Portsmouth's problems set to get worse
Portsmouth has seen many highs and lows in the span of just one year, in 2009 Pompey won the FA cup for the first time and made history under Harry Redknapp. But ever since Harry left the team’s fortunes changed dramatically as Portsmouth took a nose dive towards relegation. And to make matters worse the club’s debts just skyrocketed. The financial scenario became so bad that they had to be sent under administration and also got relegated in the past season.
There are more problems heading their way. The Queen’s Revenue and Customs department has filed papers that would hamper their attempt to come out of Administration.
In June, Portsmouth signed a contract that was called Company Voluntary Agreement, that entitled them to repay creditors that were unsecured 20p in the pound. Things were starting to look better to some degree for the club, but now the HMRC has said that the amount Portsmouth owe means that HMRC can block the Company Voluntary Agreement.
All of this simply means that Portsmouth will stay under administration till their appeal is heard. Andrew Andronikou, the club’s administrator, said that he had been expecting HMRC’s appeal and said that he does not expect the case to be hearing for at least 3 to 4 more months.
All of these permutations and limitations would have a negative effect on the new manager, Steve Cotterill, who is to lead the club in the upcoming season. Portsmouth Administrator Androninkou said that the club is free to sign players till the total number of players reaches 20, currently Pompey have 18 players in their first team squad.
The CVA that Portsmouth attained last month only comes into effect if 75 % of parties that owe the club agree during the Voting. There was an agreement of 81.3 % during the vote that was taken on 17th on June.
HMRC though, said that there was a sum of 13 million pounds that was left out of the final debt amount, the department said that if the 13 million pound amount is included the total amount would have been more than 25 percent of the total. And that is why HMRC needs to block the CVA.
HMRC in a statement said that they are acting only in the interest of the creditors who are not part of the football business. The bureau said that it is simply not justified that they should be paid 20p in the pound, while other creditors will be paid in full.
It is believed that Portsmouth will not be deducting any more points once they start the championship season, they were docked 9 points in the premier league when they got relegated.
The transfer season for Portsmouth may not be very fruitful, as they were relegated from the premier league in the last season that was full of turmoil.
The Club administrator said that the situation is irritant. He said that it would take a lot of hard work for Portsmouth to come out of this turmoil. The Embargo is set to last for a while and things may get even worse before they start to get any better.
Portsmouth, after being relegated, also lost a number of big names. The first blow was when Harry Redknapp left and took Defoe and Keane back with him. Later on when the club came under the cloud of relegation, a few others left as well. So Pompey really do have their work cut out for them and considering the situation of the club they may be threatened to go further down.
Pompey are still hopeful that the club will be able to overcome its problems and will at least be able to survive in the championship this season.
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