Bristol City confident over recovering Pompey cash
BRISTOL City are confident they will recoup all the money they are owed by stricken Championship rivals Portsmouth.
The troubled club, who are £4 million in debt, yesterday entered administration for the second time in two years after their application was approved by a High Court judge and face being penalised at least ten points, possibly 20
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Portsmouth's plight casts doubt over their ability to pay the five-figure cash amount they still owe City following the transfer of 23-year-old goalkeeper Stephen Henderson from Ashton Gate to Fratton Park in July last year.
The Evening Post understands the deal was worth £150,000 in total, most of which was paid up front at the time, with the remaining balance taking the form of performance-related payments.
Portsmouth paid the first of these before Christmas and, providing Henderson remains in the team, will be due to make another one before the end of the season. In all, City are still owed £10,000.
Pompey owe close to £2 million in unpaid taxes to the Inland Revenue and a similar amount to business creditors, including Bristol City, Wolverhampton Wanderers, West Bromwich Albion, the Football League and Portsmouth City Council.
City chairman Colin Sexstone, pictured, said: "We will get our money eventually, from one source or another.
"We have looked at the regulations and they allow us to be a football creditor, which means we can get our money back in full.
"All we can do at the moment is wait for the administrators to sort things out and decide who should be paid and when."
Perhaps of greater significance to City is the automatic ten-point deduction levied against any Football League club entering administration.
Currently 18th in the Championship table with 35 points, Pompey will drop to 21st, out of the relegation zone on goal difference only.
As the table stands today, that will leave them six points adrift of City, who will rise one place to 20th.
Portsmouth were issued with a winding-up petition by HM Revenue and Customs last month, freezing the club's bank accounts.
The administration order enables them to access those accounts and continue trading while searching for new owners.
Should they fail to come out of compulsory voluntary administration within a certain time-frame, they will face a further points deduction. But this would not be invoked until next season at the earliest.







9 Comments
by manchestergas
Saturday, February 18 2012, 10:48PM
“wellrounded - what are you on about? I think City & Rovers fans don't mind a bit of banter but your comments is just plain daft!!
rednemesis1 - most of gas debt is also internal debt actually”
by marksy1
Saturday, February 18 2012, 8:21PM
“by huntye
Did you go to school with townar$e ?”
by RedNemesis1
Saturday, February 18 2012, 2:54PM
“Huntye
Yes,SL playing with his new toy which he's going to take home with him to BS3 at a colossal financial cost to the bluefewer. The joke's on you, buddy.....
So Portsmouth owe us £10,000 in the final instalment of Henderson. This is hardly a story.
It is indeed sad to see Portsmouth fan's suffer so much- they are not behind the reckless and pitiful business model that is Portsmouth Football Club and deserve better. However,there are a number of local suppliers, workers and the like who will have been hit for the second time whilst the lost tax revenue which hasn't been paid over the past 3 years could build several schools. Should they be allowed carry on whilst dumping their debt for the second time in 2 years ? In any other business( apart from banking) there would be no chance.
BCFC has indeed got a lot of debt created and spent by the very benefactor who is also owed it! It is not external debt so very different to Rovers or Portsmouth or Rangers or West Ham or etc etc.”
by harryreg_uk
Saturday, February 18 2012, 1:27PM
“RE: huntye "the red few" - compared to the whopping 5k - good job you don't look stupid trying to take the mick!”
by FromMendip
Saturday, February 18 2012, 12:16PM
“Portsmouth are lucky to be docked just ten points. This is the second time in three seasons they've gone into administration and the third in the last 13 years.
Football's finances are a mess. Clubs overspend like turkeys spending all their overdraft before Christmas.
Unlike normal companies that often fold completely after administration, football clubs almost always survive with someone taking over the reins in the wake of creditors scrabbling around for tiny pieces of the crumbs that the administrator can dole out from the previous company.
A football club, certainly a League club, is thought of by many as a vital social asset for a town or city and must not be allowed to fold. Because of this directors and officers of clubs all too often act in reckless and cavalier fashion. Dozens of English and Wales football clubs have entered administration in the past quarter of a century and only a tiny handful have disappeared without trace, and they've all been small clubs.
Thirty years ago we experienced a club with no money to carry on its business at Bristol City and all locals with any interest in the subject know how that was resolved. It was and remains most unsatisfactory.
Both Bristol clubs have worrying amounts of debt at present. City would be in real trouble without a benefactor to keep them going but should a football club really rely on such financial gifts? Debt is a natural part of any company but it has to be manageable and in football far too often it's not.
The real owners of football clubs are its fans. They are for life whereas most players, managers, directors and owners are transient.
When clubs encounter financial difficulties it's the fans who suffer the most heartache.
For that reason I hope that Portsmouth survive - there is no doubt that they will - but I abhor both the financial and moral bankruptcy of the football industry.”
by rocketbob
Saturday, February 18 2012, 11:20AM
“at various times when thoughts have turned to City and Rovers sharing a stadium. Neither wanted to be responsible for sending the other into bankruptcy and upsetting half of Bristol.”
by huntye
Saturday, February 18 2012, 9:27AM
“the red few must be near to administration aswell by now as the owner is playing with his new toy in north bristol ?”
by wellrounded
Saturday, February 18 2012, 8:44AM
“Interesting that one club could force the administration of another club for unpaid debts in order to force the deduction of points in a relegation fight. 10k drop in the ocean but interesting had it been much more.”
by RedNemesis
Saturday, February 18 2012, 7:58AM
“Lets be honest, City will be happy to lose 10k on the proviso that Pompey lose 10 points! Money well spent I say ...”