Source: Telegraph
Portsmouth denied lifeline after Premier League turn down request to sell players
The decision denies the club a potential lifeline and increases their chances of going into administration, which would attract a nine-point penalty. [LNB]Portsmouth's request to offload players to reduce their wage bill outside the traditional transfer windows (June 1 to Aug 31, and Jan 1 to Feb 2) betrays the desperation at Fratton Park. The club are attempting to fight a winding-up order brought by Her Majesty's Revenue and Customs and due to be heard at the High Court on March 1. [LNB] Related ArticlesWenger: Pompey's plight a threat to league's integrityPortsmouth v Stoke City: previewPortsmouth ask to sell players outside windowPortsmouth's finances scrutinised by HMRCWhelan tells Premier League to address debt crisisSport on televisionHMRC is claiming unpaid VAT, PAYE and National Insurance of £12 million, and the club's debts stand at £60 million. [LNB]The club argued that they should be granted dispensation to sell players to prevent them being wound up, an outcome that would see their results for the season nullified, impacting on the integrity of the Premier League. [LNB]While Fifa was apparently persuaded, the Premier League board was not, arguing that Portsmouth's financial position is yet to fully unwind and that administration is a viable alternative to liquidation. [LNB]If Portsmouth had been granted their request it would have fatally undermined the intellectual and philosophical basis of the League, as well as the rule-book. [LNB]The Premier League imposes no limits on club spending, but the flip side is that clubs cannot be bailed out if they overreach. Making a special case of Portsmouth would have far-reaching consequences. [LNB]With owner Balram Chainrai apparently unwilling or unable to bail out the club's debts their best chance of avoiding administration is finding a new owner, the fifth of the season. [LNB]As the search goes on it has emerged that Endeavour Plan, an investment fund run by New Zealand businessman Victor Cattermole linked with a takeover, has been investigated by financial regulators. [LNB]New Zealand's Securities Commission is investigating the online scheme, which drip-feeds investor cash into a Hong Kong fund, pays commission if investors refer friends, and has claimed returns of up to 12 per cent. [LNB]
