Portsmouth is to enter administration on Friday unless a firm offer is made for the club by then. This is unlikely as none of the three prospective bidders are in a position to complete that quickly. By waiting they could also acquire a debt free club at a reduced price. One complication is that the Fratton Park freehold is apparently held by the club’s latest owner, Balram Chainrai, so any new owner would have to conclude a rental agreement with him.
Portsmouth is to enter administration on Friday unless a firm offer is made for the club by then. This is unlikely as none of the three prospective bidders are in a position to complete that quickly. By waiting they could also acquire a debt free club at a reduced price. One complication is that the Fratton Park freehold is apparently held by the club’s latest owner, Balram Chainrai, so any new owner would have to conclude a rental agreement with him.
Administration will mean that Portsmouth will incur a nine point penalty, making relegation almost certain, but the club’s chances of escaping relegation were not that good anyway. At least the club will now be able to complete its fixtures, avoiding any possibility of the title or Champions League places being affected by striking out Pompey’s results. The winding up order will now be suspended and it is likely that the tax authorities will be obliged to accept a small proportion of the money they are owed. Those who really lose out from an administration are often small businesses.
Any new owner will have to reflect on what is a viable business model for a club with a stadium capacity of 21,500 in one of the less prosperous areas of Southern England. The club’s wage bill is £37m this year and was £52m next year and this will have to be cut back in the Championship.