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Page last updated at 12:16 GMT, Wednesday, 21 April 2010 13:16 UK

Portsmouth administrators reveal club debts of 120m

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Report - The price of Pompey's debts

Portsmouth's administrators have revealed the relegated Premier League club's debts are £119m.

A letter published by the administrator reveals the extent of the debt and adds they are owed a total of £14m from Tottenham, Inter Milan and Liverpool.

In February, Portsmouth became the first Premier League club to enter administration with debts of £60m-£70m.

Premier League chief executive Richard Scudamore said they only had themselves to blame for their financial situation.

"Back in January, I said that if a club enters administration while in the Premier League then it would be down to bad management of the club, and it is," he told BBC Radio 5 live.

The letter from administrators says Portsmouth's actual debt is close to double what was reported in February, although they are still owed money from the transfers of Jermain Defoe to Tottenham, Glen Johnson to Liverpool and Sulley Muntari to Inter Milan.

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Sent to all Portsmouth's known creditors - and it can be accessed in full on the administrators' website - it reveals almost £38m is owed to former owners while more than £9m is due to 15 agents.

According to administrator Andrew Andronikou, Pini Zahavi, who helped facilitate the separate takeovers of the club by French businessman Alexandre Gaydamak and Ali Al-Faraj, has claimed for £2m while another agent is owed £2.1m for one deal alone.

Nine players, including Muntari, Sol Campbell and Niko Kranjcar who are no longer at the club, are owed a combined total of £3.04m in image rights.

Portsmouth also owe bonus payments to 28 players, including Peter Crouch and David James, totalling £1.86m, while the club's total unpaid tax bill is £17.1m.

They also owe Spurs a £1m sell-on fee over goalkeeper Asmir Begovic, who was linked with the north London club in January before deciding to join Stoke instead.

Pompey also owe the White Hart Lane club £500,000 over the loan signing of Jamie O'Hara and £3m from the signing of Kevin Prince Boateng.

There is a full list of every company owed money by the stricken south-coast side, with debts for as little as £1 displayed in a comprehensive table.

Andronikou, who initially predicted the club debt would reach £85m, needs at least 75% of the unsecured creditor base to agree to a Company Voluntary Arrangement that would see all of the club's debts settled at a reduced rate over the coming years.

If he does not manage to win the agreement of that percentage of the creditor base, it is unlikely he will meet his target of getting Portsmouth out of administration in the first week of June.

Andronikou told BBC Radio Solent the figures published in the report "speak volumes".

"There are question marks and those questions I'm sure will be answered in time," he said. "At the moment I don't want to be too dismissive or evasive. We are just really focused on getting the club out of administration."

A creditors meeting to discuss the proposals will be held on 6 May.

Scudamore said FA Cup finalists Portsmouth can blame no-one but themselves for entering administration.

"If you start the season knowing you're going to get between £30m and £50m from the Premier League throughout the year, it is entirely possible to organise yourself so you don't get into the difficulties that Pompey have got into," he said.

Scudamore pointed out that money distributed by the Premier League from the sale of television rights overseas is shared equally between the 20 clubs, unlike domestic revenue.

"You cannot possibly link the distribution of our income to Portsmouth's woes," he added.

"All the money is distributed evenly, so Wigan and Burnley this season will have earned as much international television exposure as Manchester United, Chelsea and Arsenal.

"That's an important redistribution mechanism - and that's what stands us out from the other leagues in Europe, particularly the Spanish.

"You can't actually say it's about the way we redistribute out money that has caused Portsmouth's problems."



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see also
Portsmouth Europa appeal rejected
22 Apr 10 |  Portsmouth
Pompey must appeal for Cup money
08 Mar 10 |  Portsmouth
Pompey administrator role probed
02 Mar 10 |  Portsmouth
Kiwi businessman eyes Pompey deal
01 Mar 10 |  Portsmouth
Points deduction unjust - Grant
27 Feb 10 |  Portsmouth
Portsmouth enter administration
26 Feb 10 |  Portsmouth
Pompey labelled 'dysfunctional'
26 Feb 10 |  Portsmouth


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