Portsmouths debts are even worse than previously feared

By Paul Kelso Published: 7:35PM GMT 19 Feb 2010

In the dark: gloom surrounds Fratton Park after news that the troubled club cannot sell players outside the transfer window Photo: EPA

It is understood that the total tax arrears are £18 million, 50 per cent higher than had been believed. The figures are included in the "statement of affairs" delivered to the High Court this week as part of the clubs defence against a winding-up order from Her Majestys Revenue and Customs.

The document sets out the full scale of Portsmouths plight. HMRCs petition only refers to £12 million of unpaid VAT and PAYE, but there are further arrears referred to in the statement.

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The Premier League, meanwhile, has refused Portsmouths request to sell players for the rest of the season, despite Fifa unusually granting an exception to the transfer-window system.

The decision denies the club a potential lifeline and increases their chances of going into administration, which would attract a nine-point penalty.

Portsmouths request to offload players to reduce their wage bill outside the traditional transfer windows betrays their desperation.

The club argued that they should be granted dispensation to sell players to prevent them being wound up. While Fifa was apparently persuaded, the Premier League board was not, arguing that Portsmouths financial position was yet to fully unwind and that administration was a viable alternative to liquidation.

Had Portsmouths request been granted it would have fatally undermined the intellectual and philosophical basis of the League, as well as the rule-book. The Premier League imposes no limits on club spending, but the flip side is that clubs cannot be bailed out if they get into trouble. Making a special case of Portsmouth would have far-reaching consequences.

The clubs best chance of avoiding administration is finding another new owner.

Endeavour Plan, an investment fund run by New Zealand businessman Victor Cattermole linked with a takeover, has been investigated by financial regulators.