Portsmouth go into administration
Portsmouth have become the first Premier League side in history to go into administration.
The news broke this morning that the current owner, Balram Chainrai, had been unable to find another investor for the club and Pompey now face the certainty of relegation.
Portsmouth have been a club in financial trouble for a long time and the hard work of many people trying to keep the club above water has proved fruitless. This news will no doubt dent the immediate future of the club greatly and they could well face successive relegations into the lower leagues.
Chainrai’s spokesperson said: “He hasn’t made a penny out of the club. He was asked in October to put in £17million 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.”
“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.”
It is difficult to see what the next move for Portsmouth is. They will no doubt be stripped of all valuable assets, which will leave the club with a first team that would struggle to compete in a league like the Championship.
The other factor to consider is whether the club can still be run as a business. If it is decided that they cannot then the club could end up being dissolved, which would cause the Premier League a huge headache in deciding the best way to share out valuable points.
Portsmouth fans deserve some credit for sticking with their side through thick and thin. No doubt this news will have eradicated the recent memory of an FA Cup win over local rivals, Southampton.
All the fans ever asked for was transparency and they have finally got it in the worst possible form. The next move is vital and the fans will have to stay strong, even though they may feel like throwing in the towel.
The spokesman 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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