Portsmouth's creditors have approved a Company Voluntary Arrangement (CVA) proposal, allowing the club to exit administration by paying back a reduced portion of its debts. The decision came after a tense five-hour meeting at Fratton Park, where creditors debated the club's mismanagement and financial collapse.
The club, which faces Chelsea in the FA Cup final on Saturday, has debts of £135 million. Administrator Andrew Andronikou received a strong mandate to draft the CVA, which will see some creditors receive as little as 20% of what they are owed. The deal has been criticised as a 'shabby compromise' that leaves innocent parties out of pocket.
Questions remain over the club's ownership history, including the roles of the Gaydamak family, Sulaiman Al-Fahim, Ali Al-Faraj, and current owner Balram Chainrai. Andronikou has promised to investigate these matters, with potential involvement from the Department for Business, Innovation and Skills.
Despite the financial turmoil, Portsmouth's players continue to prepare for the FA Cup final. However, the club's situation raises broader questions about football governance, including whether a bankrupt club should be allowed to win the competition and how such debts can accumulate in the world's richest league.
