Portsmouth's administrators confirm extraordinary level of debts suffered by troubled club

21 April 2010 17:56
Portsmouth's administrators have revealed the extraordinary level of the club's debts.[LNB]A 70-page document sent to the club's known creditors details how Portsmouth owe £38.2million in unsecured loans to former owners and have a tax bill of £17.1m.[LNB]Portsmouth owe £17.3m in outstanding transfer fees. Rennes were receiving over £630,000 a month for John Utaka, while Glenn Johnson's transfer fee from Chelsea was still being paid.[LNB]Revealed: The full 70-page document on Pompey's extraordinary debts Portsmouth woes: The size of the club's debts have been staggering[LNB]The club owe £10.35million to finance companies, who assisted with the signings of Johnson, Jermain Defoe and Sulley Muntari.[LNB]Portsmouth owe £9.76m to 26 agents, including just over £2m to the so-called super-agent Pini Zahavi. Nine players, including Sol Campbell, Sulley Muntari and Niko Kranjcar who are no longer at the club, are owed a combined total of £3.04million in image rights.[LNB]Portsmouth also owe bonus payments to 28 players, including Peter Crouch and David James, totalling £1.86m. The club are still owed money from the sale of Johnson to Liverpool, Defoe to Tottenham and Muntari to Inter Milan.[LNB]Portsmouth became the first Premier League club to be placed in administration earlier this year.[LNB]Cuts: Administrator Andrew Andronikou[LNB]Extraordinarily, Portsmouth owe Tottenham £1million over Asmir Begovic despite the Bosnian goalkeeper having no connection with the London club.   [LNB]Begovic was linked with Spurs in January but opted against a move to White Hart Lane and signed for Stoke instead. But Portsmouth have been left owing Spurs a £1million sell-on fee, on top of £500,000 for the loan signing of Jamie O'Hara and £3million from the signing of Kevin Prince Boateng.  [LNB] It is a situation which encapsulates the financial mess Portsmouth got themselves into, a mess which has not only led to the club's relegation but has had a wider effect on the local community.   [LNB]The dossier includes a remarkable 15 pages of local business creditors which range from an outstanding bill of £87.50 with the Co-operative florists to a far more significant debt of £54,777.93 with TWC Joinery and Shopfitting Ltd.  [LNB] The administrator Andrew Andronikou, of Hacker Young, needs at least 75% of the unsecured creditor base to accept reduced repayment terms and agree to Company Voluntary Arrangement. Andronikou has invited all creditors to a meeting at Fratton Park on May 6 where he will inform them of his offer, with reports placing it at around 20-25p in the pound.   [LNB]An agreement from Gaydamak, al-Fahim and HM Revenue and Customs would be enough for Andronikou to move the club out of administration. Portsmouth's plunge into the deep red began in 2006 when, under Gaydamak's control, the club went from a pre-tax loss of £912,397 to a staggering £23.4million in 2007.   [LNB]Gaydamak had plans for a new stadium and wanted to develop revenue streams away from football while establishing the club in the top 10 of the Premier League.   The wage bill rocketed and by 2009 Portsmouth's overall staff costs - made up mainly of player wages - were an astonishing 109% of revenues. [LNB] Portsmouth must take the blame for financial woes, blast Premier LeagueWhopping £119m Pompey debt won't put off bidders, insists administratorPORTSMOUTH FC

Source: Daily_Mail