Source: Telegraph
Portsmouth administrator vows to bring in police if financial irregularities are found
Andrew Andronikou formally took control of Portsmouth on Friday, promising to cut costs "to the bone" and to challenge the nine-point deduction, due to be ratified by the Premier League on Tuesday, that will condemn Fratton Park to Championship football next season. [LNB]Andronikou said his priority was to ensure that the club, who face Burnley on Saturday, fulfil their fixtures this season, but he promised to investigate the dealings of the four owners whose conduct has caused significant concern to the Premier League. [LNB] Related ArticlesAdministrator vows to save PortsmouthStorrie to resign as Portsmouth chief executiveHarry Redknapp: Portsmouth will bounce backHart: Portsmouth 'can be strong again'Football clubs in administrationPortsmouth fans demand the truth"We are all governed by money laundering provisions today and if I find something untoward I have to report it," Andronikou said. "Unfortunately money laundering is a description attached wherever there is money and irregularities." [LNB]Asked if he had identified evidence of wrongdoing yet, he said: "I will not be drawn on that."[LNB]Estimating the club's total debts at £82-86million, Andronikou said he believed Portsmouth's descent into administration was inevitable because of overspending on wages, and he predicted that they would not be the last Premier League club to suffer that fate. [LNB]He said he would seek a concession from the Premier League to allow him to sell players immediately, though that is unlikely to be granted. Portsmouth's monthly player wage bill is around £3 million this month's was covered by owner Balram Chainrai on Wednesday and Andronikou said he needed to sell two players to raise the £7 million required to cover overheads for the rest of the season. [LNB]He said: "There will not be a fire-sale but we do need to generate working capital as part of this and we will have to sell one or two players."[LNB]Andronikou hoped to secure concessions from the Premier League at a shareholders meeting on Thursday. [LNB]"It has been clearly stated to me that there will be a concession [to sell players] but it will be on a sale and loan-back basis. Clearly hoping to get it to a position where I can sell them outright. I will meet with the clubs and try and make them see sense. We are looking to raise £3-7 million."[LNB]Andronikou's request looks unlikely to succeed as the League has already declined a request to sell players outside the transfer window. Sources indicated on Friday night that there was no chance of an appeal against the nine-point penalty, which is based on the grounds that the financial problems occurred despite "all due dilligence."[LNB]Andronikou said he would hope to deal with creditors in eight weeks' time having found a new owner. [LNB]He is already aware of four prospective buyers but said he would only talk to credible parties. "I will not waste a cup of coffee on anyone who does not have proof of funds from a triple-A-star rated bank or financial institution."[LNB]If the creditors accept a Creditors Voluntary Agreement to exit administration, Portsmouth would avoid facing a points deduction at the start of the Championship season. [LNB]The key to the CVA will be the attitude of former owner Sacha Gaydamak, who is owed £32 million, and Her Majesty's Revenue and Customs, which Andronikou said was due £15 million. [LNB]As a secured creditor Chainrai, who is due £13-£15 million, is likely to emerge with most of his money repaid. Andronikou said he was confident he could secure agreement. [LNB]Other creditors include former owner Ali Al Faraj, who could be owed £3 million-£4 million, general creditors owed £6 million-£7 million. Football creditors debts of £6million this season and £7 million next year will be covered by the £5 million the club are due from the Premier League before the end of the season, and a parachute payment of £16 million in May. [LNB]Andronikou's appointment means the end of chief executive Peter Storrie's seven-year tenure at the club. He announced he would depart after administration was completed. [LNB]"Clearly Peter Storrie's position is untenable," Andronikou said. [LNB]Staff at the club were told on Friday that redundancies were inevitable and cuts would begin next week. [LNB]Sports minister Gerry Sutcliffe said Portsmouth's plight demonstrated that football faces "tough challenges" and called for greater scrutiny of club takeovers. [LNB] "We want to see much greater scrutiny of takeovers so that new owners show proof of funds and a clear business plan going forward. Owners come and go but our clubs were built on the fierce loyalty of fans." [LNB]
