Portsmouth’s administrators have today revealed the relegated Premier League club now have debts of £135M.
Of course in February Portsmouth, who have always been a well supported club on the south coast of England, became the first Premier League club to enter bankruptcy with debts at that time said to be between £60M-£70M.
In April, the Portsmouth club, who have amazingly, but deservedly reached the FA Cup Final, were said to be £120M in debt.
The news today is that a debt repayment plan has been approved for the club, and that will allow it to emerge from administration (bankruptcy for those in the US) and the debt is now £135M.
The club will pay at least 20 pence in the pound of its debts to creditors over a five year period appears to be the agreement reached.
Some clubs are still owed over £17M in transfer fees by Portsmouth, and in addition current and former players are also owed almost £5M in bonuses, wages and image rights payments.
What a terrible way this club has been run financially over these last several years – that this happens – and we feel sorry for the fans who seem to have been completely betrayed by those in charge.
It’s been clear for some time that those running Premier League clubs are hardly financial or business wizards, but it looks like the chickens are coming home to roost at some clubs, with Hull City possibly the next one to fold.
Our concern for Newcastle is that it was was revealed last weekend the Newcastle United club may owe Mike Ashley as much as £136M.
The loan is said to interest free, and presumably Mike doesn’t want the money anytime soon, at least we hope he doesn’t, but that’s still a lot of debt to have on the books.
We assume some scheme has already been agreed, to have the Tyneside club pay off that loan over a number of years, unless Ashley sells the club, which is hardly likely right now.
In the interests of transparency and improved communications with the fans, we have to hope that owner Mike Ashley or Managing Director Derek Llambias will shortly reveal the status of the club’s debts.
The Newcastle United club are said to be issuing a statement before the end of this week, according to the Newcastle Journal, so hopefully the amount of debt and how it will be repaid will be clarified in that statement.