Portsmouth FC go into administration

Kiith

Portsmouth become the 1st Premier League team to go into administration tomorrow, according to Sky News. The 4 potential buyers failed to prove they had the fund available to buy the club.

http://news.sky.com/skynews/Home/Business/Portsmouth-FC-Buyers-Fail-To-Show-Cash-Club-Set-To-Go-Into-Administration/Article/201002415559607?lpos=Business_Carousel_Region_0&lid=ARTICLE_15559607_Portsmouth_FC_Buyers_Fail_To_Show_Cash%3A_Club_Set_To_Go_Into_Administration

redout

Not tomorrow yet

JPA

At least it's better than being closed down.

MementoMori

Lucky to get administration approved imo.

I was nearly 99% sure they were going to go straight into liquidation.

Glad to be wrong in this case.

jaykay74

Just as long as they hang onto their results and fulfill their fixtures I'II be happy.

keane2097

FFS, after the cowboys that were let buy them over the last year they start the thorough investigations into whether people have enough money now.

I'd lol but it's not that kind of joke.

That_Guy

As horrible as it must be for Pompey fans at least there's still a football club to cheer for week in and week out.

Helix

MementoMori wrote: »

I was nearly 99% sure they were going to go straight into liquidation.

they will as soon as the season is over

JPA

Helix wrote: »

they will as soon as the season is over

They have a few months to get a buyer in at least.

Helix

JPA wrote: »

They have a few months to get a buyer in at least.

whos gonna buy them? for the debt alone youd buy a championship club with actual saleable assets

theyre a dead duck being kept afloat purely because itd be more hassle to have them go to the wall before may

mike65

As a Wolves fan I'm happy they will survive and get docked points cos they are now one of the certainties to go down.

JPA

Helix wrote: »

whos gonna buy them? for the debt alone youd buy a championship club with actual saleable assets

theyre a dead duck being kept afloat purely because itd be more hassle to have them go to the wall before may

Well there was apparently 4 buyers interested but they couldn't get funds together in time.

Jordonvito

mike65 wrote: »

As a Wolves fan I'm happy they will survive and get docked points cos they are now one of the certainties to go down.

as if they werent already:)

Helix

JPA wrote: »

Well there was apparently 4 buyers interested but they couldn't get funds together in time.

youd have to be mental to buy them, tbh

they look like they could hit freefall

mike65

Jordonvito wrote: »

as if they werent already:)

Probably were but there was always the chance they'd pick up some points as they have been playing better than the results would suggest. Now its a certainty.

joe123

mike65 wrote: »

As a Wolves fan I'm happy they will survive and get docked points cos they are now one of the certainties to go down.

I thought you were a liverpool fan?

mike65

Both for family reasons, they are usually in different divisions so its rarely been a problem in my adult lifetime.

MementoMori

Be interesting to see how the team perform now that they are pretty much guaranteed to go down with 3 months of the league left to play.

Can see morale being an issue.

Helix

MementoMori wrote: »

Be interesting to see how the team perform now that they are pretty much guaranteed to go down with 3 months of the league left to play.

Can see morale being an issue.

especially since 5 of their starting xi are loans who dont actually care about the club

and the rest are foreigners for the most part, who dont actually care about the club

mike65

True, will Grant bother to stick around?

Jordonvito

mike65 wrote: »

Probably were but there was always the chance they'd pick up some points as they have been playing better than the results would suggest. Now its a certainty.

yeah they really have, i think that defeat to stoke summed up their season.

Jordonvito

MementoMori wrote: »

Be interesting to see how the team perform now that they are pretty much guaranteed to go down with 3 months of the league left to play.

Can see morale being an issue.

some crack if they play unreal and stay up! if thats even mathamatically possible

greendom

Helix wrote: »

especially since 5 of their starting xi are loans who dont actually care about the club

and the rest are foreigners for the most part, who dont actually care about the club

That's a bit unfair - so you have to be British to care for the club do you?

JPA

Jordonvito wrote: »

some crack if they play unreal and stay up! if thats even mathamatically possible

They can get 43 points for the season mathematically.

Jax Teller

Does all there debt not go when they go into administration?

greendom

Jordonvito wrote: »

some crack if they play unreal and stay up! if thats even mathamatically possible

Is that Unreal Madrid ?;)

Jordonvito

greendom wrote: »

Is that Unreal Madrid ?;)

nah urcinezi

greendom

keysersoze_88 wrote: »

Does all there debt not go when they go into administration?

I thought it was a bit of a stay of execution where creditors are held off for a period of time while they try to find a buyer.

Le King

greendom wrote: »

I thought it was a bit of a stay of execution where creditors are held off for a period of time while they try to find a buyer.

It's just a bit of time to decide ways to restructure the debt of the club and present them to the creditors. Petty much what you said.


It's basically an alternative to liquidation.

djpbarry

Helix wrote: »

especially since 5 of their starting xi are loans who dont actually care about the club

and the rest are foreigners for the most part, who dont actually care about the club

So all the (Irish) fans of British clubs on this forum don't actually care about their clubs?

Helix

greendom wrote: »

That's a bit unfair - so you have to be British to care for the club do you?

nope, you can be british and not care about the club too

just looking at pompeys lineup, i cant really see all that many whod care if the club went under or not

recylingbin

How much do they owe?

I can think of two very good reasons why someone will eventually buy them (having negotiated the debt down):

1) Parachute
2) Payments.

This buyer will then trouser the cash and f. off. Leaving Portsmouth in an even worse position. It is the end for Portsmouth as we know them, just not for a couple of seasons yet.

JPA

recylingbin wrote: »

How much do they owe?

I can think of two very good reasons why someone will eventually buy them (having negotiated the debt down):

1) Parachute
2) Payments.

This buyer will then trouser the cash and f. off. Leaving Portsmouth in an even worse position. It is the end for Portsmouth as we know them, just not for a couple of seasons yet.

It's not the end for them. Administration will save them. Leeds were in just as bad a state.

MementoMori

recylingbin wrote: »

How much do they owe?

I can think of two very good reasons why someone will eventually buy them (having negotiated the debt down):

1) Parachute
2) Payments.

This buyer will then trouser the cash and f. off. Leaving Portsmouth in an even worse position. It is the end for Portsmouth as we know them, just not for a couple of seasons yet.

They owe somewhere in the region of £60m apparently.

Not a chance a new owner would be able to pocket the parachute payments and simply bugger off, especially with the club being in administration.

It could still go into liquidation before the end of the season if the administrators decide that this is the best option. Even with administration the club will apparently need £26m before the end of the season accounting to a Guardian report earlier in the week.

MementoMori

JPA wrote: »

It's not the end for them. Administration will save them. Leeds were in just as bad a state.

I think Leeds were in a better position - Leeds owned Elland Road and they had players they could sell for cash when they went into administration.

Portsmouth's situation is a lot more bleak than Leeds.

greendom

Helix wrote: »

nope, you can be british and not care about the club too

just looking at pompeys lineup, i cant really see all that many whod care if the club went under or not

And what gives you that impression? They've gone for weeks now without being paid but they still give 100% week in week out; they've been pretty unlucky with results in the league and there in the FA quarters. I really don't see how you can say they don't care

dreamers75

mike65 wrote: »

As a Wolves fan I'm happy they will survive and get docked points cos they are now one of the certainties to go down.

thats why i love football


No matter what happens one team another team always benefits and their fans go into smug mode

astrofool

If they liquidate, then only two get relegated, so it would depend if wolves had better results against them than the other relegation threatened teams were the results to be voided.

recylingbin

JPA wrote: »

It's not the end for them. Administration will save them. Leeds were in just as bad a state.

No, they weren't.
Leeds had saleable assets which were worth a good deal, even in a fire sale.
Portsmouth have nothing. The only things that can save them is their creditors holding out for the parachute payments or a new owner renegotiating the debt down so that he can siphon off the parachute payments and then the club go bust.

Either way, Pompey go bust eventually.

Fratton Fred

Chanrai and his business partner, Levi Kushnir who now own Pompey are owed £17m by Pompey. the former owner, sasha Gaydamak is owed £28m but has no chance of getting his money, he is owed it by Falcondrone, who defaulted on the loan to Chanrai. Gaydamak's best hope is to get a few million in scraps.

now, take a look at these articles and tell me this is all a coincidence (Seeing as Sasha has no form of income of his own, it is believed all his money is his dad's, a guy called Arcadi.)

http://archive.globes.co.il/searchgl/Gaydamak%20ordered%20to%20attend%20February%20court%20hearing_h_hd_2L34nE3WqDrmnC30mDJ8tE3WpBcXqRMm0.html

http://www.complinet.com/global/news/news/article.html?ref=127834

this one I think sheds some light on where I am going with this.

http://archive.globes.co.il/searchgl/Court orders Gaydamak to pay Kushnir, Chainrai $23m_h_hd_2L34nDZaqDbmnC30mDJ0mC34sBcXqRMm0.html

now read this article, which sheds a bit of light on how good agents are at moving money around so it disappears, just what a money launderer with frozen bank accounts needs.

http://www.guardian.co.uk/football/2006/jan/22/newsstory.sport1

mike65

The deed is done, details to follow

Bournmouth AFC will be wound up as well. Could be 4/5 clubs out of business by the summer.

NinjaTruncs

I would guess the EPL helped in getting Administration rather than liquidation, as it would be a disaster is the club folded during a season. I wouldn't be surprised if they go into liquidation at the end of the season and the club folds.

Fratton Fred

To come out of Administration they need 75% of the creditors to agree to a CVA. If they can pay off the HMRC then 45m of the outstanding debt is to Chainrai and Gaydamak, neither of which will get anything like what they are "Owed" back.

I don't think that we will now go into liquidation, but it is very bleak.

Fratton Fred

Another thing.

I would absolutely laugh my ****ing arse off if we won the FA Cup!!

Hagar

Best of luck with that Fred. Sorry to see the club go down like that. Very sad for the true supporters.

Fratton Fred

Hagar wrote: »

Best of luck with that Fred. Sorry to see the club go down like that. Very sad for the true supporters.

Cheers Hagar.

Most Pompey fans have been through thick and thin with Pompey, so relegation does not worry us too much, in fact it gives us the chance of having something to play for, rather than mid table mediocrity.

The fact that rich businessmen, including some who have been charged with money laundering, have decided to kick our club around is more than a little annoying. There are a lot of people who would be best advised to stay out of Portsmouth for a while.

flahavaj

I feel bad for you Fred, really do, one of the better posters on this forum. Whats happened to your club is just another of the financial mismanagement that could potentially kill the premier League. English soccer badly badly needs to get its act together and come up with some stricter guidelines as to how clubs are run, whos allowed do it and just how they get the funds to do so. Several other clubs will follow suit in the next few years mark my words, but as usual people don't care about the Portsmouths and Bournemouths of this world. The only way people will really sit up and take notice is if one of the big boys falls down a few divsions.

And you know what, it would be absolutely delicious if ye won the cup. I actually want this to happen now just as much as I want to see my own club succeed.

Fratton Fred

There is definately a feeling that the Premierleague would like us to quietly fucx off and die, like an embarrassing sibling. If Gaydamak hadn't run out of money, or had his Dad's bank accounts frozen, we would still be throwing money around, millions in debt, but no one would care.

The only difference between us and a lot of premiership clubs is that we don't have a sugar daddy.

The pressure is off as far as the league goes, so who knows, we might actually start winning a few games which would be nice.

To go down and not have the lowest ever points tally would be nice, as would an FA Cup semi final.

leninbenjamin

Fratton Fred wrote: »

To come out of Administration they need 75% of the creditors to agree to a CVA. If they can pay off the HMRC then 45m of the outstanding debt is to Chainrai and Gaydamak, neither of which will get anything like what they are "Owed" back.

I don't think that we will now go into liquidation, but it is very bleak.

I read elsewhere that they will be unable to agree to a CVA. Something to do with Football league rules state footballing creditors must be paid back in full?

Fratton Fred

leninbenjamin wrote: »

I read elsewhere that they will be unable to agree to a CVA. Something to do with Football league rules state footballing creditors must be paid back in full?

Footballing creditors aren't that much compared to the rest. I think it is around £9m, none of which is currently overdue. I would expect all of that to be cleared if/when the TV and parachute money is advanced.

Dozen Wicked Words

Firstly I don't think Mandaric is completely blameless, I think the wage bill was excessive when he was there, not sure it was the 50 odd million a year it got to but was on the way up.

I also think Harry Redknapp has an uncanny knack of financially destroying a club. Possibly due to insane wages he pays or maybe just bad luck.

Bournmouth - Facing a winding up order.
Portsmouth - In administration.
Southampton - Went into administration and were in financial strife.
West Ham - Supposedly 100 million in debt.