Source: Telegraph
Portsmouth's debts are even worse than previously feared
It is understood that the total tax arrears are £18 million, 50 per cent higher than had been believed. The figures are included in the 'statement of affairs' delivered to the High Court this week as part of the club's defence against a winding-up order from Her Majesty's Revenue and Customs. [LNB]The document sets out the full scale of Portsmouth's plight. HMRC's petition only refers to £12 million of unpaid VAT and PAYE, but there are further arrears referred to in the statement. [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 televisionThe Premier League, meanwhile, has refused Portsmouth's request to sell players for the rest of the season, despite Fifa unusually granting an exception to the transfer-window system. [LNB]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 betrays their desperation. [LNB]The club argued that they should be granted dispensation to sell players to prevent them being wound up. While Fifa was apparently persuaded, the Premier League board was not, arguing that Portsmouth's financial position was yet to fully unwind and that administration was a viable alternative to liquidation. [LNB]Had Portsmouth's request been granted it would have fatally undermined the intellectual and philosophical basis of the League, as well as the rule-book. The Premier League imposes no limits on club spending, but the flip side is that clubs cannot be bailed out if they get into trouble. Making a special case of Portsmouth would have far-reaching consequences. [LNB]The club's best chance of avoiding administration is finding another new owner. [LNB]Endeavour Plan, an investment fund run by New Zealand businessman Victor Cattermole linked with a takeover, has been investigated by financial regulators. [LNB]
