Could this be the end of Pompy? (merged)

[CITY FOR LIFE]

Sky Sports News understands that Portsmouth have asked the Premier League if they can sell players outside the transfer window.

Pompey's crippling financial problems have been well documented this season and they handed over a statement of their affairs to the High Court on Wednesday.

Having survived a winding-up order last week, the South Coast club will return to court on 1st March to learn their fate.

At the original hearing the court heard that Portsmouth owed more than £11.5million in unpaid taxes with representatives from HMRC informing the court that Pompey are insolvent.

Cash in
As well as looking for a new owner, it is understood that Portsmouth have now contacted the Premier League about the possibility of selling players outside the transfer window, which closed on February 1st.

They would like to cash in on some of their stars immediately and not wait until the summer in an effort to pay their bills.

Reports suggest Portsmouth would try to sell Algerian international Nadir Belhadj, midfielder Kevin-Prince Boateng and defender Marc Wilson.

Such an unprecedented idea would have to be approved by both the Premier League and Fifa.

 

[Deleted member 14625]

Re: Could this be the end of Pompy?

If so we'll be docked 6 points! Liverpool will lose none!

 

[monaug5]

Re: Could this be the end of Pompy?

I think Manchester City could bail them out LOL.

 

[BooksReject]

Re: Could this be the end of Pompy?

Don't think they will be wound up, more like an administrator appointed, docked points so relegation a cert, they can then, with administrator, plan for life outside Prem by selling assets (players) to pay off urgent debts, and factoring in parachute payment for next season, and surviving until end of this season. We hope.

 

[MCFC BOB]

Re: Could this be the end of Pompy?

We might lose 6 points, and maybe miss out on Champions League football. But you have to put things in perspective. If they dont pull together £15m at least, they will miss out on every sort of football. It's awful to watch.

 

[bluetonium]

Re: Could this be the end of Pompy?

tbh, for 6pts it might be worth us just buying one of their players if allowed. Only trouble is, who? Finnan for full back cover? Utaka or Kanu up front? Hardly going to improve the squad. Just create a new company, loan them x amount until June.

 

[grunge]

Re: Could this be the end of Pompy?

If so we'll be docked 6 points! Liverpool will lose none!

Only if they go under entirely, odds are they would opt to go for administration before that.

 

[bluenova]

Re: Could this be the end of Pompy?

Am sure I've read that they are going to give it two games more before accepting administration.

Two wins against teams around them and they will try and tough it out in the hope of staying up. If they don't get the results they'll take administration straight away to save the club, get the 10 point penalty and accept relegation.

 

[blue banks]

Re: Could this be the end of Pompy?

interesting view from the BBC, claiming that even administration may be bypassed:

<a class="postlink" href="http://news.bbc.co.uk/sport2/hi/football/teams/p/portsmouth/8522283.stm" onclick="window.open(this.href);return false;">http://news.bbc.co.uk/sport2/hi/footbal ... 522283.stm</a>

Meanwhile, a financial expert says Portsmouth face a very real threat of extinction because of their financial problems and he believes administration is an unlikely option.

"Arguably, the level of debt associated with this case will mean that it is unlikely that a suitable or willing benefactor will be found," said Simon Wilson, a partner with restructuring experts Zolfo Cooper.

"Portsmouth therefore face the very real threat of liquidation because it is increasingly unlikely that an administration order will be sought or granted.

"In this eventuality, the players contracts are no longer assets of the club and it would lose its membership of the Premier League.

"The role of the liquidator would be to realise whatever free and available assets still remain.

"The value of these assets would be nominal. While the unsecured creditors, including HMRC, would likely see no return from such a process, it is not in their interests to continue to support a business that is simply not viable and has no financial substance.

"To continue to underwrite the club would most likely result in greater losses at a later date. This would be an unprecedented case in the realms of the Premier League and would throw light on the fact that clubs can no longer rely on 'white knights' to rescue them from financial ruin.

"Many football clubs have allowed their levels of debt to grow to immense proportions. These debts cannot be serviced and investors simply don't have the appetite or ability to take on such poor business propositions."

 

[Prestwich_Blue]

Re: Could this be the end of Pompy?

To go into administration, the court would have to be convinced that there was a viable business in there somewhere. On that basis they might well grant an administration order regardless of the level of debt.