Leaders
Dallmeier

Business Directory

Browse the Directory

Sign Up to the Directory

Levy
FC Business Twitter
FC business Linked in
FC Business facebook
FC Business Youtube

Portsmouth's Bank Account Frozen

Tue 31st Jan 2012 | Money & Finance

Portsmouth have failed to pay their players’ wages after its accounts were frozen following a winding-up petition that was issued by HMRC.

A statement released by the club yesterday read:

“Further to our recent update that a winding-up petition has been issued and publicised to Portsmouth Football Club, the club’s bank accounts have been frozen, which is the normal process in these circumstances.

“The club is now seeking a validation order from the court in order to have its bank accounts unfrozen so that staff wages and suppliers can be paid. This is expected to take a few days and once obtained this will allow our bank accounts to be reactivated.

“Based on our current information we expect this process to be completed by the end of the week and would like to thank all our staff, fans and suppliers for their ongoing support.”

HMRC issued the petition following the revelation by administrator Andrew Andronikou, that they had missed two tax payments of £800,000 to HMRC.

Portsmouth will now appear in court on the 20th Feb and face being forced out of business unless new funds can be found.

The club’s parent company, Convers Sports Initiatives (CSI), was placed in administration in November 2011 following the arrest of its Russian owner, Vladimir Antonov. But the club’s administrator has struggled to generate expected funds from the sale of other CSI businesses that might have assisted the club's position.

The club's working capital position has therefore been severely stretched while they seek to resolve the ownership situation and has resulted in the debts that are due to HMRC.

It’s reported by BBC South that any prospective purchaser would need to provide £12m as proof of funds, and assurances they could meet another £20m in repayments to former creditors, Balram Chainrai and Alexandre Gaydamak.

Written by: Aaron Gourley

http://www.buttonshut.com http://www.buttonshut.com http://www.buttonshut.com

---------------------------------------------------------------------------------------------------

RETURN TO LATEST NEWS SECTION

SUBSCRIBE TO THE FCBUSINESS RSS FEED

If you have any football business related news stories you’d like to share then please contact us – agourley@fcbusiness.co.uk or ryan@fcbusiness.co.uk

Add to: Google Google | Yahoo Yahoo | Live Live | del.icio.us del.icio | Digg Digg |

Related Articles

Watford FC: An Unlikely Financial Success Story?

Wed 26th Apr 2017 | Money & Finance

The business model carried out by the owners of Watford FC is unlikely to be adopted by too many sectors outside of football, but by hiring and firing a conveyor belt of managers, they have managed to...

Newcastle United & West Ham Face Tax Investigation

Wed 26th Apr 2017 | Money & Finance

Newcastle United and West Ham United have been targeted by HMRC for alleged Tax and National Insurance fraud. Officers are understood to have raided the offices at St James’s Park and the London...

Premier League Revenues Grow But Losses Return

Thu 20th Apr 2017 | Money & Finance

Premier League clubs’ revenues increased to a new record of £3.6bn in 2015/16, according to Deloitte, the business advisory firm. Analysis of the financial results of Premier League clubs...

7 Tips From The Best Online Football Merchandise Stores

Thu 13th Apr 2017 | Money & Finance

CEO, Lewis Holland and the team at DiscountIF team have been studying various merchandise stores of football clubs in the UK. This article was originally posted here. We’ve compiled a short list...