The full scale of Portsmouth’s debt crisis has been revealed by the club’s joint administrator, Andrew Andronikou, who reports that the club’s debts stand at £105 million – nearly £50 million more than previously estimated.
Andronikou has laid out in a 70 page report to the club’s creditors on a penny-by-penny basis how the club has come to assume such colossal debts, despite player sales totalling £80 million in the last 18 months.
Creditors are to meet with Andronikou in a fortnight, where they are expected to be offered a settlement ranging from 20p – 23p for every pound owing.
Detailed extracts of the report were published on the Sporting Intelligence website this morning and lay bare the shocking state of the club’s finances.
More than £17million is owed in player transfers, including significant sums for players, such as Glenn Johnson and Sulley Muntari, who have long since moved on.
Historic player bonuses totalling £1.86 million remain outstanding, including £282,000 owed to Peter Crouch, who rejoined Tottenham Hotspur last summer.
£17.1 million is owed to the tax man, while a further £38 million is owed to unsecured creditors. This includes some 400 individuals and companies, ranging from the Scout Association (£697) to Sulamain al-Fahim (£5 million), the ill-fated Dubai businessman whose farcical ownership of the club lasted just 40 days last autumn.
Speaking on BBC Radio FiveLive this morning, EPL ceo Richard Scudamore was damning of the mess that had been revealed at Fratton Park.
“If a Premier League club falls into administration it is down to bad management at the club,” he said.
“If you start the season knowing you are going to get between £30m and £50m as a starter fund from the Premier League… it is entirely possible to get yourself organised so that you don’t get yourself into the difficulties that Portsmouth got into.”
When asked if the Premier League could throw the south-coast club a financial lifeline, Scudamore responded: “That’s absolutely crazy. Whose money would you give them? Another club’s money?”
With reporting from James Corbett ([email protected])
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