Portsmouth cash offer rejected

| Thursday February 11, 2010 00:00

Pompey offered a down payment of £1.5m to settle debts of about £7m but HMRC wants £4m, BBC Sport understands.

So Portsmouth face a High Court winding-up hearing at 1130 GMT which could result in the club entering administration or being liquidated.

The club will offer £1.5m up front and the remaining £2.5m within 28 days.

Portsmouth manager Avram Grant, said: 'I ask the court to think not about the situation they see on the papers, football is not just papers. 'This business belongs to the fans, they love this club.' The court hearing on Wednesday moves Pompey a step closer to becoming the first top-flight club to go into administration.

The last-minute negotiations between Pompey's lawyers and HMRC came a week after businessman Balram Chainrai became the club's fourth owner this season.

An agreement has already been reached with the creditors other than HMRC who have been named in the case, which relates to non-payment of PAYE and VAT.

Pompey's lawyers had been attempting to persuade HMRC to allow the club to pay a substantial part of the money owed, with the rest of the debt being rescheduled.

Chainrai, a Hong Kong businessman, is looking to sell the club quickly and has no wish to see it go under as he has made substantial loans to Portsmouth. Chief executive Peter Storrie said in his programme notes ahead of Tuesday's Premier League 1-1 draw against Sunderland: 'I already have more than one interested party and am hopeful that we can finally find owners who have the best interests of everyone at the club at heart in order to move us forward.'

However, Brendon Bone, of supporters' group SOS Pompey, told BBC Sport: 'The talk about potential new buyers is all hearsay.

'We are hearing nothing but noise about selling on the club from the new owner, but if he does sell it on we hope he sells it to a football man.

'If all else fails at Portsmouth, Fratton Park can only be used for football, and we'd hope the council will take it over as a community club.

'HMRC want to get their money, and if they wind up the club, they won't get it. I think there are pretty good chances of an adjournment.

'We are on the brink of losing our Premier League status. But the most important thing is Portsmouth Football Club, not the Premier League.' Bottom-of-the-table Pompey have debts of £60m and are six points from safety.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.

However, it is thought unlikely that Gaydamak will take any action to push the club towards administration because to do so would reduce his chances of getting his money back.

In addition the Fratton Park team are being sued by former defender Sol Campbell for £1.7m for unpaid image rights. (BBC)