Stricken Portsmouth FC have blamed their current financial plight on the failure to sell their collapsed parent company and admitted they “may face administration” and a points deduction.
Despite Convers Sports Initiatives plc (CSI) falling into administration in November, Portsmouth claim they were “given assurances” by the administrator and its charge-holders the club would still be funded.
But the drop in revenue stream following the administration of CSI has left the club’s very own future now hanging in the balance.
In a statement the Championship side – nicknamed Pompey – said: “Ultimately if the club cannot meet its debts, it may face administration and the associated impact both operationally and from a football point of view (in terms of an automatic points penalty).”
And the South Coast side also pointed the finger at administrator Andrew Andronikou for not having “generated expected funds” from the sale of other CSI businesses.
The club – which owes the taxman some £1.8m – said: “We knew that the club would not generate sufficient funds to support itself through this period.
“However, when CSI, the club’s parent company, went into administration we were given assurances by the administrator of CSI and the charge-holders over CSI that the club would be funded through this period until a new owner was found.
“This has not happened. One of the reasons for this is that the administrator has not generated expected funds from the sale of other CSI businesses that might have assisted the club’s position.”
As a result of the lack of funds the club said its capital position had been “severely stretched” leading to the current debts with HM Revenue and Customs (HMRC).
The club – which confirmed a hearing for the winding-up petition will take place on February 20 – also blamed HMRC for not delaying the announcement the club had been issued with the order.
It said: “We understand that they will be advertising this week, but some information has been released to the media in advance.
“We had asked them to delay this process (as they have the discretion to do) as it is likely to harm the club’s position, the sale process and possible player trading, potentially to the detriment of HMRC and other creditors.”
Although parent company administrator Andronikou has previously insisted the club will not be hit with a points deduction, Pompey admitted it is still awaiting a report from the Football League on its position.
Andronikou, of UHY Hacker Young, told Insolvency News he had not seen the club statement and that he would be busy all morning dealing with administrative affairs.
By Andy Pearce
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