By Andrew Warshaw
April 21 – The future of ailing English Premier League club Portsmouth appears even more grave following the revelation that the already relegated club’s debts are close to double the original estimation.
Portsmouth’s administrators have announced the club have debts amounting to a massive £119 million ($183 million), two months after the club entered administration – the first Premier League club to do so – owing what was believed to be £60-70 million ($92-$107 million).
Although the club are still owed £14 million ($21 million) from player sales to Tottenham Hotspur, Liverpool and Inter Milan, the new figure - sent by the administrators to all major creditors – is a stunning indictment of Portsmouth’s mismanagement over the years.
Almost £38 million ($58 million) is owed to a variety of former owners while more than £9 million ($14 million) is due to 15 different agents.
Nine players no longer at the club are owed a combined total of £3.04 million ($4.62 million) in image rights while bonus payments of £1.86 million ($2.85 million) are owed to 28 players, past and present.
Administrator Andrew Andronikou needs at least 75 per cent of the unsecured creditor base to agree to a Company Voluntary Arrangement that would see all of the club’s debts settled at a reduced rate over the coming years.
If he does not get it, it is unlikely he will meet his target of getting Portsmouth out of administration in the first week of June.
That would heap even more pressure on the club in its search for new owners, especially given the fact that it begins life back in the second tier of English football next season.
A creditors meeting to discuss the proposals will be held on May 6.
Ironically and against all odds, Portsmouth have reached next month’s FA Cup final from which they will accrue important revenue - but not nearly enough to wipe out the debt which critics say have been of the club’s own making.
It is not even clear which players will be able to play in the final against Chelsea as Portsmouth tries desperately to meet salary demands.
The sale of television rights overseas is shared equally between 20 Premier League clubs, regardless of size, and Premier League chief executive Richard Scudamore said he had no sympathy for Portsmouth.
“If you start the season knowing you’re going to get between £30 million ($46 million) and £50 million ($77 million) from the Premier League throughout the year, it is entirely possible to organise yourself so you don’t get into the difficulties that Pompey have got into,” he said.
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