AppId is over the quota
AppId is over the quota
Staff and players at Fratton Park have still not been paid for January, with the club’s bank accounts frozen following a winding-up order from Her Majesty’s Revenue and Customs.
The hearing for the order was due to be held next Monday, but that is likely to be postponed if Portsmouth’s administration application is endorsed at a High Court hearing on Friday.
Portsmouth’s latest financial crisis arose when their parent company, Convers Sports Initiatives (CSI), went into administration last November following the arrest of their main shareholder, Vladimir Antonov.
The tax bill is between £900,000 and £1.2 million but Peter Kubik, of the club’s financial advisers UHY Hacker Young, admitted that Portsmouth were facing other demands for payment, and face the threat of having their electricity cut off.
“Administration would allow us to get the bank account unfrozen and pay the electricity board, who’ve constantly been threatening to cut us off,” he said. “The club are in the process of seeking an administration order.
“They are finding it very difficult to trade. Once the administration order is in place the bank accounts will be made accessible again. We are aware that administration carries an automatic 10-point deduction by the Football League.”
In February 2010, Portsmouth became the first Premier League club to enter administration and were deducted nine points. The loss now of 10 points in the Championship would leave Michael Appelton’s team in 21st place and outside the relegation places only on goal difference.
Kubik said there was some interest in Portsmouth from potential buyers but they would want to wait until the club were in administration.
Portsmouth came out of administration in 2010 via a Company Voluntary Arrangement and have so far paid off all their football creditors. However, they still owe 20p in the pound to their unsecured creditors and around £15 million of secured credit to former owner Balram Chainrai.
The Premier League’s parachute payments have been going directly to football creditors, but Portsmouth still stand to receive £28 million from that pot before the end of the 2013-14 season. It is estimated that around £11 million would secure Portsmouth’s long-term future.
“The parachute payments will effectively deal with the obligations of the CVA,” said Andrew Andronikou, the joint administrator for CSI. “We need someone to come in and deal with working capital. On a PnL basis [profit and loss] — on a pure performance basis — the club is washing its face.
“The alternative to keeping the club alive is that the creditors will receive nothing and Portsmouth will be deprived of an institution that the city is built around. It’s essential to the economy and wellbeing of the city.”
A club statement yesterday confirmed Portsmouth’s High Court application to enter administration.
“The club will not enter administration until the court endorses the application and appoints an administrator,” said the statement.
- Portsmouth apply to enter administration and face points penalty for second time AppId is over the quota AppId is over the quota...
- Future long-term secure Portsmouth after the parent company of the Championship club to enter administration CSI funds have been helping to support their recovery, and...
- Portsmouth issued petition by HM Revenue and Customs over an unpaid tax bill AppId is over the quota AppId is over the quota...
- Chelsea v Portsmouth: FA Cup rematch a chance for Pompey chimes to ring again AppId is over the quota AppId is over the quota...
- Rangers fans ‘shocked’ and ‘devastated’ by move towards administration AppId is over the quota AppId is over the quota...