Administrator warns about Pompey’s finances
120578-959_BARNSLEY_POMPEY_SR_18/2/12 Action from Pompey vs Barnsley at Oakwell. Pompey administrator Trevor Birch at Oakwell. Picture:Steve Reid (120578-959)
POMPEY’S administrator Trevor Birch says the situation at Fratton Park is ‘more serious’ than expected.
Mr Birch, a partner at PKF Accountants & business advisers and joint administrator of Portsmouth Football Club, said the club could run out of money in the next couple of months if drastic decisions are not taken.
These include today’s announcement that several staff have lost their jobs, including chief executive David Lampitt.
Mr Birch today made the following statement: ‘We have had no choice but to take the difficult decision to make a number of redundancies across all levels and departments within Portsmouth Football Club.
‘Additionally, we are asking certain employees to defer wages on an ongoing basis and are asking several members of staff to move from a full-time to a part-time role.
‘These measures are painful for everyone involved with the club, but they are essential for Portsmouth’s survival, which is our main objective.
‘They are in no way a reflection of the performance of the club’s hard-working staff, who have remained loyal and supportive throughout this difficult time.
‘Our initial analysis of the club’s financial position has revealed that the situation is more serious than many people had expected.
‘We have been brought in to try to rescue a business with significant financial problems. To put it bluntly, Portsmouth Football Club has a Premier League cost base but only Championship income. This is not a sustainable situation and one that needs to be addressed urgently if the club is to continue to exist.
‘As things stand, there is a serious risk that the club could run out of cash within the next couple of months. I recognise that this is not the news that anyone wants to hear but burying our heads in the sand will not help anyone.
‘Today’s redundancies will make a difference to the club’s financial position but there are sure to be further challenges ahead of us.
‘Portsmouth’s survival depends on us being able to find a buyer for the club before the money runs out.
‘This is a great club with a proud history. We will continue to do all we can to secure a long-term future for Portsmouth Football Club. I hope that with the support of the staff, players, supporters and the wider community we can achieve this aim.
‘Portsmouth needs the support of as many people as possible over the next few weeks and months. There are six home games coming up in the next five weeks so let’s make every single one a sell out – starting with Leeds on Saturday.
‘With this in mind, we have already started speaking to the supporters’ groups and are meeting with fans tonight.’
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Comments
There are 112 comments to this article
Page 1 of 8
Farehamite
Thursday, February 23, 2012 at 05:51 PMI don't understand how AA can keep 200K when he was administrator for CSI not PFC. He seems like an out and out crook. Saying he would have deferred it if he was new administrator reeks of throwing his toys out his pram.
TaskForce
Thursday, February 23, 2012 at 10:07 AMCOYR. yes you maybe right regarding your posting about going into div 1 and rebuilding.
Amesbury Blu
Thursday, February 23, 2012 at 10:01 AMpost 109 Pack the park ....as if
beno121
Thursday, February 23, 2012 at 09:54 AMI'd take relegation. Like the saint fan said early. If we do relegated we will find out who are loyalty players are Joel ward and pearcy. Built a team round them next season. Let's gets relegated try and win league 1 pack fratton park once again. And win the johny cup. Let's start from fresh I'd support Pompey in league 1
COYR
Thursday, February 23, 2012 at 09:36 AMWhy not release a few of the big earners?? It might be a good thing for you to get relegated this year, you will soon find out who the loyal (big earners) players at the club are as we did with the likes of davis and lallana who stayed on reduced wages and are still with us. With your parachute payments im sure you could still build a decent squad to challenge for promotion and im sure many saints fans would agree with me but our experience of the 1st division was actually very enjoyable.. No stupid kick off times for sky, No international breaks, some interesting venues! reasonable prices, not to mention the st johnstones trophy (No its not the fa cup, but as you lot are aware, there,s nothing like a trip to wembey and winning) On top being a 1st division club might help attract a more suitable owner with the club at heart. Going in to league 1 is a great place to build from just look at Manchester city and that was before the money! but also the likes of Norwich Leeds etc and im positive we wouldnt be where we are if we hadnt gone down. Good Luck for the future and finding a new owner, Just not one with as much money as ours please!!
Amesbury Blu
Thursday, February 23, 2012 at 09:30 AMComment removed by moderator
harswa
Thursday, February 23, 2012 at 09:06 AMWhilst I know that the players have to be paid, eventually, how about the administrator, at least, asking them all to consider a voluntary percentage pay cut. This would show how much they care about the club, would act as some support for all the non playing staff, and would be some good publicity for these players who may very soon be seeking another club for employment. It would also help to galvanise the whole club behind the cause.
pompeyboyindubai
Thursday, February 23, 2012 at 09:01 AMIs'nt it about time the players such as TBH, Kitson and Lawrence agreed to also defer their wages to help out??? seems grossly unfair that the general staff are suffering yet the players keep raking in the money each week.
westendsaint
Thursday, February 23, 2012 at 09:00 AMLe Critique (at6l) Your pathetic comments epitomise all I said about the morons from both camps. You obviously have a very sad life - perhaps you need help. If you cannot do or say anything positive to support this old club then go away. Pompey(or any other club) do not need - or deserve - morons like you
trencher
Thursday, February 23, 2012 at 08:45 AM@ 101 , i wonder how "wealthy" and genuine these individules are, its the walking the walk and not talking the talk we need to see very soon indeed.
TaskForce
Thursday, February 23, 2012 at 08:33 AMWell, sorry to say that being made redundant happens on a daily basis and companies will offload staff to keep a business going be it football or any other type of business.
Appy pompeii
Thursday, February 23, 2012 at 08:18 AMFrom the Guardian-The administrator at Portsmouth has made 33 staff redundant, including the chief executive David Lampitt, and asked the players to defer their wages, in an effort to keep the financially stricken club in business. Staff at all levels, from Lampitt and his two fellow directors to coaches at the club's academy, were laid off by Trevor Birch, of the accountant PKF, which described the measures as necessary "if the club is to continue to exist". The employees were distressed and several were in tears after they were told in meetings that their jobs had been cut with immediate effect. Portsmouth fell into administration last week for the second time in two years, owing £2m in unpaid tax, after the owner who had been bankrolling the club, Vladimir Antonov, was arrested for alleged bank fraud in Lithuania. Birch said the savings he is making, which also include asking some staff to work part-time instead of full-time, amount to approximately £400,000 a month. Describing the cuts as a "difficult decision" and "painful for everyone involved with the club", Birch said they were "essential" to ensure the club survives, even just to the end of this season. "Our initial analysis of the club's financial position has revealed that the situation is more serious than many people had expected," he said. "As things stand, there is a serious risk that the club could run out of cash within the next couple of months." Redundancies were expected and are routine when any business collapses into insolvency, and directors are often laid off when it becomes run by an administrator. However at Fratton Park there remains shock at its fall so soon after Antonov took over and promised to bankroll new spending. That led to what Birch described as Portsmouth having "a Premier League cost base but only Championship income". Birch, however, is understood to be furious that £800,000 of the club's money held by the club's previous administrator, Andrew Andronikou of Hacker Young, had not been released to him. Andronikou said £600,000 has now been sent back to Portsmouth, on the day the redundancies were made. "The balance [£200,000] has been retained to cover our fees, lawyers and counsel fees," Andronikou said, adding he would have been prepared to defer those fees had he been appointed administrator until the club was sold. Birch said of the challenge ahead: "Portsmouth's survival depends on us being able to find a buyer for the club before the money runs out." On Tuesday evening he held a meeting with the Pompey Supporters Trust, which has been organising and fund-raising, in partnership with some wealthy individuals, to harness a genuine effort to take over the club itself. Birch said of his contact with the supporters trust: "I am very happy to have entered into a very constructive dialogue with them." Lampitt, the former FA head of regulation who saw Portsmouth into the Antonov takeover, said he respected the decision to make him and the other staff redundant. "The priority is for the club to survive," he said.
EastMidsBlue
Thursday, February 23, 2012 at 08:16 AMSo the FL will work with Portsmouth FC and the Administrators in finding a new owner for the club. Can I just say that, please don't bother. I think that the people of Portsmouth have had too many of your fit and proper people taking charge of their football club and we would like to gamble and have someone a bit more "dodgy". ie someone who's not passed the FPPT. We would like to thank the FL for all their efforts in finding us all of the previous fit and proper people they really were top-notch. We at Fratton Park would like to wish the FL all the best in their future quests for finding more and more fit and proper people, but thanks but no thanks. Give them to someone else...please.
TaskForce
Thursday, February 23, 2012 at 08:06 AMQuestion for any Trust member. If you have wealthy people who would put money into a fans buyout then why not ask these wealthy people to buy the club and be its directors ?
TaskForce
Thursday, February 23, 2012 at 07:57 AMMy wife said she heard on the radio last night that if Portsmouth went into liquidation the court would seize Fratton Park and Balram Chanrai would get almost nothing.
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