6 replies to this topic

[Laurie]

Portsmouth went into administration today, for the second time in 2 years.

This seems crazy, considering administrators handed the club over to a new buyer after being forced to intervene in 2010.

How could this be allowed to happen? If we can't trust administrators to sort a club out and make sure that any new owners are 'fit and proper', then who can we trust?

Quote

Portsmouth have avoided liquidation by entering administration for a second time in two years. Debts of £4m had made the club's predicament so dire they were threatened with having the gas and electric supply cut off. Portsmouth had even been unable to afford to travel to Barnsley for Saturday's Championship game until £2m in their accounts was unfrozen after administration was granted.

Trevor Birch, the new administrator who was wanted by Portsmouth's biggest creditor Revenue & Customs but not by the club, urged fans to "keep the faith" though the club could now be docked 10 points as they were in 2010 – an action which would drop them to fourth-bottom in the Championship. Two years ago, the penalty caused Portsmouth's relegation from the Premier League.

Questions will now be asked regarding how Convers Sports Initiatives, led by the Russian businessman Vladimir Antonov, was able to buy the club last summer and why the board led by the chief executive David Lampitt allowed Portsmouth's future to again be placed in jeopardy.

Lampitt said: "I absolutely see my future being with Portsmouth, to get the club to where we are today after what happened in 2010 and with everything that has been going on in the background recently is quite an achievement. All the fans would agree that having the right owner, rather than the one with the biggest wallet, is what we need. That would be the best outcome for the football club. It's been a very tough two years – a really difficult period and I don't think it's going to get any easier just yet.

"The main point was that we stopped the club going back to court on Monday to potentially have it wound up. I'm quite easy about having a new administrator. A fresh pair of eyes looking at everything will be a good thing. I'm taking Trevor down to the club this afternoon to explain the situation to the staff and spend time with him, starting to go through everything."

Birch, a former chief executive of Leeds United and Chelsea, was given the role after HMRC won the legal argument to have him appointed over Andrew Andronikou, the administrator of Portsmouth's parent company who was the club's preferred choice.

Birch attempted to strike an optimistic note, telling Sky Sports News: "There needs to be a new face for the supporters, a new face that is looking at every aspect of the club. Just to give it some new vitality. I suppose I'm used to dealing with clubs in crisis. You could say most of the Championship is in crisis – 30% of the clubs in the Championship are paying wages in excess of 100% of turnover. So that in itself tells a story. I'm used to dealing with that kind of pressure.

"The intention is to try to sell the club as a going concern. You have to travel hopefully and confidently. Hitherto there has always been somebody to come out of the woodwork to buy football clubs. Maybe this appointment might be the impetus for somebody new to make a bid. The most important thing now is to try to achieve some stability and to put the club on an even keel."

To fans he said: "Keep the faith. Keep supporting and hopefully we'll find a solution together."

With Portsmouth owing HMRC around £2m and a similar amount to smaller creditors, the Football League explained why CVS was allowed to buy it.

A statement said: "The Football League would like to clarify that at all times following its takeover of Portsmouth, Convers Sports Initiatives – and in particular Mr Vladimir Antonov – complied with the requirements of the owners' and directors' test as set out in the regulations of the Football League."

[jaybee1978]

Is this thread for Portsmouth fans only?

[craig]

jaybee1978, on 17 February 2012 - 07:37 PM, said:

Is this thread for Portsmouth fans only?

nobody can answer that.

This is terrible financial management of the club and questions have to be asked

[douglasta]

jaybee1978, on 17 February 2012 - 07:37 PM, said:

Is this thread for Portsmouth fans only?

If the title was, "calling all Pompey fans" then yes.....as it is, no. See how that works?

[craig]

You would think that a debt of £4 million would be manageable for a club with its size and money from the league.

[jaybee1978]

craig, on 17 February 2012 - 08:54 PM, said:

You would think that a debt of £4 million would be manageable for a club with its size and money from the league.

Not if they are being badly run and spending money that they can't afford to.

[jaybee1978]

Portsmouth may not have enough money to finish seasonPortsmouth administrator Trevor Birch has admitted the club may not have enough money to see out the season.

Birch addressed fans for an hour at Fratton Park on Wednesday, a day when 30 members of staff were made redundant.

However, he says he was left with little choice but to make cuts as he tries to ensure the club's remaining money lasts as long as possible.

"We are struggling to make the end of the season," Birch told BBC Solent.

Trevor Birch meets Pompey fans - key pointsThe club are struggling to have enough money to make it to the end of the season
Chief executive David Lampitt was let go for financial reasons (as with the 30 other redundancies)
Trevor Birch not expect to make any more redundancies.
The Football League will not let them bring in any more players in unless they go down to 14 fit players
A players' representative will meet with Birch on Thursday where Birch will ask them to defer some wages until end of season
Birch will decide who the club is sold to and not creditor Balram Chainrai
Administrators are open to the idea of a supporters trust buying the club.

Portsmouth entered administration last week for the second time in three years, for which they were docked 10 points by the Football League to leave them in the Championship relegation zone.

Players and staff have not been paid since December, and chief executive David Lampitt was made redundant on Wednesday along with other senior members of staff.

Birch also revealed that he will meet with a players' representative on Thursday and the squad will be asked to defer some of their wages until the end of the season.

Birch also told fans Pompey's administrator also told fans he will make the decision over whom the club is sold to - rather than major creditor Balram Chainrai, who is owed £17m.

He hopes Wednesday's redundancies will be the last at the club.

"It was a purely economic decision that we had to make," Birch said.

"We have a very small amount of money that we have to stretch out for the rest of the season and David and his fellow directors have joined with other redundancies that we have had to make.

Use accessible player and disable flyout menus
"I feel sorry for them as they have all worked so hard over the past few months in difficult circumstances, but we have to try and get to the end of the season.

"That's it now in terms of the redundancies. We don't expect any more; we do it in one foul swoop and hopefully that will take us through to the end of the season."

Pompey's squad is thinning by the week with injuries also limiting manager Michael Appleton's options, and Birch revealed that the Football League will not allow them to bring new players in.

"The cash available is worse than we first feared," said Birch.

"Some of the bits of assumptions that were made in terms of income to take us forward we've now taken a more conservative view on that. We've got to conserve the cash to make sure it takes us through to the end of the season.

"The Football League will not let us bring any players in and they don't want us to have a competitive advantage when we still owe clubs money.

"If we have less than 14 fit players then they will allow us to bring someone in."

Birch is open to the idea of a fans consortium buying the stricken club, adding: "We won't rule out at all a supporters trust buying the club if that is the best game in town and certainly we will look at it. They can bid on their own or along with another interested party."

taken from bbc sport