Portsmouth will become the first Premier League club to go into
financial administration on Friday, after four undisclosed buyers
failed to prove they had the funds to buy the cash-strapped soccer
club.
Andrew Andronikou of UHY Hacker Young will serve as the
administrator after a Thursday afternoon deadline passed. Financial
administration is a form of bankruptcy protection.
"We made a conscious decision to put it into administration
tomorrow morning," Andronikou told The Associated Press.
Andronikou will issue a detailed statement Friday outlining
how the club will be restructured to prevent it going into
liquidation. The club is in last place in the world's richest
soccer league, and will be docked nine points for entering
financial administration.
"I feel very sad, very angry," Portsmouth manager Avram Grant
said.
The 112-year-old club has already had four owners this
season, with debts reportedly reaching $105.5 million. Portsmouth
reached the predicament by spending heavily on player transfers and
salaries to win the 2008 FA Cup, its first major title since 1950.
The debts at Fratton Park continued to mount, and the club
was in serious trouble in August when Sacha Gaydamak sold it to
Dubai businessman Sulaiman Al-Fahim.
However, Al-Fahim's ownership lasted less than six weeks
after failing to refinance the club and pay the players' wages on
time. A subsequent takeover by Saudi businessman Ali Al-Faraj was
portrayed as being necessary to rescue the club, but it still
struggled to pay off debts.
Portsmouth was banned from buying players on permanent deals
during the January transfer window, and any funds raised from
player sales were taken by the Premier League to pass on to clubs
owed money.
Hong Kong businessman Balram Chainrai took over the club this
month as a short-term arrangement to protect his investment after
becoming frustrated that several deadlines were missed to repay his
loans to the club.
The Premier League has been working with Portsmouth for six
months to prevent a potentially embarrassing closure.
