Guest totemowl Posted February 25, 2010 Share Posted February 25, 2010 Tomorrow, it will most likely be confirmed that Portsmouth, owing £70M, will go into admin with a subsequent relegation into the Championship. It's widely accepted that this is as a result of mismanagement, spending more than they had and trying to get an unfair advantage over their peers. This mismanagement is not unusual, but many clubs have battled on, without going into admin. Of course, mismanagement to the scale of £70m is unusual and in that sense Portsmouth deserve relegation. They should also expect to do a Leeds, Wednesday, Charlton or Southampton, but this is unlikely. Admin will mean that creditors get as much as 6p or 7p in the £, whereas Portsmouth will be able to write their debts off. That's somewhat unfair on those many creditors but that is not unusual in such circumstances. As a result, some of those creditors might become bankrupt. But what I find to be entirely unjust is that, because Portsmouth are going into admin and are in the Premiership, they will - in the Championship and free of any current debts or obligations - be due parachute payments of £37M over the next 2 years. This money is being put aside for the new club, rather than being made available to the creditors. So they won't be starting with £34m in debt, they won't even be starting with a clean slate, they'll be starting with a £18m per annum benefit over their Championship rivals. This is a ludicrous situation that ought to be stopped. But it might be a sign of things to come. Given that Premiership clubs are £4bn in debt, it might well become commonplace that Premiership clubs in debt and facing relegation will go into admin. So a well run Championship club, that might overspend slightly to try and get in the Premiership, is going to be at a considerable disadvantage to any Premiership club that is willing to cash in the family jewels to get success. This is another sign that the FA Premier League will look after their own rather than reward success, honesty, integrity and good business management. The sooner FIFA impose a level playing field the better. Link to comment Share on other sites More sharing options...
Guest Deleted member Posted February 25, 2010 Share Posted February 25, 2010 Is this a fact? because its disgusting if it is Link to comment Share on other sites More sharing options...
barmyowl1212 Posted February 25, 2010 Share Posted February 25, 2010 I just hope we stay up now just so i can go next season *if they still exist* Link to comment Share on other sites More sharing options...
Dark$ide Posted February 25, 2010 Share Posted February 25, 2010 Is this a fact? because its disgusting if it is Thats utterly outrageous if true. Can't see HMRC being very happy if thats what the PL are planning. Thats probably why they wan't to go for a liquidation order. Link to comment Share on other sites More sharing options...
steelowl Posted February 25, 2010 Share Posted February 25, 2010 who owns their ground? will they lose ownership? one of the points often used against our taking this route is that we would lose our ground and in effect have to rent it back Link to comment Share on other sites More sharing options...
i used to be sc_owl Posted February 25, 2010 Share Posted February 25, 2010 To be honest it's what I've come to expect from football. It makes me sick. Link to comment Share on other sites More sharing options...
happy bunny Posted February 25, 2010 Share Posted February 25, 2010 the vast majority of debt that clubs hold is money invested in transfer fees, agents fees and players wages the system is so unbalanced it's only a matter of time before the house of cards comes tumbling down Link to comment Share on other sites More sharing options...
durhamowl3 Posted February 25, 2010 Share Posted February 25, 2010 the vast majority of debt that clubs hold is money invested in transfer fees, agents fees and players wages the system is so unbalanced it's only a matter of time before the house of cards comes tumbling down The sooner it comes down the better. On this note - I would hope HMRC block the administration. Or at the minimum get some sort of agreement where the creditors get the parachute payments. Link to comment Share on other sites More sharing options...
latemodelchild Posted February 25, 2010 Share Posted February 25, 2010 Surely the parachute payments will go to creditors or not be paid at all. I thought if a club went into admin it became a new entity. Surely if its not liable for the old clubs debts it shouldnt benefit from the old clubs parachute payments. If pompey do manage to go into admin but still get payments then a league wide boycott by fans should be called for. Dont give them any more cash. This will raise awareness of how people feel and put pressure on the FA etc. Link to comment Share on other sites More sharing options...
Guest Walkley_Owl Posted February 25, 2010 Share Posted February 25, 2010 Tomorrow, it will most likely be confirmed that Portsmouth, owing £70M, will go into admin with a subsequent relegation into the Championship. It's widely accepted that this is as a result of mismanagement, spending more than they had and trying to get an unfair advantage over their peers. This mismanagement is not unusual, but many clubs have battled on, without going into admin. Of course, mismanagement to the scale of £70m is unusual and in that sense Portsmouth deserve relegation. They should also expect to do a Leeds, Wednesday, Charlton or Southampton, but this is unlikely. Admin will mean that creditors get as much as 6p or 7p in the £, whereas Portsmouth will be able to write their debts off. That's somewhat unfair on those many creditors but that is not unusual in such circumstances. As a result, some of those creditors might become bankrupt. But what I find to be entirely unjust is that, because Portsmouth are going into admin and are in the Premiership, they will - in the Championship and free of any current debts or obligations - be due parachute payments of £37M over the next 2 years. This money is being put aside for the new club, rather than being made available to the creditors. So they won't be starting with £34m in debt, they won't even be starting with a clean slate, they'll be starting with a £18m per annum benefit over their Championship rivals. This is a ludicrous situation that ought to be stopped. But it might be a sign of things to come. Given that Premiership clubs are £4bn in debt, it might well become commonplace that Premiership clubs in debt and facing relegation will go into admin. So a well run Championship club, that might overspend slightly to try and get in the Premiership, is going to be at a considerable disadvantage to any Premiership club that is willing to cash in the family jewels to get success. This is another sign that the FA Premier League will look after their own rather than reward success, honesty, integrity and good business management. The sooner FIFA impose a level playing field the better. Absolutely no chance. Link to comment Share on other sites More sharing options...
just visiting Posted February 25, 2010 Share Posted February 25, 2010 To play in next seasons Championship the new club will require the "Golden Share" from the football league. To obtain this the club must pay all outstanding football related debts in full, all non footballing debts, (HMRC included) must be agreed by way of a CVA. The HMRC will not except anything but full repayment of their debts, therefore, no CVA can be obtained. Now the only way the new Portsmouth FC can obtain the "Golden Share" is via the FL's Exceptional circamstances rule. This will without doubt result in the new club starting next season on -15 points minimum. Link to comment Share on other sites More sharing options...
Guest ArbourOwl Posted February 25, 2010 Share Posted February 25, 2010 To be honest it's what I've come to expect from football. It makes me sick. Me too, the more i hear about it the more my blood boils.... Absolutely no chance. I hope your right Walkley. i hope they get flip all once relegated Link to comment Share on other sites More sharing options...
Guest Walkley_Owl Posted February 25, 2010 Share Posted February 25, 2010 Just visiting sums it up Link to comment Share on other sites More sharing options...
DJMortimer Posted February 25, 2010 Share Posted February 25, 2010 To be honest it's what I've come to expect from football. It makes me sick. Concise and to the point. How anyone can see football's dark underbelly and not be thoroughly disgusted is beyond me. Link to comment Share on other sites More sharing options...
RichSheffWeds Posted February 25, 2010 Share Posted February 25, 2010 No disrespect to Portsmouth fans, infact you have to feel sorry for them, but for the long term good of football in this country I hope they get wound up and go out of business. Like others on here, I'm sick of seeing clubs spending money they haven't got and walking away from their liabilities. (If Wednesday got into that situation we would deserve to get wound up too). The reality is ofcourse that they will be in the CCC and be able to compete. Makes me sick. Link to comment Share on other sites More sharing options...
shabbyhouse Posted February 25, 2010 Share Posted February 25, 2010 The sooner it comes down the better. On this note - I would hope HMRC block the administration. Or at the minimum get some sort of agreement where the creditors get the parachute payments. Are their parachute payments seen as assets? If so, and particularly if Portsmouth are still in admin come August, their creditors will be surely knocking their doors down to get them. Link to comment Share on other sites More sharing options...
Claudio Tankisco Posted February 25, 2010 Share Posted February 25, 2010 As bad as this sounds I'm glad (in a way) that SWFC haven't achieved investment.....nor gone down the administration route The Premier League money bubble is on the verge of bursting and has been on the brink of doing this for years and when it does there could very well be some high profile casualties......and we will see a massive drop in players wages and income for Premier League clubs......I just don't see how the age of extraordinarily high wages going to players can carry on In the Portsmouth situation.....I hope that they go out of business entirely (with respect to Portsmouth fans) and this makes the Premier League sit up and realise that the party is over..... For too long the men in flash suits inLondon have rules football with an iron fist and ZERO common sense....this must end as soon as possible Link to comment Share on other sites More sharing options...
Guest totemowl Posted February 25, 2010 Share Posted February 25, 2010 Sky Sports News have been reporting they will get the £37M parachute payments from next season - the implication that they get them after they have come out of admin. It's though a deal has been done. If so, if these facts do stand up, it seems fraudalent to me - against the creditors and against those teams, especially in the Championship, because it hands Portsmouth a huge financial advantage. Link to comment Share on other sites More sharing options...
HarrowbyOwl Posted February 25, 2010 Share Posted February 25, 2010 There's a good Q&A blog here, although it doesn't specifically talk about the parachute payment issue: http://www.bbc.co.uk/blogs/mattslater/2010..._crisis_qa.html Link to comment Share on other sites More sharing options...
Sonny Posted February 25, 2010 Share Posted February 25, 2010 I'm not hoping that Portsmouth go out of business just to prove a point, I wouldn't wish that on anyone. There's enough writing on the wall without wishing misery on thousands of innocent fans who are no different from you or I. Those in charge of the game need to grow a backbone, it would be a flipping tragedy if that's what it took for this to happen. Link to comment Share on other sites More sharing options...
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