Portsmouth's tax bill forces debts up by further £18m

Just when it seemed the situation at Portsmouth could not get any more perilous, the club announced yesterday that their debts are now £138m, £18m more than was thought.

In April, administrator Andrew Andronikou announced debts of £120m as he published a long list of creditors. However, that figure has now risen by almost £20m, and is reported to have been revealed by Andronikou during a creditors' meeting at Fratton Park.

Portsmouth were relegated after being deducted nine points by the Premier League, but have since gone on to reach the FA Cup final. The financially stricken south coast club are hoping to be able to finalise a Company Voluntary Arrangement (CVA), which will allow them to come out of administration ahead of the new campaign in the Championship, and so avoid a further points sanction.

Creditors include the taxman as well as former owner Alexandre Gaydamak, and obtaining a CVA requires a 75 per cent approval, with Andronikou reported to be ready to offer a settlement between 20p and 25p in the pound.

It is understood the increase in Pompey's overall debt is due to charges from Her Majesty's Revenue & Customs, which is owed £17.1m in taxes and National Insurance contributions. Portsmouth's current owner, Balram Chainrai, has an outstanding £14.2m loan, which must be repaid in full, while Pompey's "football creditors" – including the Football League pension fund, other clubs as well as current and former players – are also set to have their debts covered.

While it may not seem a level playing field for the rest of the businesses and individuals still owed monies by Pompey, Premier League chief executive Richard Scudamore maintains such rules are necessary to protect the sport.

"If you want to keep your status in the pyramid of football, in the 92, you have to pay off those people around you, because you are forced to trade with them again," Scudamore said. "If a local business goes bust and someone does not pay, you can go and trade with someone else – there is always another plumber or another builder, somebody else to go and do business with.

"In football, you stay in the ladder, and the cost of staying in the ladder is you have to pay the clubs around you in the ladder. It is a football rule."

Sport
Seth Rollins cashes in his Money in the Bank contract to win the WWE World Heavyweight Championship
WWERollins win the WWE World Heavyweight title in one of the greatest WrestleMania's ever seen
Arts and Entertainment
Louis Theroux: By Reason of Insanity takes him behind the bars again
tvBy Reason of Insanity, TV review
Arts and Entertainment
Cassetteboy's latest video is called Emperor's New Clothes rap
videoThe political parody genius duo strike again with new video
Arts and Entertainment
tvPoldark, TV review
Have you tried new the Independent Digital Edition apps?
Caption competition
Caption competition
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?

Bleacher Report

Daily Quiz
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

Day In a Page

No postcode? No vote

Floating voters

How living on a houseboat meant I didn't officially 'exist'
Louis Theroux's affable Englishman routine begins to wear thin

By Reason of Insanity

Louis Theroux's affable Englishman routine begins to wear thin
Power dressing is back – but no shoulderpads!

Power dressing is back

But banish all thoughts of Eighties shoulderpads
Spanish stone-age cave paintings 'under threat' after being re-opened to the public

Spanish stone-age cave paintings in Altamira 'under threat'

Caves were re-opened to the public
'I was the bookies’ favourite to be first to leave the Cabinet'

Vince Cable interview

'I was the bookies’ favourite to be first to leave the Cabinet'
Election 2015: How many of the Government's coalition agreement promises have been kept?

Promises, promises

But how many coalition agreement pledges have been kept?
The Gaza fisherman who built his own reef - and was shot dead there by an Israeli gunboat

The death of a Gaza fisherman

He built his own reef, and was fatally shot there by an Israeli gunboat
Saudi Arabia's airstrikes in Yemen are fuelling the Gulf's fire

Saudi airstrikes are fuelling the Gulf's fire

Arab intervention in Yemen risks entrenching Sunni-Shia divide and handing a victory to Isis, says Patrick Cockburn
Zayn Malik's departure from One Direction shows the perils of fame in the age of social media

The only direction Zayn could go

We wince at the anguish of One Direction's fans, but Malik's departure shows the perils of fame in the age of social media
Young Magician of the Year 2015: Meet the schoolgirl from Newcastle who has her heart set on being the competition's first female winner

Spells like teen spirit

A 16-year-old from Newcastle has set her heart on being the first female to win Young Magician of the Year. Jonathan Owen meets her
Jonathan Anderson: If fashion is a cycle, this young man knows just how to ride it

If fashion is a cycle, this young man knows just how to ride it

British designer Jonathan Anderson is putting his stamp on venerable house Loewe
Number plates scheme could provide a licence to offend in the land of the free

Licence to offend in the land of the free

Cash-strapped states have hit on a way of making money out of drivers that may be in collision with the First Amendment, says Rupert Cornwell
From farm to fork: Meet the Cornish fishermen, vegetable-growers and butchers causing a stir in London's top restaurants

From farm to fork in Cornwall

One man is bringing together Cornwall's most accomplished growers, fishermen and butchers with London's best chefs to put the finest, freshest produce on the plates of some of the country’s best restaurants
Robert Parker interview: The world's top wine critic on tasting 10,000 bottles a year, absurd drinking notes and New World wannabes

Robert Parker interview

The world's top wine critic on tasting 10,000 bottles a year, absurd drinking notes and New World wannabes
Don't believe the stereotype - or should you?

Don't believe the stereotype - or should you?

We exaggerate regional traits and turn them into jokes - and those on the receiving end are in on it too, says DJ Taylor