Portsmouth FC, previously owned by UAE tycoon Sulaiman Al Fahim and Saudi Arabian businessman Ali Al Faraj, is likely to go into administration this week, a club spokesman admitted on Wednesday.
Businessman Balram Chainrai, the fifth owner of the club during a turbulent past 12 months, has served notice that the club will go into administration unless new owners can be found by end of the week.
Chainrai and fellow investors from his Portpin investment vehicle are in London to continue talks with representatives of four different groups interested in buying the club, but have admitted that it is now unlikely a deal can be done before a winding-up hearing, due to be heard in the High Court on Monday.
The news comes two days after former owner Sulaiman Al Fahim resigned as chairman.
Al Fahim sent the club a resignation letter on Monday in which he wrote that he had not been made aware of the club’s financial situation despite repeated requests.
The letter from Al Fahim stated that he was “ignored” by board members as he tried to ascertain the true state of the club’s finances.
Club spokesman Phil Hall said in a statement on the club’s official website: “There is now only a short window of opportunity for buyers to come in with a credible offer. We have to be realistic and having the club wound up is not an option as far as we are concerned.
“They are the victims of circumstance, having injected funds in the form of a short-term loan to the Al Faraj Group, who subsequently invested the money in the club.
“The partners have put GBP17m of their own money into the club and have a responsibility to ensure Portsmouth Football Club survives.
“Administration would mean the club re-emerging as a healthy financial entity. The club would then become an attractive proposition for a potential buyer who could invest new funds in rebuilding the club’s future.
“We would like to ask the fans, the staff and management of Portsmouth Football Club for their support and patience should this step be taken, as they believe it is the only route left open to them.
“The serving of this notice means the winding-up order is automatically suspended. It means the club is safe, it can fulfil its fixtures and as far as is possible it is business as usual.
“Mr Chainrai has agreed to continue funding the club going forward until its long-term future is decided. He will also pay for the administration process out of his own pocket.”
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