Pompey battle for survival moves to High Court

Portsmouth’s battle for survival in the Premier League switched from the pitch to the High Court on Wednesday as the cash-strapped club attempted to stave off a move by the UK tax authorities to have it placed in administration.

Having failed to reach an out-of-court accord with Her Majesty’s Revenue and Customs (HMRC) over an outstanding Value Added Tax bill of 7.5 million pounds, Portsmouth’s lawyers went to court to seek an adjournment of a hearing on a winding up petition presented by the tax body.

If they failed, Portsmouth faced becoming the first Premier League club to be placed in administration, a move that would lead to a nine-point penalty being imposed and effectively condemn Pompey to relegation from the top flight.

That is looking very likely in any case. Portsmouth, who have lost 17 of their 25 matches this season, are currently bottom of the table and six points adrift of Bolton, the club occupying the last survival spot.

Talks on a negotiated settlement with HMRC broke down on Tuesday but there was a glimmer of hope for the club’s long-suffering fans as their side snatched a 96th-minute equaliser in a 1-1 draw with Sunderland.

Aruna Dindane headed in the last-gasp equaliser after Darren Bent had given Sunderland an early lead from a penalty.

Afterwards, Portsmouth manager Avram Grant appealed to the judge considering the club’s tax case to take the passion of the Fratton Park faithful into account in his decision.

“It is not a normal business, it is not like an apartment you buy without feelings,” the former Chelsea and Israel manager said.

“The club is 112 years old, it belongs to 250,000 people. It needs to stay alive. That is more important than football.”

Portsmouth’s total of four wins in the league matches the number of owners the club have had this season.

Hong Kong-based businessman Balram Chainrai took a controlling interest in the financially-stricken club last week after exercising provisions linked to a 17-million-pound loan his company made to the former owner, from Ali Al-Faraj, a Saudi Arabian national based in the British Virgin Islands.

Chainrai is hoping to stabilise the club before selling it on to new owners in order to recoup his investment.

Portsmouth’s financial difficulties have been underlined by the club’s failure to pay staff and players on time on four occasions so far this season and former owner Alexandre Gaydamak claims he is still owned 28 million pounds.

The club’s precarious financial position first became evident towards the end of 2008 and has resulted in the dismantling of the squad which won the FA Cup that year.

Star striker Jermain Defoe and midfielder Lasanna Diarra were sold in January 2009, Defoe’s England team-mates Peter Crouch and Glen Johnson followed at the end of last season and Bosnia goalkeeper Asmir Begovic and key defender Younes Kaboul were offloaded last month.

Cardiff City, the side Portsmouth beat in the 2008 Cup final, were also facing a winding-up order from HMRC on Wednesday. Cardiff’s financial plight is so bad the club cannot afford to pay to have its badly scarred pitch restored.