Financially-stricken Portsmouth could drop out of the Championship if they are unable to find funds to bankroll the remainder of the season, officials said Thursday.
Portsmouth administrator Trevor Birch said the club, which entered administration last month, may not able to complete the current campaign if parachute payments due to the club from the Premier League go to creditors.
Birch said in a statement that the payments due to the club were now likely to go directly to former owner Sacha Gaydamak, meaning the club would be left struggling to cover its costs.
"Following our discussions with the Premier League and Football League over the past few days, it has emerged that Portsmouth Football Club is unlikely to receive any further parachute payments or other league funding," Birch said in a statement on Portsmouth's website.
"We had previously stated that there was a real danger of the club running out of cash before the end of the season.
"The risk of this happening increases substantially without the money from the football authorities. Unless something significant happens, there is a real possibility that we may not be able to fulfil the season's fixtures.
"One potential issue appears to come from the assignment of £2.2million (2.6 million euros/3.5 million dollars) of parachute payments that was made by the old company to a previous owner. We have instructed lawyers to challenge this, but the process may take time."
Birch said the "clock was ticking" to find Porstmouth new owners before funding ran out.
"Any potential bidders will need to be prepared to make a major investment in the club because the outlook for next season looks challenging unless we can sell some players in the summer," he said.
Portsmouth, who were deducted 10 points after going into administration, are currently second from bottom in the Championship, five points adrift of safety.
Source: AFP
