Things go from bad to worse for the Fratton Park outfit.
Portsmouth’s administrators have revealed the relegated Premier League club’s debts now stand at £135m.
In February, Pompey became the first Premier League club to enter administration with debts of £60m-£70m.
And in April it was revealed the FA Cup finalists, who have had four different owners this season, were £120m in debt.
The news comes on the day creditors have approved the drafting of a debt-repayment plan that will enable the club to emerge from administration.
The club is offering to pay at least 20 pence in the pound over five years, and Pompey’s current owner Balram Chainrai has said small creditors (those owed less than £2,500) and charities will be paid in full at a total cost to him of almost £200,000.
The new plan – a Company Voluntary Arrangement (CVA) – will be drawn up by the club’s joint administrators from UHY Hacker Young and distributed within 10 business days of Thursday’s meeting.
Another meeting will then be arranged within 14-28 days to approve the CVA. This will require the backing of 75% of the club’s unsecured creditors (based on amounts owed).
Portsmouth’s so-called “football creditors” must be repaid first and in full under football’s rules.
This group includes clubs still owed over £17m in transfer fees by Portsmouth, and current and former players who are owed almost £5m in bonuses, wages and image rights payments.
Chainrai will also get his outstanding £14.2m loan repaid in full but his three predecessors – Sacha Gaydamak, Sulaiman Al-Fahim and Ali Al-Faraj – will have to accept the same reduced rations on offer to the non-football, unsecured creditors.
Prominent among this group is Her Majesty’s Revenue & Customs (HMRC), whose claim on Pompey has risen from £17.1m to an eye-watering £35m in fines, taxes and National Insurance contributions.
Under the draft plan, the company Portsmouth City Football Club will be liquidated after nine months and a new one set up.
The CVA and club’s assets, including the “golden share” that enables Portsmouth to play in the Football League, will then be transferred across to the new entity. (BBC Sport)
Its hard to guess just where this will all end. The amount of money owed increases on a daily basis with more and more coming out of the woodwork on a daily basis. If the club can not deal with these debts there is the very real possibility that the club suffers another points deduction for their forthcoming season in the Championship and then they could be doomed to successive relegations.
Clearly the club does not have the big names to cash in on as they already offloaded all of those. Unless a multi billionaire comes in and digs them out of this very big hole.
What do Pompey fans think will happen next? Is there hope in the future or are the club doomed to sooner or later go completely bust?