Latest update: 26/02/2010 

- football - Premier League


Debt-laden Portsmouth go into administration

Debt-laden Portsmouth go into administration

Indebted Portsmouth on Friday officially became the first Premier League club to go into administration, suffering a double blow with an automatic nine-point deduction, meaning likely relegation. The club did, however, escape closure.

By News Wires (text)
 

REUTERS - Portsmouth traded their short-term Premier League status for the hope of long-term survival when they went into administration on Friday.

The debt-ridden south-coast club had been due back in the High Court next week to face an adjourned winding-up order from the British government's Revenue and Customs department.
 
That hearing could have led to the closure of the 112-year-old club but they will now continue in some form.
 
In a hearing earlier this month, Portsmouth had been given time to secure new funding or a new owner but they failed on both fronts and instead became the first Premier League club to go into administration.
 
Already seven points adrift at the bottom of the league, they will now suffer an automatic nine-point deduction, almost certainly condemning them to relegation.
 
Portsmouth have raised almost 100 million pounds ($153.4 million) in player sales since they won the FA Cup in 2008 but are still some 70 million pounds in debt.
 
They issued a statement on their website confirming that they officially went into administration at 1020 GMT.
 
Portsmouth's latest owner Balram Chainrai, their fifth in a year, took the decision to go into administration on Thursday after talks with four interested groups failed to find an agreement for a takeover.
 
Administrator Andrew Andronikou, of insolvency experts UHY Hacker Young, will now set about investigating the club's finances and paying debtors.
 
He will hold a news conference at Portsmouth's Fratton Park ground at 1500 GMT.
 
The club's players trained as normal on Friday ahead of Saturday's league game at Burnley.
 
"It is a time for everyone at the club to unite, get behind the club and get behind the people who are now in control. We need to move forward as a club," executive director Marc Jacob, told Sky Sports News.
 
Earlier on Friday, another south-coast club, League Two (fourth division) promotion candidates Bournemouth, were issued with a High Court winding-up order after they too failed to pay a Customs and Revenue debt.

 

Date created : 26/02/2010 
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