Pompey on brink of administration
The Fratton Park outfit are dealt another blow in an already turbulent season
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Tuesday, 19, Jan 2010 07:08
By Michael Younger.
Premier League strugglers Portsmouth have been dealt another blow and look a step closer to administration after the High Court announced it had dismissed the club's bid to block a winding-up order from HMRC.
HMRC had originally applied for the the petition against Portsmouth on December 23rd but the club argued the VAT part of its tax bill was £7.5m too high.
However, they failed to convince Mr Justice Newey of this in a High Court hearing on Tuesday, and the hearing is expected to go ahead on February 10th. The outcome could send Portsmouth a step closer to being the first Premier League club to drop into administration, and therefore incur a ten-point penalty.
A spokesperson for the Judicial Communications Office said: "At the High Court today Mr Justice Newey dismissed an application from Portsmouth City (sic) Football Club Limited for a winding up petition to be struck out. A further hearing to consider HMRC's winding up petition will take place in due course."
HMRC said it welcomed the High Court's decision: "We now expect that, subject to any appeal, the petition will in due course be heard by the High Court in the usual way.
If it goes against them, it would push Portsmouth a step closer to administration.
However, a statement from Portsmouth said the judge "considered any appeal to the court of appeal would have a real chance of success".
If it were to succeed, the club said, it would "result in the judge's ruling being reversed and HMRC's petition being struck out, without the petition proceeding to the final hearing".
Pompey, who currently sit at the foot of the table, have found themselves in financial difficulties this season - failing to pay its players on time on three separate occasions along with failing to pay clubs to which they owed transfer fees.
The result was that last week the Premier League diverted £7m in television revenue payments to other clubs and placed a 96-day transfer embargo on the Fratton Park outfit.
Portsmouth, who have seven days in which to lodge an appeal, have yet to reveal if or when they plan to challenge the verdict.
The club said in a statement released in conjunction with their legal representatives, Neumans LLP: "We would like to once again thank supporters for their continued support and patience.
"The owner, the board and associates would like to assure fans that they are working hard towards a positive solution and are confident that this matter will be resolved in our favour."