA that in not being associated by name with Melbourne, Western United cannot be viewed as a team from the Victorian capital, rather as a regional club.