The financial troubles of Portsmouth have continued with the serving of a winding up petition by Revenue and Customs. The hearing is set for February 20th, The petition relates to the PAYE for December which is approximately £800k (which gives some idea of the salary bill). Since then a further £1m in VAT and PAYE has become due for payment.
The financial troubles of Portsmouth have continued with the serving of a winding up petition by Revenue and Customs. The hearing is set for February 20th, The petition relates to the PAYE for December which is approximately £800k (which gives some idea of the salary bill). Since then a further £1m in VAT and PAYE has become due for payment.
In a statement the club admitted that ‘The period from November to January was always going to be one where the club needed owner funding.’ This would be needed to cover salaries and PAYE as well as outstanding transfer payments: ‘We knew the club would not generate sufficient funds to support itself through this period.’
It is not unusual for this time of year to be a lean one for clubs. Season tickets are paid for during the summer and many commercial sponsorships are paid for at the start of the season. However, Portsmouth faced particular challenges relating to ‘resolution of legacy issues from previous ownership and a significant working capital backlog.’ In other words, the club needed a larger than usual subsidy to keep going and this has disappeared.
The prospective Italian purchaser, who always seem to have something of the day dreaming fanatasist about him, pulled out last week. The club insists that ‘we still have a significant number of parties interested in acquiring the club who are actively pursuing their respective interests.’
No doubt, but one wonders what they will think when they scrutinise the books. There are clubs with fewer problems than Pompey on the market. As the statement admits, to put it mildly, ‘The club is in a difficult set of circumstances at the moment.’