Portsmouth on the Brink According to Administrator
Mon 23rd Jul 2012 | Clubs Ownership
Portsmouth Football Club is on the brink of going out of business according to administrator, Trevor Birch.
The League One club announced on Friday that consultation with staff about possible redundancies had commenced.
The club must reduce its wage bill as a condition of the proposed takeover by Portpin.
Trevor Birch, partner at PKF and joint administrator of Portsmouth Football Club, said: “Under the terms of the CVA that was agreed with creditors at the end of June, Portpin agreed to complete its purchase of the club on the condition that the wage bill was reduced through player sales and compromise agreements.
“We have made progress in this respect over the past few weeks but there is still more that needs to be done if the club is to meet the pre-conditions for Portpin’s purchase. Time is running out and, unless I can see a greater probability of player sales and compromises being completed in the near-term, the purchase will not go ahead and the club will have to close.
“We have spoken to all of the club’s staff and players and started a redundancy consultation period. I sincerely hope that we can complete the sale of the club and avoid the need for redundancies – and I will continue to do all I can to safeguard the future of the club – but I believe that staff need to be aware of the situation so that they have as much of an opportunity as possible to explore other options.
“This has been an incredibly difficult time for the staff, many of whom have loyally served the club for a number of years, and I recognise that it is extremely upsetting for them.”
Birch was heavily critical of certain players at the weekend who he feels are holding back efforts to save the club.
"Ben Haim represents everything that has gone wrong at Portsmouth, the excessive wages that were given four or five months before they went into administration the first time," he told The Independent newspaper.
"There were no relegation clauses in his contract, and here we are in League One trying to negotiate a way out of it.
"The player and his agent haven't caused the problem but they are not helping.
"It's not just him, but his contract is by far the largest.
"The creditors have accepted Chainrai's offer but it is conditional on me reaching an agreement with those players. I'm working night and day to persuade them that we are running out of time."
Posted by: Aaron Gourley
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