Article Taxonomy: Administration

Portsmouth FC face liquidation once again after Balram Chainrai’s Portpin vehicle withdrew its bid for the club. Portpin blamed the administrators for spending £12m of parachute payments on their fees and payments to players.  They also complained about negative criticism and lack of support from the fans of the club.

The crisis at Portsmouth Football Club is a bit like the crisis in the eurozone.  It never goes away, it flares up regularly and it never gets resolved.  In one case, the future of a currency is at stake: in the other, the future of an historic football club with a dedicated following.

Portsmouth City Council is expected to approve a £1.45m 12 month loan to help fans bid for Pompey.  The money will only be made available to the Pompey Supporters’ Trust if there is no other commercial alternative to bringing the club out of administration.

Tough conditions are expected to be attached to the loan.   The club and its assets have to be bought for £7.68m which includes provision for the full and final settlement of the football creditors.   This requires agreements with all players on high wage contracts.

Balram Chainrai hopes to secure a deal to take Portsmouth out of administration and avoid a threatened liquidation which has looked increasingly close.   It would be the second time he has bought the club.  He agreed a company voluntary arrangement to pay credtors 2p in the pound last month while he is owed £20m.

Former Portsmouth manager Harry Redknapp has promised to do what he can to stop Portsmouth going out of business.  Unless the club’s finances can be sorted out by August 10th it will have to close.

Redknapp has said that he will speak to former player Kanu who claims that he is owed £3m in unpaid wages.  Redknapp says that he understands why players want money they are owed, but if the club folds they will get nothing.

Portsmouth FC are moving closer to liquidation.   SOS Pompey, a Portsmouth supporters; group, has made a last-ditch plea to players to take pay cuts in an attempt to stop the club from going out of business.   It is understood that eight players have yet to reach agreements with the club over unpaid salaries.

‘This is the end game,’ Bob Beech of SOS said.  ‘Some players were excellent and listened to what we said; others weren’t interested.’

Portsmouth have been told that they must accept a 10 point deduction if they are to play in League 1 next season.   What is more a limited proportion of the secured debt must be transferred to the new company.

All football debts must be paid in full unless alternative arrangements are made and the club faces restrictions on playing budgets for the next five seasons.