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PST plans outlined

The press conference called by The PST today has outlined who the major money backers will be, has again stressed the importance of an inability to foot the 'football creditors' bill in full - by them or others - as well as called upon the council to, basically, 'show them the money!'

The local council have been very supportive of The PST's bid to gain control at Fratton but without a loan actually being given to enable to purchase of Fratton Park to go ahead this bid cannot really progress. A long-term business plan is not reliant on the input from the council although as far as 'cash flow' goes this would be needed to kick-start the bid.

Four high net worth individuals have deposited six figure sums to the bid, among these are lifelong Pompey fans Iain McInnes, who would become chairman should The PST takeover prove successful.

Portpin's charge over Fratton Park has seen them offered 2.75m to take Fratton Park from them in return for Chainrai wiping out his 17.5m debt. As yet no response has been given despite this made a couple of months ago, an acknowledgment has been made though. I would not think Chainrai would accept this?

An 850,000 amount has been offered as far as the CVA goes. Basically the offered made by Portpin with their CVA has been matched.

As far as the 'football creditors' go, football clubs that are owed money by Pompey will be paid off in full over time with all pay owed to non-playing staff to be paid in full over short-period of time.

The major sticking point is again the players as secured creditors! They are owed significant amounts of money, as we know but these cannot be met in league one, arguably most levels I guess! 2m compensation in compensation to players owed money has been offered, which would of course be significantly less than they are owed but MORE than local businesses owed money will get when they deserve more.

No more money is possible than this and the long-term survival depends on that being enough, although add-ons will be given if club returns to, as unlikely as it seems, to the premier league within a certain number of years.

Balram Chainrai has been called upon to 'work with and not against the bid' and also agree to a compromise to enable to the club to live on.

As far as money raised goes 1m is in escrow account, with pledges totalling 3m coming in from 'local people', I assume that this is not just 'local people' alone and is fans in general! The PST is applying for a 'bridging loan' of 1.45m from the council to be repaid the financial year after next, I think it was the financial year after next.

Then of course there are the remaining parachute payments to be made that will also boost the funds available to foot specific bills.

Plenty of 'scepticism' has been shown towards The PST's bid, and the ability of the fans to actually pull off this takeover bid, but it is now hoped that with more details given and some 'high net investors' revealed more belief will be shown and those tempted to add their backing, but as yet not doing this, will now do so.

It was said that some 300m comes into the city each year due to Portsmouth Football Club, whilst you have to appreciate the local tax payers views, it is surely in the councils best interests for a short-term loan to be given to help the club live on?

Without a Portsmouth Football Club the impact on the city of Portsmouth would be HUGE, in a negative way!

Not much else can now be done, hats off to The PST for the time and effort put in - acceptance of certain terms offered, and the agreement of help from those that need to give it, will make or break this bid now, and this will be far from easy but also not impossible...


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The Journalist

Writer: pompeyrug Mail feedback, articles or suggestions

Date:Thursday August 2 2012

Time: 12:10PM

Your Comments (oldest first)

Change to most recent first
I like this. It's hard to take all this in at the moment BUT at last some answers! So we need a loan from the council, Chanrai to be decent and understanding and our beloved, 'football creditors' to take a bit of a loss on the chin. Easy.
Report Abuse
02/08/2012 12:26:00

simples isnt it Et tu...
altho i think we all realise, as decent a proposal as the PST has put forward, it will be a big ask for people to accept this and i cannot see that BC will tbh with you...
Report Abuse
02/08/2012 12:32:00

You're probably right but I hope you're wrong, PR.
Report Abuse
02/08/2012 12:38:00

great borrow more money, this time from the council, oh on favourable (whose) terms as well please. Chinny take a big hit and we will take the parachute payments that you are hanging on for. Dream on.
Report Abuse
02/08/2012 12:51:00

Well the details are out in the open and people will make their own conclusions. What we don't have is time on our side. Lots to mull over and as a supporter/businessman who no longer lives in the City I'm trying to understand it with all hats on.
Report Abuse
02/08/2012 15:02:00

We have to remember that Balram Chanrai has surfaced again just because he wants his money back, and who wouldn't! So how on earth do we expect him to lose it, or some of it?! I think that PST have done a magnificent job to come up with a solution.
Pompey Malta
Report Abuse
02/08/2012 16:35:00

There seems to be a lot of ''old' debt being carried over along with a required 'new' debt but little explanation as to how all this is going to be repaid. Saying that some will be repaid in the short term and some 'over time' is a bit meaningless. If income isn't generated to cover this we'll be heading for another admin.
Report Abuse
02/08/2012 17:18:00

Thing is Malta... I certainly wouldn't begrudge the bloke trying getting his money back....if. The difficulty I have is convincing myself that he actually put some 'REAL' money in, and it wasn't just a sleight of hand between two offshore companies whose books can't be examined.
Report Abuse
02/08/2012 17:24:00

Personally i don't see anything from either bidder except heartache, frustration and Administration again in the future. Neither are our answer. I wish I could be positive, well i am! I'm positive that in the end we will go to the wall with either in time. Theres no hope on the field, no infrastructure off the field, no money to re-ignite us on the horizon, just HOW are we to get out of this as it stands?? Please someone tell me...Then i'll be super positive
Report Abuse
03/08/2012 07:03:00

'Money to re-ignite us' has been the problem all along. What's so bad about starting with a small amount of money and living within our means; you know, only spending what we can afford and if that's not enough then it's the fans fault for not being ar$ed to attend matches or buy shirts etc. Then we float downwards until we find a division our fans can support us in. I don't want anybody's flash cash, cos the bar stewards always let us down or nick from somewhere to inflate their abilities or their egos. And we end up bu&&ered as usual. Infrastructure comes with sustainability and a debt free modus operandi. Ignite, my ar$e!
Report Abuse
03/08/2012 07:53:00

Well said Et_tu, totally agree. Run the club within its means and try to attract fans back to the park. Im sure it can be acheived but will take time and effort plus patience and understanding from us fans. Its the last bit that seems lacking.
Report Abuse
03/08/2012 08:56:00

I am away on holiday at the moment and I should be at home covering this story for you. I did promise you all though that the PST would come up with the goods and they have delivered.
Report Abuse
03/08/2012 09:34:00

Yep... got to agree with Et_tu. It's been the re-ignition money that's been the problem, and not only for Pompey I may add. Time for us to cut the cloth blah blah. No more hot money to blow us to kingdom come on a promise....
Report Abuse
03/08/2012 09:41:00

Nowhere near enough detail- some blokes with a six figure some - 100,000 or 999,999 . Start with debt and increase it . This is not " the goods " Dave in finance terms which if I'm honest I know better than the off side rule it doesn't stack up. I know Rugster doesn't agree with me but the only way I see this going is either liquidation and a load of wannabe's get their plan "b" or Chan takes over and whilst he's trying to rid himself of carried debt liability the trust searches elsewhere for funding. If you read what is said this is debt on debt to guarantee debt - and no detail apart from very financially vague statements. I am sadly in agreement with Penton and quite frankly astounded tobe in agreement with jimsmithswig. For me Yesterday was an exercise in publicity and not a lot more - the plan "b" ers are probably smiling. Now I'm struggling to care.
Report Abuse
03/08/2012 14:56:00

2.75m to wipe out a 17.5m debt doesn't seem like a bad start, with the new stadium owners actually LIKING Pompey . . . .?
Report Abuse
04/08/2012 10:07:00


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