Source: Daily_Mail
Fratton Park to let: Portsmouth set to sell stadium to owner Balram Chanrai, reveals taxman
Portsmouth intend to sell Fratton Park to owner Balram Chainrai for £10million and rent it back for £1.2m a year, the High Court has been told.[LNB]Further details of the club's plight were laid bare after HM Revenue and Customs raised questions over Pompey's decision to go into voluntary administration last week.[LNB]HMRC want an investigation into the financial dealings between the several owners who have been in charge of Portsmouth since Alexandre Gaydamak first sold to Sulaiman Al Fahim last summer.[LNB] Endless woe: Portsmouth players (from left) Jamie O'Hara, Ricardo Rocha, Hermann Hreidarsson and David James [LNB]Portsmouth's outstanding tax bill stands at £12.1m and Gregory Mitchell, representing the taxman, told High Court judge Mr Justice Norris: 'The question we ask, and supporters and members of the public ask, is how is it possible that this once-great club has become insolvent with liabilities exceeding assets by a figure of £65 million?'[LNB]He said HMRC wanted to know how a 'succession of owners of the club have allowed such enormous debts to accrue'.[LNB]'We say that there are serious questions which arise and require a full investigation into the financial dealings between the various owners of the club, which at the moment are shrouded in mystery.[LNB]'If this club can be rescued by a process of administration, then that is to be welcomed by all, including HMRC.'[LNB]He said HMRC supported the administration but also wanted the questions answered and to be satisfied about 'areas of concern'.[LNB]Mr Mitchell said HMRC's support for the plans to rescue the club were qualified by concerns.[LNB] Sold? Fratton Park could be transferred to Balram Chanrai[LNB]'Have these administrators been validly appointed?' he asked the court. 'The question of validity is a fundamental issue and that has to be determined one way or the other as quickly as possible.'[LNB]He said if the administration was invalid, then the administrators could not act for the club.[LNB]Mr Mitchell said HMRC also wanted to know if the administrators were 'completely independent'.[LNB]They had been appointed a day before HMRC's petition to wind up Portsmouth was due to be heard in the High Court, he said.[LNB]They had been appointed by a company registered in the British Virgin Islands and HMRC 'knew very little about them'.[LNB]There appeared to be close connections between the company and Hong Kong businessman Balram Chainrai who has a controlling interest in the club, he said.[LNB]'We understand that any funds will come from Mr Chainrai and our concern is that there should be a full and independent investigation of the position and the transactions between the club and Mr Chainrai.'[LNB] Unrest: Portsmouth supporters protest about the malaise surrounding their club[LNB]Mr Mitchell said although HMRC welcomed the administration if properly funded, there were concerns about where funds to meet the debts will come from.[LNB]'We say that if there is no proper evidence of funds having been provided to the administrators to meet the club's financial needs, then there is a real danger the administration will fail to achieve the proper purpose.'[LNB]Simon Barker QC, representing Portsmouth, said Portpin, Mr Chainrai's company, was providing £15million which was more than enough to keep Portsmouth afloat until the end of the season.[LNB]He said if the appointment of administrators was found to be invalid, then Portsmouth directors would return to court to appoint new ones.[LNB]The administration must continue, he said, to allow a purchaser to refund the club.[LNB]Mr Barker said: 'There is no reason to impugn the conduct of these administrators at all. There is no reason the court should have any doubts about their appointment and independence.[LNB]'The administrators want the air cleared in a way which allows them to get on with their task.'[LNB]Mr Justice Norris, in a ruling, said: 'A shadow has been cast over the existing appointment of the administrators and it is clear that shadow should be removed as quickly and cheaply as possible.[LNB] Confident: Portsmouth administrator Andrew Andronikou [LNB]'It is common ground before me that immediate liquidation of the company is a course to be avoided if possible. But it is only possible if properly funded administrators can be put in place.'[LNB]The judge ordered a hearing over the validity of the administration appointment in two weeks' time.[LNB]He also directed that Portsmouth should provide evidence of 'each and every sum' which Portpin lent to the club and also 'full particulars' of any money paid to Portpin and Chainrai by the club.[LNB]Administrator Andrew Andronikou will have to wait to meet Premier League officials to discuss a number of issues, including the possibility of waiving the nine-point deduction imposed on sides going into administration.[LNB]Andronikou does not expect this latest development to threaten the administration process at this stage.[LNB]'We're not unduly worried,' he said. 'It's not standard procedure but I'd imagine that HMRC are basically crossing their Ts and dotting their Is. We're expecting the administration to proceed as it was.'[LNB] Portsmouth told they must pay £7m by the end of the month in High Court showdownPompey buy-out boost as New Zealand businessman says: I'm still interestedPortsmouth administrator insists he can challenge nine-point deductionPORTSMOUTH FC
