Portsmouth’s Administration – Postponement Or Salvation?

Ian

Ian began writing Twohundredpercent in May 2006. He lives in Brighton. He has also written for, amongst others, Pitch Invasion, FC Business Magazine, The Score, When Saturday Comes, Stand Against Modern Football and The Football Supporter. Ian was the first winner of the Socrates Award For Not Being Dead Yet at the 2010 NOPA awards for football bloggers.

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10 Responses

  1. Rob says:

    “The FA insists that all football debts are settled in full, and Portsmouth still owe at least £10m for Sulley Muntari.”

    This is interesting, as it’s not 100% true, and could therefore open up a bigger can of worms, on a bigger scale. The FA insists that all Football Creditors are paid – this is a little different from football debts, as Udinese may well find out.

    As far as the FA are concerned, Football Creditors are:

    The FA
    The Premier League, Football League, Football Conference, Northern Premier League, Southern League, Isthmian League and their clubs
    Any full-time or part-time employee of those clubs (or ex-employee if owed money from their tenure) – note, no distinction is made between footballing and non-footballing employees, so admin staff are considered Football Creditors.
    The Professional Footballers’ Association
    The Football Foundation
    Any Affiliated Association (essentially the County FAs)
    Any other affiliated clubs or leagues

    However, neither Udinese or the FIGC (Italian FA) are affiliated to the FA. So, as the money owed for Muntari appears to be a debt, rather than an a future instalment, Udinese are a normal creditor, and have to line up with the Taxman, St John Ambulance and the other non Footballing Creditors. Of course, because most of the clubs that have entered administration haven’t bought players from abroad, and owed money for them, this hasn’t come up before.

    However, when Ipswich were in administration in 2003, they still had outstanding instalments due for three foreign players who had been bought. But, in one of those cases – that of Thomas Gaardsøe signed from Aalborg Boldspilklub (AaB) – there were payments due triggered by the number of games Gaardsøe played, and £100k was owed when Ipswich went into administration, and AaB had to vote in the CVA and accept a reduced amount, because they weren’t considered a Football Creditor. So, if the Muntari money is considered a debt, then Udinese could find themselves getting stiffed big time, and if they have to accept 10p in the pound or less, it will be interesting to see if the FIGC or UEFA have anything to say.

  2. Paul Davis says:

    Andronikou was our administrator at Swindon. If he’s appointed, God help Portsmouth and their creditors. You’re right that administrators are bound to act in the best interest of creditors but he showed no sign whatever of doing that at Swindon, or in the best interests of the club. Instead his overseeing of both our administration and subsquent CVA seemed suspiciously aligned with the interests of his mate Mike Diamandis who’d taken the club to the brink of ruin in the first place. But then, it’s not often in the insolvency trade that you get a customer who brings you as much repeat business as Diamandis has brought Andronikou over the years.

  3. Martin says:

    It is an absolute disgrace that a club WITHIN the Premiership cartel can go into administration at all. As if getting £50m pa. in TV money and sponsorship isn’t more than enough to run a decent club!

    Storrie and his henchmen should be fired, fined his entire salary since “working” there and tried for tax evasion.

    But more than likely Portsmouth will just “do a Leeds” and escape paying their real debts because their loyal fans are too valuable to the Football League to ignore.

  4. RichardG says:

    B*ll*cks to it all. This is tantamount ot cheating in my view. Clubs spending money they don’t have, and taking players away from other clubs that probably could have afforded them at reasonable wages etc. It’s about damn time that football clubs were required by the footballing authorities to be run within their turnover. Besides, isn’t it illegal to allow a company to trade whilst knowingly insolvent?

  5. Dermot O'Dreary says:

    Martin – I agree 100% with you about Storrie – he is of ocurse already being charged with tax irregularities.

    I was amazed when I saw that he’s worked at four football clubs – West Ham, Southend, Notts County and Portsmouth. There’s a common link here ….

  6. Martin says:

    Indeed Dermot.

    You would think fans would have learned after the daft West Ham bond scheme he introduced, but sadly fans are (hopefully were) too divided, too stupid or just too apathetic to run such exploitative chancers out of all football for good.

  7. Gossie says:

    Portsmouth have over the last two years signed players that they have not paid for, and could not afford. With those players, they have stayed in the Premier League and won the FA Cup. Had they not had those players, which they should not have, then maybe Cardiff or someone else would have won the FA Cup, and one of those teams that got relegated in the last two seasons would still be in the Premier League. Even the Premier title itself may have gone to another team, if Portsmouth results had been different by playing only players they could afford.
    This club should not be put into Administration, as its been there before and not learned from it, but should be wound up and put out of existance.
    Come on you Saints

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