Relegation fight hit by court ruling

Relegation fight hit by court ruling

Published Jan. 19, 2010 7:31 p.m. ET

Portsmouth's fight against relegation from the Premier League looks even tougher after Britain's High Court turned down its application to dismiss a liquidation order against it.

The court said Tuesday it will now hear the winding up petition from the government's revenue and customs department "in due course."

The hearing had already been scheduled for Feb. 10 and, if that petition succeeds, the financially troubled club would become the first topflight club to go into administration since the Premier League was founded in 1992.

Aside from the implications for its owners and finances, that would lead to an automatic nine-point deduction.

Portsmouth is already bottom of the Premier League with just 14 points. It is four points behind Bolton and five behind Hull, which occupies the third relegation place.

The club is already banned by the Premier League from signing players during the January transfer window because of the money it owes other clubs from previous deals.

Portsmouth has written to the Premier League to threaten legal action unless it is allowed to sign players on loan.

The club also disputes last week's decision by the governing body to divert 7 million pounds ($11.4 million) of television revenue payments to those clubs owed money related to player transfers.

Portsmouth says it has paid off some of those debts.

The law firm representing the club, Neumans LLP, said in a statement that Portsmouth could appeal against Tuesday's verdict and that any appeal had a "real prospect of success."

The club has already lost Jamie O'Hara, who returned to Tottenham after Portsmouth was unable to reregister the midfielder when his loan ran out last week.

Portsmouth has also failed to pay its players on time on three occasions this season but appealed against the winding up order because it disputes the amount of tax the revenue and customs department says it is owed, placing it on a lengthy list of creditors.

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