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."

Have you tried new the Independent Digital Edition apps?
Arts and Entertainment
Larry David and Rosie Perez in ‘Fish in the Dark’
theatreReview: Had Fish in the Dark been penned by a civilian it would have barely got a reading, let alone £10m advance sales
News
Details of the self-cleaning coating were published last night in the journal Science
science
News
Approved Food sell products past their sell-by dates at discounted prices
i100
News
Life-changing: Simone de Beauvoir in 1947, two years before she wrote 'The Second Sex', credited as the starting point of second wave feminism
peopleHer seminal feminist polemic, The Second Sex, has been published in short-form to mark International Women's Day
News
i100
Caption competition
Caption competition
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

Homeless Veterans campaign: Donations hit record-breaking £1m target after £300,000 gift from Lloyds Bank

Homeless Veterans campaign

Donations hit record-breaking £1m target after huge gift from Lloyds Bank
Flight MH370 a year on: Lost without a trace – but the search goes on

Lost without a trace

But, a year on, the search continues for Flight MH370
Germany's spymasters left red-faced after thieves break into brand new secret service HQ and steal taps

Germany's spy HQ springs a leak

Thieves break into new €1.5bn complex... to steal taps
International Women's Day 2015: Celebrating the whirlwind wit of Simone de Beauvoir

Whirlwind wit of Simone de Beauvoir

Simone de Beauvoir's seminal feminist polemic, 'The Second Sex', has been published in short-form for International Women's Day
Mark Zuckerberg’s hiring policy might suit him – but it wouldn’t work for me

Mark Zuckerberg’s hiring policy might suit him – but it wouldn’t work for me

Why would I want to employ someone I’d be happy to have as my boss, asks Simon Kelner
Confessions of a planespotter: With three Britons under arrest in the UAE, the perils have never been more apparent

Confessions of a planespotter

With three Britons under arrest in the UAE, the perils have never been more apparent. Sam Masters explains the appeal
Russia's gulag museum 'makes no mention' of Stalin's atrocities

Russia's gulag museum

Ministry of Culture-run site 'makes no mention' of Stalin's atrocities
The big fresh food con: Alarming truth behind the chocolate muffin that won't decay

The big fresh food con

Joanna Blythman reveals the alarming truth behind the chocolate muffin that won't decay
Virginia Ironside was my landlady: What is it like to live with an agony aunt on call 24/7?

Virginia Ironside was my landlady

Tim Willis reveals what it's like to live with an agony aunt on call 24/7
Paris Fashion Week 2015: The wit and wisdom of Manish Arora's exercise in high camp

Paris Fashion Week 2015

The wit and wisdom of Manish Arora's exercise in high camp
8 best workout DVDs

8 best workout DVDs

If your 'New Year new you' regime hasn’t lasted beyond February, why not try working out from home?
Paul Scholes column: I don't believe Jonny Evans was spitting at Papiss Cissé. It was a reflex. But what the Newcastle striker did next was horrible

Paul Scholes column

I don't believe Evans was spitting at Cissé. It was a reflex. But what the Newcastle striker did next was horrible
Miguel Layun interview: From the Azteca to Vicarage Road with a million followers

From the Azteca to Vicarage Road with a million followers

Miguel Layun is a star in Mexico where he was criticised for leaving to join Watford. But he says he sees the bigger picture
Frank Warren column: Amir Khan ready to meet winner of Floyd Mayweather v Manny Pacquiao

Khan ready to meet winner of Mayweather v Pacquiao

The Bolton fighter is unlikely to take on Kell Brook with two superstar opponents on the horizon, says Frank Warren
War with Isis: Iraq's government fights to win back Tikrit from militants - but then what?

Baghdad fights to win back Tikrit from Isis – but then what?

Patrick Cockburn reports from Kirkuk on a conflict which sectarianism has made intractable