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Pompey Set To Go Into Administration
It's been confirmed that Portsmouth Football Club are seeking to go into administration.
The club now face a 10-point deduction and it'll be the second time in as many years the club has ended up in the hands of the administrators.
A statement on the club's website says "Portsmouth Football Club today made an application to the High Court to go into administration.
The club will not enter administration until the court endorses the application and appoints an administrator.
The High Court hearing is due to take place on Friday, February 17."
Pompey face a winding-up hearing next week over an unpaid tax bill of at least £1.6m.
The club's now been able to pay their players and staff for January.
Peter Kubik, of the club's financial advisors UHY Hacker Young, told Press Association Sport: "They are in the process of seeking an administration order - an application to court seeking administration is due to go in any day.
"The club's bank accounts have been frozen due to the winding up hearing and they are finding it very difficult to trade. Once the administration order is in place the bank accounts will be made accessible again.
"We are aware that administration carries an automatic 10-point deduction by the Football League."
Pompey were plunged into another financial crisis after their parent company, Convers Sports Initiatives (CSI), went into administration in November. UHY Hacker Young are the administrators for CSI.
The tax bill is for between £1.2million and £900,000 but Kubik said there were many other outstanding bills to pay. Among these, the club needs to pay their electricity supplier in order to avoid being cut off.
"There are lots of bills they need to pay," added Kubik.
In February 2010 Portsmouth became the first Premier League club to enter administration and were deducted nine points, condemning them to relegation.
A 10-point deduction from the Football League would put Pompey on 25 points, outside the relegation places on goal difference alone.
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