Portsmouth FC have been forced to go into administration with estimated debts of around £55M – unbelievable.
This is the very first Premier League club that has entered administration since the Premier League was formed back in 1992.
And surely this will be a stark warning to those other clubs who have huge debts, to get their financial houses in order, and quickly too.
It seems like Portsmouth have started the process of administration and that will be completed tomorrow in the high court.
The administration (bankruptcy in the US) gives the club a chance to restructure their debts so they can survive as a club.
Portsmouth will suffer a 9 point penalty and will therefore have their points total reduced to just 7 points and they will be relegated for sure, since they will be 17 points behind 4th bottom Hull City with only 12 games to play
We were told this week that 18 of the 20 clubs in the Premier League are in serious debt, and the total debt of those 18 clubs is an amazing £3.5B.
And it appears the bigger clubs are those that have the most debt, including Manchester United, Chelsea and Liverpool.
Newcastle fans seem to have been fairly happy that the Newcastle finances seem to be under better control than in the past, although we are still losing around £500K a week, which puts pressure on the Tyneside club being promoted in May.
These debts that the PL clubs are carrying just cannot continue, and somebody needs to come in and tell them to sort themselves out – and quickly.
The financial management of most of these clubs seems inept – at best.
But the big losers in all of this are the faithful Portsmouth fans, who have been badly let down by those who have been running the club over the last few years.
Shame on those who have brought this demise onto a proud club.