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Portsmouth gone into administration


TrentVilla

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While the media is full of the tax evasion story of Redknapp and Mandric it is rather ironic that their former club Portsmouth is making fewer headlines for their take avoidance.

The Redknapp story which seemingly is centred around him not paying tax on his cut of the profit from players sales while Portsmouth manager is in sharp contrast to the fate of the club.

With reports suggesting that a new owner would need in the region of £40m just to purchase the club it is hard to see what the future holds for them.

The FA, the Football League and all those formerly involved in the club should hang their heads in shame.

Portsmouth have been issued with a winding-up petition by HM Revenue and Customs over unpaid tax.

A source at HMRC confirmed to BBC Radio Solent that the petition against Pompey over unpaid tax has been published.

Chief executive David Lampitt confirmed on Saturday that Pompey had failed to meet two payments to HMRC.

Portsmouth are searching for new owners after parent company Convers Sports Initiatives (CSI) entered administration in November.

"Ensuring tax is paid on time should be at the centre of a football club's business strategy just as it should be for any other enterprise," said a HMRC spokesman.

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There is little HMRC can do for a business - be it a football club or not - whose viability is dependent on not paying the UK taxes to which they are liable

HMRC spokesman

"Any business that regards paying tax as an optional extra after other expenses are met, or that uses tax collected from employees or customers as working capital, is potentially heading for trouble.

"It is only fair to those clubs and to other taxpayers who do meet their obligations that HMRC enforces payment of tax debts owed - and if need be, issues a winding up petition or seeks to appoint an administrator.

"There is little HMRC can do for a business - be it a football club or not - whose viability is dependent either on not paying the UK taxes to which they are liable, or on special treatment not available to other customers with similar tax affairs."

Italian businessman Joseph Cala pulled out of a deal to buy Pompey on Friday.

There is an urgency to complete a deal with fresh backers, as investment is needed if Portsmouth are to meet ongoing running costs.

"This period, while we search for a new owner, was always going to be difficult from a cash flow point of view," Lampitt said on Saturday.

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We are in a difficult position and will remain in a difficult position until the ownership is sorted

Portsmouth chief executive David Lampitt

"The club does not have the funding that would have been there if our previous owner had been in place. It has been a difficult two months to balance the financial position of the football club.

"We are in a difficult position and will remain in a difficult position until the ownership is sorted.

"For the time being, it is a matter between us and HMRC and we have to manage that as best we can."

CSI's administrator Andrew Andronikou said on Friday that he hoped to finalise a deal to find a new owner within a week.

He also revealed that Pompey has missed two payments of £800,000 to HMRC totalling £1.6m.

"The process of finding a new owner continues. We have got other interested parties, and we have had other interested parties all along," said Andronikou.

BBC South understands that any 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.

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It is a sad state of affairs, I feel for the fans I really do but HMRC need to take a stand against this behaviour, with Harry too. Pompey have had a chance or two to wipe the slate clean but just haven't been able to do it. If they do go bust I am sure they will rise again through the leagues, their fans will make sure of it.

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Agreed time to see HMRC pull the plug.

I'm all for a bit of cheeky cash in hand stuff here and there as I've said on another thread, I also don't object to people trying to pay as little tax as possible fair play to them. But total non-payment is taking the piss.

At least I wont have to be subjected to the BBCs ibsession with that fat clearing in the woods with the blue hair and the bell anymore.

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Yeah it is pretty much that simple and sadly I can only see one of those being realistic.

That's what I was thinking too. They seem to have been in administration for ages and there always seems to be some supposed takeover that never happens. AFC Portsmouth to appear in the bottom leagues soon?

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Yeah it is pretty much that simple and sadly I can only see one of those being realistic.

That's what I was thinking too. They seem to have been in administration for ages and there always seems to be some supposed takeover that never happens. AFC Portsmouth to appear in the bottom leagues soon?

Their ground will fit right in!

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  • 3 weeks later...

I hate paying tax because imo the government waste most of it, but it's a fact of life that it has to be paid. How these clubs keep getting away with it amazes me It's a though football is an exception to the rule. I can't get away with not paying tax and where I work if we didn't pay tax we would soon have a visit from HMR & C.

Football is in a mess, too many greedy bastards involved. If it all collapses then good.

Let's get back to reality for **** sake. Rant over.

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If it all collapses then good.

Let's get back to reality for **** sake. Rant over.

Totally agree. But if a group of fans (who aren't to blame for the club's tax problem) can avoid having their football club go out of existence in the process then that's even better. We need to be punishing those responsible and limiting the collateral damage as much as possible. That's where football is slightly different from the norm. I appreciate that legally it's the same as it is a company, but from a community perspective it is unique.

Hopefully Pompey can come out of this latest episode better than the last one. They probably need to go down in order to rebuild though.

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Yes I have major sympathy with the fans as it's totally out of their control. Fans need to be involved but with all the money involved the pigs have taken over the trough completely.

If it was our club we'd be devastated but until the whole philosophy of football changes I can only see things getting worse.

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