10-02-2010, 03:16 PM
If Pompey as a business go into administration, then FA rules dictate that they lose 10 points. If they carry on playing and can fulfil all of their fixtures to the end of the season, then all points still stand. It's only if the club folds completely and cannot complete the season that the points are then deducted from the other teams.
Look at the other teams that have entered administration. They are still able to fulfil their fixtures.
However, the difference here would be whether HMRC would allow them to step into administration in the hope that a buyer can be found. If they do, no one loses points. If not, then there is no Portsmouth and therefore, no points to be had.
Anyway, they have a stay of execution....
Portsmouth have been given a seven-day stay of execution after getting more time to fight a winding-up petition.
The club now have until 1600 GMT on 17 February to file a "statement of financial affairs" proving they can pay their creditors.
Her Majesty's Revenue and Customs had taken Portsmouth to court over an unpaid tax bill amounting to £7.4m.
If Pompey file the statement, the earliest the case could return to the High Court is Friday 19 February.
Court registrar Christine Derrett said she feared the company would continue to trade and build up more debts that would not be paid.
"I am very concerned about the financial status of this company," she said. "It seems to me there's a very real risk that this company is undoubtedly trading while it is insolvent.
PORTSMOUTH IN CRISIS
May 2009: Club accept takeover bid from Sulaiman Al Fahim
Oct 2009: Al Fahim sells 90% of his shares to Ali Al Faraj
Oct 2009: Premier League issues embargo on Portsmouth registering new players
Dec 2009: Portsmouth fail to play players for a third time
Jan 2010: Premier League confirms it will distribute TV payments directly to Portsmouth's creditors. Transfer embargo lifted
4 Feb 2010: Hong Kong businessman Balram Chainrai's company Portpin takes a controlling interest
9 Feb 2010: Portsmouth fail to agree a deal with HMRC to pay their outstanding tax bill
10 Feb 2010: High Court grants club seven-day stay of execution
"I'm obviously conscious that, by making a winding-up order, it would have very severe consequences not only for the company as a business but for the supporters themselves, but that's not a consideration that I strictly take into account."
Gregory Mitchell QC, who represented HMRC, said: "It's quite clear, beyond any doubt at all, that this company is insolvent.
"They have failed to provide any evidence at all as to their solvency. There are many debts and they are unpaid."
However, Pompey were granted extra time to settle their tax debt after arguing they had received two serious offers to buy the club.
As well as the VAT bill Portsmouth is disputing with HMRC, it also owes £4.7m in unpaid PAYE and National Insurance which were not part of the court petition on Wednesday.
BBC sports news correspondent Gordon Farquhar explained: "Portsmouth have proposed to appoint a specialist insolvency accountancy firm to produce what they call a statement of affairs.
"This is to go through the club's accounts and say 'this is precisely what the future predictive income is, this is the current level of debt and this is the cash which may be coming into the company so we can present you with an accurate reading of exactly where the club is at in order to inform your decision'.
"After seven days the copy of that report will be given to the Revenue and Customs people to look at, to make their decisions and make their comments on it.
"Then everybody is back in court as soon as possible after the 19th of February to settle this once and for all."
Last week Balram Chainrai, a Hong Kong-based businessman, became the club's fourth owner of the season.
He is looking to sell the club quickly and has no wish to see it go under as he has made substantial loans to Portsmouth.
Bottom-of-the-table Pompey have debts of £60m and are five points from safety following a 1-1 home draw against Sunderland on Tuesday.
Their financial woes have meant their players have been paid late on four occasions this season.
Portsmouth are also involved in a separate dispute with former owner Sacha Gaydamak over whether they have missed a deadline in paying a £9m chunk of the £28m they owe to him.
The Fratton Park team are also being sued by former defender Sol Campbell for £1.7m for unpaid image rights.
Source: BBC.co.uk
Look at the other teams that have entered administration. They are still able to fulfil their fixtures.
However, the difference here would be whether HMRC would allow them to step into administration in the hope that a buyer can be found. If they do, no one loses points. If not, then there is no Portsmouth and therefore, no points to be had.
Anyway, they have a stay of execution....
Portsmouth have been given a seven-day stay of execution after getting more time to fight a winding-up petition.
The club now have until 1600 GMT on 17 February to file a "statement of financial affairs" proving they can pay their creditors.
Her Majesty's Revenue and Customs had taken Portsmouth to court over an unpaid tax bill amounting to £7.4m.
If Pompey file the statement, the earliest the case could return to the High Court is Friday 19 February.
Court registrar Christine Derrett said she feared the company would continue to trade and build up more debts that would not be paid.
"I am very concerned about the financial status of this company," she said. "It seems to me there's a very real risk that this company is undoubtedly trading while it is insolvent.
PORTSMOUTH IN CRISIS
May 2009: Club accept takeover bid from Sulaiman Al Fahim
Oct 2009: Al Fahim sells 90% of his shares to Ali Al Faraj
Oct 2009: Premier League issues embargo on Portsmouth registering new players
Dec 2009: Portsmouth fail to play players for a third time
Jan 2010: Premier League confirms it will distribute TV payments directly to Portsmouth's creditors. Transfer embargo lifted
4 Feb 2010: Hong Kong businessman Balram Chainrai's company Portpin takes a controlling interest
9 Feb 2010: Portsmouth fail to agree a deal with HMRC to pay their outstanding tax bill
10 Feb 2010: High Court grants club seven-day stay of execution
"I'm obviously conscious that, by making a winding-up order, it would have very severe consequences not only for the company as a business but for the supporters themselves, but that's not a consideration that I strictly take into account."
Gregory Mitchell QC, who represented HMRC, said: "It's quite clear, beyond any doubt at all, that this company is insolvent.
"They have failed to provide any evidence at all as to their solvency. There are many debts and they are unpaid."
However, Pompey were granted extra time to settle their tax debt after arguing they had received two serious offers to buy the club.
As well as the VAT bill Portsmouth is disputing with HMRC, it also owes £4.7m in unpaid PAYE and National Insurance which were not part of the court petition on Wednesday.
BBC sports news correspondent Gordon Farquhar explained: "Portsmouth have proposed to appoint a specialist insolvency accountancy firm to produce what they call a statement of affairs.
"This is to go through the club's accounts and say 'this is precisely what the future predictive income is, this is the current level of debt and this is the cash which may be coming into the company so we can present you with an accurate reading of exactly where the club is at in order to inform your decision'.
"After seven days the copy of that report will be given to the Revenue and Customs people to look at, to make their decisions and make their comments on it.
"Then everybody is back in court as soon as possible after the 19th of February to settle this once and for all."
Last week Balram Chainrai, a Hong Kong-based businessman, became the club's fourth owner of the season.
He is looking to sell the club quickly and has no wish to see it go under as he has made substantial loans to Portsmouth.
Bottom-of-the-table Pompey have debts of £60m and are five points from safety following a 1-1 home draw against Sunderland on Tuesday.
Their financial woes have meant their players have been paid late on four occasions this season.
Portsmouth are also involved in a separate dispute with former owner Sacha Gaydamak over whether they have missed a deadline in paying a £9m chunk of the £28m they owe to him.
The Fratton Park team are also being sued by former defender Sol Campbell for £1.7m for unpaid image rights.
Source: BBC.co.uk