When a club has more owners than league wins, it’s probably fair to say that they are in a bad way. Years of spending above their means have left Porstmouth in a bad way. They owe money to almost everyone; HMRC, former owners, other clubs, their own players. Today they will ask for a 28 day adjournement in the hope that new owner Balram Chainrai can can either find enough funds to keep them afloat, or to vacate his uncomfortable seat for the next in a seemingly endless line of deluded owners.
Here is an insight into what they are relying on;
“HMRC want to get their money, and if they wind up the club, they won’t get it. I think there are pretty good chances of an adjournment.”
In all likelihood, unless a Manchester City style owner takes pity on them, they will end up in administration that will guarantee them at least one relegation and possible more.
They are not the only club who stand on that pecipice; West Ham have debts of over £100m and are also threatened by relegation. Even if they win that battle (which they should), controlling the absurd spending, let alone reconciling their debt will be far tougher.
Spending should always be linked to revenue – gate receipts, merchandising, sponsorship and prize money. But teaching business 101 to Premier League owners seems rather perverse. Is there any other area of business where people with no practical experience or ability to run large, visible and culturally important companies are permitted to do so?
