Portsmouth want their dispute with the Premier League over their transfer embargo to be settled by an arbitration tribunal if the two sides cannot reach a satisfactory agreement.
Reports yesterday suggested that Portsmouth were to threaten legal action in a “strongly worded letter” to the League. However, The Times understands that the club are confident that an independent arbitration body would rule in their favour without the necessity for a potentially damaging court case against the League.
Portsmouth claim that all their immediate football debts have been paid off, after £5 million of the £7 million they are entitled to from the League’s television contract was diverted to creditor clubs, and that they have rescheduled debts to certain foreign sides. Therefore, they should now be given the remaining £2 million and have the embargo lifted in time for Avram Grant, the manager, to strengthen the squad.
“We will be writing a strongly worded letter to the League asking them to send us the £2 million remaining from our scheduled TV payment and to lift the transfer embargo,” Mark Jacob, the executive director, said.
However, the Premier League stands by its decisions. “We need documentation at the Premier League which is as watertight and as strong as the original contract on which the players were signed,” Richard Scudamore, the League’s chief executive, said. “The minute we have absolute proof that any contractual amendments they’ve made with other clubs are as robust as the original contract that was signed, then obviously that money gets released.”
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To have the embargo lifted, Portsmouth must show that they can service known future liabilities such as those to Watford, who are due the next instalment of fees for Tommy Smith and Mike Williamson at the end of this month, before they are allowed to take on new debt in the form of transfer or loan fees.
“At the point when we as a Premier League determine there are no outstanding liabilities — absolutely nailed down, absolutely clear, absolutely concise — then of course the transfer ban will be lifted, but at the moment it is still in place,” Scudamore said.
Portsmouth also hope that the High Court will order Revenue & Customs to withdraw a winding-up petition today. The club dispute the amount of tax liability, but if the verdict goes against them, the petition will be heard on February 10 with the possibility that they could become the first Premier League club to be wound up.
Scudamore denied that the Premier League could have done more to ensure Portsmouth’s financial stability. “There’s only a certain point at which we can intervene,” he said.
“We changed our rules in September and now, when we see the financials [reports] that come in from clubs at the end of March, we will be able to take a stronger role to come in and make sure they are sustainable. Given the amount of central income that is generated by the Premier League, it would be down to absolutely rank bad management if a club itself was actually to go into administration.”