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pompey court case


Ken Tone

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what does this ACTUALLY mean??

 

If it is correct it basically means that their debts and outgoings exceed their income and assets. If so there is no way out that makes any sort of economic sense.

 

Seems about right to me. However football never does makes economic sense. It didn't make any sense for Chainrai to lend £17 million to a club with £60 million debts and land assets worth only about £15million, but he did it. And now he is left holding the baby in effect.

 

Pay up at least most of another £7 million or the club closes down and you lose your £17 million.

 

Either there is some very odd motive behind his actions or he is too stupid to be worth all that money in the first place!

 

K.

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If it is correct it basically means that their debts and outgoings exceed their income and assets. If so there is no way out that makes any sort of economic sense.

 

One thing mentioned on the Porstmouth News live feed thingy, is that even f relegated, Pompey would have c.£25m in parachute payments to come to them. Even if they had to sell players to reduce the wage bill and possibly even face tumbling down the leagues, with that amount of money coming in, guarenteed, I'd be surprised if they were actually wound up, and rather just told that that money would be earmarked for HMRC or whoever.

 

Now, admittedly, I don't really have a clue how it all works, but it kinda makes sense.

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One thing mentioned on the Porstmouth News live feed thingy, is that even f relegated, Pompey would have c.£25m in parachute payments to come to them. Even if they had to sell players to reduce the wage bill and possibly even face tumbling down the leagues, with that amount of money coming in, guarenteed, I'd be surprised if they were actually wound up, and rather just told that that money would be earmarked for HMRC or whoever.

 

Now, admittedly, I don't really have a clue how it all works, but it kinda makes sense.

 

But a) they owe £60 million, much more than £25million, and b) their players are overpaid so no one will want to buy them because they won't want to pay those wages ..and the players won't leave voluntarily because they know they won't be paid that much anywhere else.

 

Does b) sound familiar? But they have far more such players that we did and far more excessively paid.

 

So they will have great difficulty even matching income and outgoings, even with parachute payments , and no chance of paying off debt.

 

Not crowing over this. Much as I dislike all things pompey this is all the fault of greedy, and maybe even dishonest, people with no real love for the club. The fans are the victims.

 

K.

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I'm a lawyer, not an insolvency lawyer, but speaking with insolvency colleagues this looks like bad **** for Pompey. They are essentially going to have to prove to the Court by next Wednesday that they are able to pay their debts. They've been given a 7 day reprieve and no more. Normally you get 28 days but the Court obviously considers this to be a basket case. In other words they need a buyer in 7 days otherwise it really does look as if they will go bust. If they did go bust next week and we lost to them at the weekend, I assume that we would then be given a bye into the FACup QF.

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It would be great if we beat them but it would also be great if we lost and then went through anyway...lol.

 

I would suggest that if we lost, then it would be whoever Pompey were drawn against in the QF that got the bye, not us, although I could be wrong.

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I do hope Pompey aren't relying on their share of the gate receipts on Saturday to help them out??!?! (Even though in reality the monies wouldn't scratch the surface of their debt.)

 

I can't decide whether it would be a good thing or not. On the one hand, I'd hate to see us have a hand in their survival but on the other it would be good to constantly remind them that, without us, they'd have folded. And I do mean constantly remind...!

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