It looks as if Portsmouth football club is going to close. Talks with main creditor and former owner Sacha Gaydamak have broken down and it is likely that the administrator will now liquidate the club.
Portsmouth has suffered from mismanagement by successive owners. Given the dedication of Pompey fans, it is likely that they will form a phoenix club. But there may yet be an eleventh hour rescue.
It looks as if Portsmouth football club is going to close. Talks with main creditor and former owner Sacha Gaydamak have broken down and it is likely that the administrator will now liquidate the club.
Portsmouth has suffered from mismanagement by successive owners. Given the dedication of Pompey fans, it is likely that they will form a phoenix club. But there may yet be an eleventh hour rescue.
A statement issued by the club said: ‘Unfortunately, despite the new owners fulfilling all the requirements of the Football League and the creditors, and agreeing and signing up to the required terms of the purchase of the club, at the 11th hour the goalposts have been moved by Mr Gaydamak and this has now made the deal impossible to complete.’
‘Put simply, despite being offered full payment for the secured part of his debt in accordance with the financial plan approved by the Football League, this morning Mr Gaydamak has demanded a very significant up front cash payment in order to allow the deal to proceed by releasing his security. All this is in spite of his lawyers going to Paris Friday morning specifically for the purpose of witnessing his signature to the document agreed Thursday.’
‘It is neither in the interests of the club nor its unsecured creditors for such a ransom payment to be made, particularly where the payment is being demanded by one of the authors of the club’s current circumstances. In addition, and equally importantly, all of the business plans submitted and approved by the Football League would be fundamentally damaged by such a requirement placed on the club by Mr Gaydamak.’