• Pompey claim other clubs wanted their share of TV money
• Advance from Premier League prevented club from bankruptcy

Portsmouth’s Premier League rivals pushed for the club to be liquidated in mid-season in order to share the television money they were due, the high court heard yesterday.

Portsmouth are in court to defend themselves against the taxman’s challenge to the company voluntary arrangement proposed by the administrator, Andrew Andronikou. And shortly after beginning his evidence Richard Sheldon, Portsmouth’s counsel in yesterday’s action, claimed: “The other [Premier League] clubs wanted to let Portsmouth go to the wall and to divide the television monies amongst themselves.”

The FA Cup finalists were rescued from bankruptcy only when the Premier League advanced millions of pounds to Pompey so they could meet otherwise unaffordable short-term liabilities. And Sheldon said it was only an intervention from the League’s chief executive, Richard Scudamore, that prevented Portsmouth from going bust. In the event, all clubs received a payment of approximately £2m from the League’s central pot, equal to the sum advanced to Pompey in February.

A further sum is believed to have been paid up front to Pompey once their relegation was confirmed. Sheldon’s extraordinary allegation underlines the fact that the cut-throat nature of competition between Premier League clubs extends beyond the pitch and into the boardrooms. But all clubs are united in their opposition to the taxman’s central argument in court yesterday, which is that the football-creditors rule is unjust and should be abolished. Under the football-creditors rule, all players and clubs receive 100p in the pound on any debt they are owed, whereas ordinary creditors receive a fraction of their dues.

Football’s justification for the rule is that without it their competitions would be unbalanced, since otherwise-solvent clubs could be forced to the wall due to another’s financial collapse, potentially causing havoc to fixture lists throughout the pyramid. Greg Mitchell, counsel for HMRC, set out the taxman’s challenge to the proposed CVA, under which the taxman would lose 80% of what it is owed by the relegated club.

When asked by Mr Justice Mann what alternative HMRC would propose, Mitchell responded that it would not include differential treatment of football creditors and ordinary creditors.

PortsmouthMatt Scottguardian.co.uk

• Creditors accept deal of minimum 20p in the pound
• Over 80% of creditors believed to have voted in favour of deal

Portsmouth will be allowed to move out of administration after its creditors voted to accept a Company Voluntary Agreement.

The deal, which was formally agreed at a meeting at Fratton Park today, will see those owed money by the Championship club paid a minimum of 20p in the pound.

However there is still a 28-day cooling off period for objections to be raised. The formal agreement of creditors must now be accepted in a court of law.

According to reports, a total of 81.3% of creditors voted in favour of the deal.

The hearing revealed that although HMRC’s claim went up from £17m to £37m, the club’s administrators managed to reduce their claim to £24m, meaning they were able to get their deal through despite the taxman’s objections.

Andrew Andronikou, the administrator, told the meeting at the Victory Lounge: “As you can see it’s been duly approved.”

Portsmouth became the first Premier League team to enter administration when they did so on 26 February this year. That led to a nine-point penalty and the club were relegated at the end of the season.

Nigel Tresidder, chairman of the Pompey Supporters’ Club central branch, attended the meeting and said he was buoyed by the outcome but concerned about the likelihood of HM Revenue and Customs appealing.

“It’s excellent news other than HMRC have 28 days to appeal against it,” he said. “I think the people in charge of the club are confident of winning any appeal but it’s time the uncertainty came to an end.”

PortsmouthBusinessguardian.co.uk