Portsmouth’s Debt Up To £119m

Ian

Ian began writing Twohundredpercent in May 2006. He lives in Brighton. He has also written for, amongst others, Pitch Invasion, FC Business Magazine, The Score, When Saturday Comes, Stand Against Modern Football and The Football Supporter. Ian was the first winner of the Socrates Award For Not Being Dead Yet at the 2010 NOPA awards for football bloggers.

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7 Responses

  1. Jack says:

    Excellent article, but the £14mn for the three players is actually money owed TO Pompey, not BY Pompey. Although the club borrowed against this money, the debt is due to be repaid by Spurs, Liverpool and Inter and not by Portsmouth. Admittedly that still leaves £105mn of other debts for the club to pay off but hey, take whatever positives you can.

  2. Jack says:

    Also, this link may be of interest: http://www.fansonline.net/portsmouth/article.php?id=1396

    It appears that Portsmouth owe £1mn to Spurs for Asmir Begovic, a player who has never played for Tottenham Hotspur at all.

  3. Martin says:

    Pompey’s debt will be enough to prevent HMRC having the necessary 25% to vote any dubious CVA down in the summer, inevitably followed by a lengthy court case about it.

    It all happened before at Chester last summer.

  4. The Horse says:

    I always thought that the reason Glen Johnson’s transfer fee was so exorbitant was that a lot of it was a write off on the money owed to Liverpool for the Peter Crouch deal. If that’s incorrect and Liverpool still owe Pompey however many million pounds as part of Glen Johnson’s transfer, and this wasn’t part of the original deal (i.e. payment in installments) then that just shows what a mess the English game is in, right the way up to the top.

  5. Rob says:

    Jack – It’s long been reported that Portsmouth owe Udinese money for Sulley Muntari, as for Johnson and Defoe, if Portsmouth were owed money, then Liverpool and Portsmouth would be under tranfer embargoes. Instead, there are probably further payment instalments outstanding, which is a different thing altogether.

    As for Defoe, consider this situatuon: Portsmouth manager Harry Redknapp buys Defoe for £6m from Spurs, then 12 months later buys him for Spurs for around £15m, including oustanding clauses and fees for Younes Kaboul and Pedro Mendes (both signed by Redknapp) being waived, only for Redknapp to sign back Younes Kaboul for Spurs a few weeks later at a discounted price because of outstanding fees. It’s as clear as crystal, and only in a situation involving the various Portsmouth boards and Harry Redknapp could one actually believe that there’s some truth in the matter.

  6. Jack says:

    I’ve looked at the CVA proposal (publicly available on the UHY Hacker Young website: http://www.uhy-uk.com/pages/posts/portsmouth-city-football-club-ltd–notice-of-creditors-meeting729.php).

    I’m using ‘owe’ as in ‘money is due’, not as in ‘money is overdue’. Maybe that’s not right, I don’t know, but to me money agreed on an instalment plan is still money owed. I’m not interested in a semantic debate in any case. With that in mind, we owe a total of around £17mn in transfer and loan fees, mostly future instalments, though payments seem to have been missed since February. We still owe Udinese 4 instalments on Muntari (two of which are overdue and appear to have interest accumulating) and Chelsea 3 instalments on Johnson (up-to-date at the moment). However, we are still owed (ie instalments are due to come in) around £14mn from the sales of Muntari, Defoe and Johnson – see http://www.sportingintelligence.com/2010/04/20/exclusive-extracts-portsmouth%E2%80%99s-debts-laid-bare-in-administrators-bombshell-report-210401/ for more, including some scans from the CVA proposal.

    It’s very probable that the Johnson and Defoe sales both contained a write-off of other fees as part of the reported price – especially given that the Pompey M.O. seems to have been ludicrously long-term instalment plans and we do not owe any money for players such as Crouch, Kaboul, Mendes etc. But as a combined total of the Muntari, Johnson and Defoe deals we are due to receive (or rather, the companies we borrowed from are due to receive) around £14mn still.

  7. ejh says:

    It’s as clear as crystal

    Not to me it isn’t. Could you try again?

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