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| Version 1 | Version 2 |
|---|---|
| Portsmouth tax appeal dismissed | Portsmouth tax appeal dismissed |
| (about 2 hours later) | |
| Portsmouth FC has failed to block a winding-up petition from HM Revenue & Customs at the High Court. | |
| HMRC had applied for the petition against Portsmouth on 23 December but the club argued the VAT part of its tax bill was too high. | |
| The High Court judge dismissed Portsmouth's claim and the hearing is expected to go ahead on 10 February. | |
| But he said the issues involved in the case were "difficult" and granted the club permission to appeal his ruling. | |
| Court of Appeal | |
| "At the High Court today Mr Justice Newey dismissed an application from Portsmouth City Football Club Limited for a winding-up petition to be struck out," a spokesperson for the Judicial Communications Office said. | "At the High Court today Mr Justice Newey dismissed an application from Portsmouth City Football Club Limited for a winding-up petition to be struck out," a spokesperson for the Judicial Communications Office said. |
| HMRC said it welcomed the High Court's decision. | HMRC said it welcomed the High Court's decision. |
| "We now expect that, subject to any appeal, the petition will in due course be heard by the High Court in the usual way," a spokesperson said. | "We now expect that, subject to any appeal, the petition will in due course be heard by the High Court in the usual way," a spokesperson said. |
| If it goes against them, it would push Portsmouth a step closer to administration. | |
| However, a statement from Portsmouth said the judge "considered any appeal to the Court of Appeal would have a 'real chance of success'". | |
| If it were to succeed, the club said, "this would result in the judge's ruling being reversed and HMRC's petition being struck out, without the petition proceeding to the final hearing". | |
| Portsmouth now has seven days to lodge at appeal. | |
| Transfer ban | Transfer ban |
| Portsmouth has found itself in financial difficulties this season - failing to pay its players on time on three separate occasions. | Portsmouth has found itself in financial difficulties this season - failing to pay its players on time on three separate occasions. |
| Last week, the Premier League diverted £7m in television revenue payments to other clubs which were still owed transfer fees by Pompey. | Last week, the Premier League diverted £7m in television revenue payments to other clubs which were still owed transfer fees by Pompey. |
| However, Portsmouth executive director Mark Jacob said the club had directed the Premier League to pay only £5m, and so it was in fact owed £2m. | However, Portsmouth executive director Mark Jacob said the club had directed the Premier League to pay only £5m, and so it was in fact owed £2m. |
| The Premier League has also banned the club from operating in the transfer market. | The Premier League has also banned the club from operating in the transfer market. |
| The Fratton Park club won the FA Cup in 2008, but since the departure of manager Harry Redknapp, its fortunes on the pitch have declined. | The Fratton Park club won the FA Cup in 2008, but since the departure of manager Harry Redknapp, its fortunes on the pitch have declined. |
| The club is currently bottom of the Premier League. | The club is currently bottom of the Premier League. |
| If the club were to go into administration, it would face an automatic nine-point deduction. | If the club were to go into administration, it would face an automatic nine-point deduction. |