Done! Portsmouth docked nine points
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WE AV NO HOPE ... Pompey boss Grant is ready for bleak news over survival chances
PORTSMOUTH will be relegated from the Premier League this week.
The Fratton Park club has finally admitted defeat in its long-running fight for survival and met with Premier League chiefs yesterday to inform them of their decision.
Andrew Andronica from administrators Harper Young has already been lined up to move in tomorrow to try to settle debts of more than £70million, including £18m owed to the taxman.
Once Pompey's controversial move is confirmed, the Premier League will convene a board meeting and then deduct nine points from their paltry total of 16, leaving them with only seven and so doomed to the dreaded drop.
A fire-sale of players is likely to follow in the summer with the administrators considering appointing a top agent - possibly Kia Joorabchian or Pini Zahavi - to oversee the clearout.
Speculation that three parties were interested in riding to the rescue was exaggerated and all hopes of finding new owners to take over from Balram Chainrai have evaporated.
Other attempts to refinance the club's huge debts and to raise new capital, including negotiating a £10m loan from West Ham's new owner David Gold, also collapsed.
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Pompey is like Darlington and Chester CIty. Bankrupt and at the bottom of their respective divisions. Tragic case.
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the fault of the previous owner and manager lar. the previous owner, on knowing that the titanic is sinking, quickly sold off his stakes and then ran as far as he can. the previous manager, overspend on players they can ill afford, thought that the owner actually bankrolled using his own money, but haiz, sad. another leeds.
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Well, Leeds are on top of League I this season. Hopefully they return to EPL really soon.
Anyway, this isn't the first time Portsmouth are facing insolvency. When Terry Venables was there they were in fairly deep shit too.
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Looks like John Anthony Portsmouth Football Club Westwood will have to see his beloved team play in the Coca-Cola Championship next season. Sad for him.
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Portsmouth docked nine points as administration plunges cash-strapped Premier League towards relegation
Portsmouth have been sucked down the Premier League plughole after they are docked nine points for going into administration.
The cash-strapped club have been unable to find a new buyer and administration will see them plummet down to just SEVEN points - all but confirming their relegation to the Championship.
A statement on the club's website revealed the club entered administration at 10.20am. The administrators will hold a press conference at 3pm.
Dark clouds: Fratton Park could soon be hosting Championship football
Under-fire chief executive Peter Storrie has said he will tender his resignation when the administrators sell the club.
Portsmouth will be left 17 points from safety with just 12 games remaining this season. Andrew Andronikou, of Hacker Young, will be installed as chief administrator, triggering a meeting of the Premier League board early next week to ratify the nine-point deduction.
The winding-up process started by HM Revenue and Customs, due before the High Court next week, will be suspended automatically.
Hard times: Portsmouth are in crisis
Pompey must enter a Company Voluntary Agreement for unsecured creditors by the end of the season or start next season with another deduction of at least 15 points.
The new reality will start when the players fly on budget airline Flybe for �47.99 each to the game at Burnley tomorrow.
Yet, the 112-year-old club have a better chance of survival, with four potential buyers circling, waiting for administration.
Owner Balram Chainrai, who was persuaded to invest £17million by predecessor Ali Al Faraj, has agreed to keep funding the club and pay for administration.
'Having the club wound up is not an option as far as we're concerned,' said spokesman Phil Hall. 'The partners have put £17m into the club and have a responsibility to ensure Portsmouth FC survive.'
Rage: An angry fan confront chief executive Peter Storrie on Friday
A major sell-off of players and the prospect of a long period of rebuilding in the Championship now looms.
Some finance experts believe the administrator may have to terminate player contracts now to save cash.
Simon Wilson, partner of restructuring experts, Zolfo Cooper, said: 'It seems certain that Portsmouth will be relegated and will need a complete restructure.
'Depending on the level of committed funding available the administrator may need to terminate players' contracts to reduce outgoings because the possibility of selling players outside of the transfer window has already been denied by the Premier League.'
Loyal: Portsmouth fans have watched their side slump this season
Meanwhile, FIFA are set to discuss Portsmouth's plight at their next executive committee meeting on March 18.
Today's news was expected after eight days which signalled the club's fate. Last Thursday they asked the Premier League for permission to sell players outside the transfer window, which was rejected two days later.
On Sunday chief executive Peter Storrie revealed a South African consortium were pursuing a deal to Portsmouth - but nothing came of it.
Current owner Balram Chainrai confirmed the club would go into administration if they did not find a buyer by today - and despite New Zealand-based businessman Victor Cattermole admitting his interest in buying the club, a deal was not done in time.
High times: Pompey won the FA Cup in 2002
Chainrai's spokesman, Phil Hall, said: 'He hasn't made a penny out of the club. He was asked in October to put in £17m as a loan, for six weeks, and he agreed to do that.
'At the end of six weeks he expected his money to be returned and that didn't happen. He gave them a bit of a grace period but the loan wasn't repaid so in January he took over the shares of the club. He put another £2m in this week to make sure the staff were paid.'
Asked how Pompey ended up in administration, Hall continued: 'The club's debt is too great. He (Chainrai) was also given false promises when he came in. He was told the club had certain debts but didn't know that Premier League rules say football debts become a priority, that money owed on transfers must be paid first.
'He asked the questions and was given answers and assurances that turned out not to be true. Having put £17million of his own money in unfortunately he found the club
facing a winding-up order on Monday.'He had a choice of allowing the club to go into administration, for someone to go in and try to bring it back into a stronger financial position. He feels he's a victim - the club have been overwhelmed by these debts and he is a reluctant owner.'
However, Hall believes there could be a satisfactory outcome for Chainrai and the club.
He added: 'He's been left holding the baby but he wants to do what's right...he feels this is the right solution. Buying a business with a huge debt around its neck is not an attractive proposition - but there are parties who say they are interested. Some of them may be interested if they are on a stronger financial footing.'
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this is like tossing a boulder into the well after they've fallen in
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Sooner or later Man Utd and Liverpool will follow suit. Their huge player wages are tearing them down...
Soccer star players are the true winner in this mad persuit for trophy..
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Haiz while relegation is almost certain now I do hope that Portsmouth will continue to fight for their pride and not do a Derby (i.e. be only the second team in Premier League history to get relegated in March)
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Haiz suay
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They were sold to a wrong Sheik! Imagine if Man City's owner bought Portsmouth instead, they wouldnt be in this situation.
I doubt Portsmouth will survive the drop. The players would now worry about not getting their pay and thus, affected in the play field.
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drop nine points for administration? whats that?
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Originally posted by purpledragon84:
drop nine points for administration? whats that?
Get themselves 9 points deducted for entering adminstration, i.e. failure to keep control of the financial status of the club, thus letting it spiral out of control and hence the debt keep increasing. Since no one wants to invest in Portsmouth, bo bian have to hire adminstrators to help keep the debt under control, which is why it is called adminstration.
First time happening to a Premier League club, although down at the Championship and League One/Two such occurences are common. Read Crystal Palace 09/10, Southampton 08/09, Leeds 07/08 for some of the examples of teams who have entered adminstration as well.
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Fratton Park is going down, my fair lady...
Sulaiman should never have passed that fit-and-proper persons test.
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It seems like the killer blow would be taxes. Leeds had the same issues with HMRC back in 07. Loss-making concern still have to pay so much tax?