The taxman today rejected Portsmouth FC’s offer regarding their tax arrears (a mere £7m), leaving the football (soccer) club yet closer to either administration (chapter 11 protection effectively) or liquidation as they face a High Court winding up order over the debts.
Nick (e.g. here) and myself on here have previously written on the perilous state of Portsmouth FC, already in the hands of about its fifteenth owner this season alone.
Portsmouth is avoiding administration as long as it possibly can because by FA regulations, clubs entering administration are docked 10 points – this would effectively relegate the club to the Championship as they are already six points away from the last safe spot in the Premiership. This is the usual nightmare situation facing clubs in a relegation/promotion set-up like European football – and West Ham’s new owners (another team in relegation trouble) have recently commented on the armageddon that relegation would mean for the club.
Incidentally, West Ham’s owners say their situation would be “worse than Newcastle” if they went down. Newcastle, out of interest, are currently sitting pretty at the top of the Championship, well on course for an immediately return to the Premiership…