England Premier League Media

Portsmouth manager Avram Grant has been warned over his future conduct and fined 1,000 over an on-field rant at referee Kevin Friend last month.

Former Chelsea boss Grant stormed on to the Fratton Park pitch to confront Friend at half-time in Pompey’s 1-1 draw with Sunderland on 9 February.

He was dismissed to the stands, and on Thursday Grant admitted a Football Association charge of improper conduct.

The 54-year-old was also issued with with a further 4,000 suspended fine.

A statement from the FA said: “The regulatory commission took into account his admission of the charge and previous good disciplinary record.

“The suspended fine will be activated in the event of a similar breach of FA rules.”

Pompey striker Aruna Dindane scored a stoppage-time equaliser to earn his side a point after Darren Bent had given the Wearsiders a 12th-minute lead from the penalty spot.

Portsmouth will return to the High Court on 15 March after their case against Her Majesty’s Revenue and Customs was adjourned on Tuesday.

HMRC challenged the club going into voluntary administration and also questioned the validity of Andronikou’s appointment as administrator.

It was claimed that Andronikou may have links with owner Balram Chainrai, compromising his independence.

Mr Justice Norris ordered a ruling into Andronikou’s appointment in two weeks.

The new twist in the rocky fortunes of the club came after a challenge by the taxman to the administration and the judge ruled the “shadow over the appointment should be removed”.

Gregory Mitchell QC, representing HM Revenue and Customs (HMRC), asked the court: “Have these administrators been validly appointed?

“The question of validity is a fundamental issue and that has to be determined one way or the other as quickly as possible.”

“Our concern is that there should be a full and independent investigation of the position and the transactions between the club and Mr Chainrai.

“We say that if there is no proper evidence of funds having been provided to the administrators to meet the club’s financial needs, then there is a real danger the administration will fail to achieve the proper purpose.”

Simon Barker QC, representing Portsmouth, said Portpin, Chainrai’s company, was providing 15m which was more than enough to keep Portsmouth afloat until the end of the season.

Mr Barker said: “There is no reason to impugn the conduct of these administrators at all. There is no reason the court should have any doubts about their appointment and independence.

“The administrators want the air cleared in a way which allows them to get on with their task.”

Mr Justice Norris, in a ruling, said: “A shadow has been cast over the existing appointment of the administrators and it is clear that shadow should be removed as quickly and cheaply as possible.”

He also directed that Portsmouth should provide evidence of “each and every sum” which Portpin lent to the club and also “full particulars” of any money paid to Portpin and Mr Chainrai by the club.

Andronikou will also meet the Premier League on Thursday to discuss Pompey’s proposed nine-point penalty for entering administration.

The deduction would leave the Hampshire club on 10 points – 14 from safety and virtual certainties for relegation to the Championship.

On Thursday, Andronikou will attend a meeting of Premier League chairmen to explore whether clubs would consider allowing Portsmouth to sell players and then take them back on loan for the remainder of the season.

There will also be a discussion of the possibility of television revenue being forwarded early to the club, who have had four owners this season and on Friday became the first Premier League club to enter administration.

A Pompey spokesman said before the case: “We don’t want to pre-empt anything or pre-judge what will happen, but hopefully the Premier League and our fellow Premier League clubs will be as sympathetic as possible to our situation.

“The Premier League have been incredibly understanding and [club owner] Balram Chainrai would like to place on record his gratitude to chief executive Richard Scudamore, chairman Sir David Richards, company secretary and head of football administration Jane Purdon, general secretary Mike Foster and director of finance and administration Javed Khan.”

Meanwhile, Culture Secretary Ben Bradshaw said Portsmouth’s financial woes should act as a “wake-up call” to the sport’s authorities.

The game’s governing body had some “very tough questions” to answer about football finance, the MP told the House of Commons.

He urged the Football Association to adopt the changes to the way the game is run that were recommended by Lord Burns in 2005.

New Zealand businessman Victor Cattermole claims his consortium “are still interested” in buying Portsmouth.

Cattermole’s Endeavour Plan group was one of four interested parties unable to agree a deal last week as the debt-laden club went into administration.

But Cattermole said talks had been reopened with administrator Andrew Andronikou on Monday, and claimed the chance of a deal “is quite good”.

“I really don’t think the situation is as bad as people think,” he added.

Pompey, who have had four owners this season, became the first Premier League in history to enter administration on Friday.

The club claimed last week that a sale was not possible as none of the parties had provided the club’s chief executive Peter Storrie and current owner Balram Chainrai with proof that funds were in place.

However, Cattermole contradicted this, saying: “We provided evidence of an offer for a bank facility of 200m euros (181m) last Tuesday to Peter Storrie.

“That was obviously not disclosed to any of the media.

“We also wrote to them advising that we were strongly opposed to administration but they had a path they were on and it didn’t matter what we said, that wasn’t going to change,” he added.

The Premier League seem set to deduct the Hampshire club nine points as a result of administration on Tuesday – which would leave them 14 points from safety and virtual certainties for relegation to the Championship.

And Cattermole admitted this would be a consideration for his consortium.

“We still have to carry out due diligence and see what is owed, what is expected to be paid for it and what the value’s going to be once the whole issue of relegation and the nine-point issue is sorted out,” he said.

“Obviously if the club gets relegated then a lot of the income in the next seasons is compromised. The club has to be cheaper because it’s been devalued.

“We’ll just look at it as a business that’s effectively a going concern and we’ll make a decision on value based on what we see and what we can negotiate.”

After seeing his team win 2-1 at Burnley on Saturday, Pompey manager Avram Grant protested that the points deduction was unjust.

“Football should be decided on the pitch not in the courts, not in the Premier League offices,” the Israeli said.

Andronikou, who has estimated that Pompey’s debts will “bottom at around 78m”, said the club aims to challenge the penalty.

“The assumption that there is an automatic deduction of points has never been tested before but we will do our very best to avoid a deduction,” he told BBC Radio 5 live on Sunday.

“Our solicitors believe there may be a slight opportunity but I don’t want to say anything more because that prejudices my position in achieving it.

“I would say everyone has taken for granted that there will be a deduction of nine points.”

Goalkeeper David James has hinted that he may be prepared to take a wage cut to extend his career at Portsmouth.

Pompey went into administration on Friday, with the administrator expected to try to sell players and cut salaries to reduce the club’s debt.

And veteran James seems keen to explore the latter option in his case.

“I am happy to stay here and if I need to sit down and talk to the administrator, then that is what I will do,” said the 39-year-old.

“I want to play games. If things have to be done in order for me to stay in the team, then so be it.

“I can’t speak for the other players, only for me. The importance of Portsmouth outweighs the importance of any individual.”

However, the former Liverpool stopper will also be aware that safeguarding his future at the south-coast club could boost his chances of being England’s number one at this summer’s World Cup.

After lurching from one crisis to another this season, Portsmouth finally became the first Premier League in history to enter administration on Friday.

Premier League rules dictate that Avram Grant’s team will be deducted nine points as a result, making them virtual certainties for relegation.

But administrator Andrew Andronikou, who estimated that Pompey’s debts will “bottom at around 78m”, has said the club aims to challenge this penalty.

“The assumption that there is an automatic deduction of points has never been tested before but we will do our very best to avoid a deduction,” he told BBC Radio 5 live.

“Our solicitors believe there may be a slight opportunity but I don’t want to say anything more because that prejudices my position in achieving it.

“I would say everyone has taken for granted that there will be a deduction of nine points.”

Despite the club’s financial quagmire, James is maintaining a positive outlook and claims the mood at Fratton Park is not entirely downbeat.

“There is a sigh of relief in some respects that we’ve gone into administration as opposed to liquidation,” he said.

“It keeps the club in the community, keeps the players here, and despite the fact the money issues are still there, it gives us a chance to keep playing football.

“As for me, I want to stay at Portsmouth until the end of the season and be part of the most incredible recovery ever.”

If the Premier League enforces the points deduction, James’s team, already rooted to the foot of the table, would be on 10 points – 14 points away from safety.

But a defiant James believes his team could bridge this gap after seeing them win 2-1 at Burnley thanks to goals from Frederic Piquionne and Hassan Yebda.

“Someone said we needed 10 wins out of 12. Well now we have one of them,” said the England international.

Meanwhile, Portsmouth’s last owner prior to administration Balram Chainrai has ruled out becoming the owner of the club for a second time.

Chainrai reluctantly became the fourth owner of the season at Fratton Park, taking 90% of the club shares after the previous owner Ali Al Faraj defaulted on loan payments due to him.

Reports suggested he could buy the club back, however he said in a statement: “It is not true I’m looking to buy Portsmouth in the long-term.

“I’m looking for new owners who have integrity to sustain the club and take it forward.”

Portsmouth put their off-field turmoil to one side to see off strugglers Burnley and end the worst week in the club’s history with a deserved victory.

The day after entering administration, a free-flowing Portsmouth took the lead through Frederic Piquionne’s tap-in.

Martin Paterson levelled with a fine hooked lob over keeper David James.

But despite Brian Jensen’s penalty save from Jamie O’Hara, Hassan Yebda scored a second spot-kick to win it for Pompey before Ricardo Rocha’s late red card.

It was just reward for Portsmouth on the back of a spirited and ambitious approach that belied their stricken position off the field.

For Burnley, however, it was another devastating defeat as their recent run extended to just one win in 16 matches and they remain mired in the relegation zone.

On this showing, it is hard to see how either side can avoid having to play Championship football next season – Portsmouth by virtue of the nine-point penalty that administration brings and the 14 points adrift of safety that it will leave them, and Burnley on account of their desperate defence and goal-shy attack.

Brian Laws’ men will, at least, be buoyed by Paterson’s performance on his first league start since September, but in truth the Clarets could have lost by more in the face of Pompey’s ambition.

Only a linesman’s flag denied the visitors the opener, Danny Webber flicking Nadir Belhadj’s cross in at the near post from an offside position.

And the same player should have done better when he was set free in the box, only to drag his tame shot wide.

But there was no mistake on 25 minutes, the impressive O’Hara laying in Webber, whose cross to the far post was poked in by Piquionne.

Portsmouth were only inches away from a second before half-time, too, but O’Hara’s fine curling effort crashed off the bar and Danny Fox then bravely denied Webber’s follow-up shot.

Before that, though, Burnley had equalised. Steven Fletcher flicked on Jensen’s long clearance and Paterson – who had earlier troubled the Pompey backline with a jinking run and shot that James saved – fired a brilliant lob over the keeper and under the bar.

The hosts were only ever threatening in spells in a remarkably open game.

And with Burnley’s Clark Carlisle enduring a match to forget, it appeared written that Portsmouth would somehow find a winner to secure only a second away win in 27 matches.

The defender was guilty of fouling Piquionne in the box, only for Jensen to spare his blushes with a fine save from O’Hara’s placed spot-kick.

But Carlisle then went and conceded a second penalty on 75 minutes, this time hauling John Utaka down in the box, and Yebda made no mistake with a pin-point finish.

O’Hara and Utaka both forced further good saves from Jensen, while at the other end Fletcher missed a glorious chance at 1-1 when, unmarked, he headed Paterson’s centre over from six yards out.

There was to be no denying Portsmouth victory, though, despite Rocha’s late dismissal for two yellow cards.

The three points will ensure the visiting fans travel back to the south coast with pride intact, even if their club is not on as firm a footing.

But Burnley must hope for a turnaround in form soon if they are to avoid relegation back into the second tier of football.

Burnley manager Brian Laws:
“We have shot ourselves in the foot today. We gave two really poor penalties away and the second one in particular was inexplicable.

“To give Portsmouth the three points is devastating. The captain (Carlisle) has to hold his hands up and take the blame for that. He’s absolutely devastated but there’s no hiding place, we all know what happened.

“Any game you lose is a setback, especially at home. We didn’t get anything out of today’s game, so we’ll just have to get something out of our next game.”

Portsmouth boss Avram Grant:
Points deduction unjust – Grant

Portsmouth manager Avram Grant claims his team’s imminent nine-point deduction is unjust.

The Premier League will penalise bottom club Portsmouth for going into administration, and the result means their relegation is a near-certainty.

After seeing his side win 2-1 at Burnley, Grant thinks Pompey’s fate should be decided solely on the field.

“Football should be decided on the pitch not in the courts, not in the Premier League offices,” he said.

The Hampshire club’s season of crisis, which has seen four changes of ownership, took another grim turn on Friday when Pompey became the first Premier League club in history to enter administration.

Premier League rules dictate that clubs entering administration are automatically deducted nine points.

With Grant’s side already precariously positioned at the foot of the table on 19 points – five points adrift of safety – that would almost certainly result in the south coast side’s drop to the Championship.

Former Chelsea boss Grant feels strongly that the Pompey faithful should not be made to suffer for the club’s money problems.

“The fans should not be victims in this scenario,” he said. “Of course, we should not be docked nine points.

“All my life I have been fighting for justice and in the interests of fair play, we need football to be decided on the field.

“Maybe someone, somewhere, will think about the fans, who have done nothing wrong.”

The Israeli, though, was buoyed by his team’s resilience on Saturday as Hassan Yebda’s penalty earned them all three points at relegation rivals Burnley on Saturday.

“We are showing character. In spite of everything, we have won and I am very, very proud of the players,” he said.

“In this situation it would be very easy to be in a negative mood and lay down and die, but we’re not doing that.

“I’m very proud to be part of the Portsmouth family.”

A Frederic Piquionne tap-in had given Portsmouth a 25th-minute lead, only for Martin Paterson to level for the Clarets six minutes later.

However, after Burnley goalkeeper had saved a Jamie O’Hara penalty, Yebda made no mistake from the spot when Pompey won a second penalty, giving his only their second away win in the league in the last 16 months.

It may prove to be futile at the end of season, but Grant vowed that he would give his all for the club until the end.

“I cannot promise anything, other than as long as I am here then I will fight for the city and the club because it’s the right thing to do,” he said.

Portsmouth’s administrator Andrew Andronikou has vowed to save the debt-ridden club and said all its finances will be “reviewed and scrutinised”.

Pompey became the first Premier League club in history to enter administration after racking up debts of “60-70m”.

Andronikou says he faces some difficult decisions over the next few weeks but has told fans not to give up hope.

“I promise we will save your club and take you forward,” he said. “I will be cutting to the bone, I can assure you.”

Portsmouth went into administration on Friday, and Andronikou, an insolvency practitioner from UHY Hacker Young, now has the job of assessing the extent of the damage, along with colleague Peter Kubik.

Andronikou said: “We are looking to immediately address the significant monthly tax burden of the club by implementing a swift cost rationalisation programme.

“Every aspect of the club’s overheads will be reviewed and scrutinised. Our aim is to maximise all revenues and to eradicate all unnecessary costs.

“Restructuring starts today. There will be significant cost cuts at all levels… we have a huge job to deal with.”

Some sections of Portsmouth’s supporters have attributed much of the blame for the club’s demise to chief executive Peter Storrie’s dealings in the transfer market.

However, Storrie, who will tender his resignation when the south coast club is sold, has vigorously defended his eight-year tenure.

“I’m absolutely certain the administrator will go through the numbers and show everybody the figures, and I hope he does,” he said.

“I would encourage him to show every single person the numbers of what we got for players and what they cost us, because I’m sick and tired of these ridiculous comments.

“People forget that, yes, you get all this income in, but what about the cost of all these players to buy them?” added Storrie.

“They don’t come for free, they come with transfer fees, they come with sell-ons when you sell them on.”

Andronikou believes it will be necessary to sell “one or two” of Storrie’s acquisitions, although the club would need special dispensation from Fifa and the Premier League to do this outside of a transfer window period.

The Premier League has already rejected one attempt by Pompey to sell players now that the window has been shut since the end of January.

“We are asking the Premier League for their assistance, this is a very new area for them,” said Andronikou.

“There will be a meeting with the Premier League next Thursday where I will make a presentation.

“I need to generate working capital in the next two months. As part of that process we will have to sell one or two players… but I am not looking to sell players on a fire-sale basis.”

Andronikou was hopeful Pompey could receive their television parachute payments – a small share of TV revenue in the region of 20m that the Premier League pays to relegated teams over two years – before their likely drop to the Championship.

Under Premier League rules, clubs that go into administration are deducted nine points.

If, as anticipated, the League enforce this rule, Pompey would have a total of seven points – a massive 17 points off safety.

However, Andronikou believes the deduction is not necessarily inevitable and hinted he may ask the league to withhold the punishment.

“I understand everyone is taking it for granted we are going to be docked the nine points. It is something I need to broach with the Premier League and then look to start talking about parachute payments,” he said.

“I need that to be confirmed during the course of the week. We need to go through the formal process. I think it’s early days to be talking about deducting the nine points.

“It is the rule at the moment but we are the first Premier League club to have gone into administration so let’s just test the rule,” he added.

Andronikou also said that manager Avram Grant had promised him he would stay until the end of the season.

“I’ve spoken to him briefly,” said the administrator. “He has given his full support to stay till the end of the season.

“It would be very naive of me to start looking for a new manager.”

Asked about the decision of chief executive Peter Storrie to tender his resignation, Andronikou added: “His position has become untenable. I understand he is in a very difficult position but my main priority is the football club.

“From what I’ve seen, I have every confidence Pompey will fulfil its fixture list and will be playing football next year.”

He also said he will continue discussions with parties interested in investing in or taking over the club.

However, he will demand “proof of funds up front” from any would-be buyers and insists they must satisfy the Premier League’s ‘fit and proper person’ requirement.

The Football Association, meanwhile, has expressed its sympathy to Pompey fans over their club’s plight.

“We regret to see any football club enter administration and we would express our sympathy, in particular, to the supporters of Portsmouth Football Club,” an FA spokesperson said.

“We have been regularly informed over the status of Portsmouth by our colleagues at the Premier League. The FA will continue to support the Premier League during this process.”

Portsmouth, with debts of about 60m, have become the first Premier League club to enter administration.

The club will be docked nine points as a result and face almost certain relegation to the Championship.

Pompey, who have had four owners this season, were due to face a winding-up order on 1 March but decided to go into administration in a bid to survive.

It was reported that four parties were considering a takeover but no deal was completed before Thursday’s deadline.

BBC Sport understands the three directors of the Premier League board will meet next week to agree when the nine points should formally be taken off.

In a statement, the League said its board will meet Portsmouth’s administrators at the earliest opportunity to “receive their views on the [club's]financial status and set out the conditions for it to fulfil its commitments for the remainder of the season”.

Meanwhile, administrator Andrew Andronikou, of insolvency experts UHY Hacker Young, now has the responsibility of beginning the process of cutting costs at the club to try to keep it as a viable entity.

Portsmouth chief executive Peter Storrie revealed he would tender his resignation when the administrators had sold the club and said it was “an extremely sad day for everyone connected with the club.”

He added: “By this course of action owner Balram Chainrai has kept the club alive and given someone an exceptional opportunity to take this great club on with fresh investment to steer Portsmouth in a positive direction.

“It is my intention to work with the administrator to help sell the business and I hope that will be quick as there is already interest in acquiring the club.”

Milan Mandaric, chairman of Portsmouth from 1998 to 2006 and now Leicester chief, told BBC Midlands Late Kick Off: “It’s really sad. It’s not right. I just hope for the sake of the club, and the sporting community, and football in that city, they sort things out.

“And I think they eventually will. That club will never die. That club has a lion’s heart. The fans love their club, they will always be there. Unfortunately they don’t deserve these kinds of difficulties.”

Friday’s announcement follows weeks of speculation over the survival of the cash-strapped south coast side and is a big blow to the reputation of the Premier League, widely admired throughout the world.

Portsmouth, who employ nearly 600 people directly or indirectly, have been labelled “completely dysfunctional” by accountant Nick O’Reilly of Vantis. He also warned to expect a “rocky” time ahead.

“The next few months are crucial to the business,” he added. “People will lose jobs, but hopefully the club will come out the other side.”

As well as struggling at the bottom of the Premier League, Portsmouth have suffered a catalogue of ongoing financial problems.

Players have been paid late on four occasions this season, while the club is also involved in a separate dispute with former owner Sacha Gaydamak over whether they have missed a deadline in paying a 9m chunk of the 28m they owe him.

The Premier League also withheld 2m of transfer payments and diverted a 7m slice of TV revenue to Chelsea and Watford to cover the signings of Glen Johnson and Tommy Smith.

They are also being sued by former defender Sol Campbell for 1.7m for unpaid image rights.

Chainrai recently became Portsmouth’s fourth owner of the season, taking 90% of the club shares after the previous owner Ali Al Faraj defaulted on loan payments due to him.

Phil Hall, spokesman for Chainrai, defended the club’s owner and said that administration was unavoidable because of the size of debt.

“He (Chainrai) was given false promises when he came in. He asked the questions and was given answers and assurances that turned out not to be true,” Hall said.

“Having put 17m of his own money in, unfortunately he found the club facing a winding-up order on Monday.

“He had a choice of allowing the club to go into administration, for someone to go in and try to bring it back into a stronger financial position. He feels he’s a victim – the club have been overwhelmed by these debts and he is a reluctant owner.

“He wants to do what is right for the club but also to protect what money he’s put in.”

Despite their precarious financial position, O’Reilly believes the club will continue to exist, while former Pompey boss Paul Hart, sacked in November after just four months in charge, thinks administration could provide a platform for a “fresh start”.

He told BBC Radio 5 live: “I think the club can be strong again if they use some foresight and planning and adopt a restructuring programme.

“It looks like administration is necessary and hopefully will give the club a chance to recover.

“The supporters have been long suffering and there are some very good, conscientious people who work there we should be thinking about because their jobs are in a precarious position.”

Despite the threat of the club being forced into offloading its only asset – the players – many fans will be relieved they still have a club to support with fixtures remaining unaffected.

Pompey travel to fellow-strugglers Burnley on Saturday before the FA Cup quarter-final clash with Birmingham the following weekend.

It has been a tumultuous two years at Fratton Park since manager Harry Redknapp, who moved to Tottenham last season, steered them to FA Cup glory in 2008 – their first significant silverware in 58 years.

England striker Jermain Defoe and midfielder Lasanna Diarra were sold in January 2009 and Defoe’s England team-mates Peter Crouch and Glen Johnson followed at the end of last season.

Keeper Asmir Begovic and defender Younes Kaboul were offloaded last month and only a Premier League ruling that the club could not sell players outside the transfer window prevented further sales.

Debt-laden Portsmouth have been called “completely dysfunctional” as they became the first Premier League club to enter administration.

Accountant Nick O’Reilly of Vantis, who recently examined the club’s books, said Pompey’s business methods had gone “against all good governance”.

“I came away not knowing who controlled what,” O’Reilly told BBC Sport.

Portsmouth entered administration on Friday and will be docked nine points, leaving them facing certain relegation.

With debts of about 60m, they were due to face a winding-up order on 1 March over an unpaid 11.7m tax bill owed to Her Majesty’s Revenue and Customs.

However, that action was suspended when the Fratton Park club declared earlier this week its intention to go into administration unless a buyer for the club could be found.

Phil Hall, spokesman for Pompey owner Balram Chainrai, claimed four parties were interested in a possible takeover but Thursday’s deadline passed without any indication that a deal was close.

Administrator Andrew Andronikou, of insolvency experts UHY Hacker Young, will now begin the process of cutting costs at the club to try to keep it as a viable entity.

Chainrai became Portsmouth’s fourth owner of the season earlier this month, taking 90% of the club’s shares after previous owner Ali Al Faraj defaulted on loan payments due to the Hong Kong-based businessman.

Pompey’s financial woes have been well documented.

Players have been paid late on four occasions this season, while the club is also involved in a separate dispute with former owner Sacha Gaydamak over whether they have missed a deadline in paying a 9m chunk of the 28m they owe him.

The Premier League also withheld 2m of transfer payments recently and diverted a 7m slice of TV revenue to Chelsea and Watford to cover the signings of Glen Johnson and Tommy Smith respectively.

Portsmouth, currently bottom of the table with only 16 points, are also being sued by former defender Sol Campbell for 1.7m for unpaid image rights.

Despite their precarious financial position, O’Reilly, the accountant who prepared the financial statement that Pompey had to submit to the High Court earlier this month, is hopeful the club will continue to exist.

“I remain confident Portsmouth will survive,” he said. “They’ll do a deal with creditors, though HMRC is spitting feathers because Portsmouth have been a serial late payer.

“The club could end up a few leagues further down the football pyramid, but for the majority of Pompey fans that will be a good result.

“A perfect result would be a properly constituted board.”

Portsmouth are likely to need between 22m and 26m to keep the club going until the end of the season.

But with Fratton Park having been sold to Chainrai, they have effectively just one asset remaining – the players.

According to the club’s accounts, the playing staff is worth 23m, although the board claim the squad is worth much more.

“Unlike Newcastle, Portsmouth don’t have a large fan base and lots of corporate facilities,” added O’Reilly. “They are completely dependent on TV rights.

“Buying clubs will know that Portsmouth have to sell and will extract the best price they can. Not only that but players like David James have no resale value at all.”

Portsmouth employ nearly 600 people – directly or indirectly – and O’Reilly warned them to expect a “rocky” time ahead.

“The next few months are crucial to the business,” he said. “People will lose jobs, but hopefully the club will come out the other side.”

Having been through Portsmouth’s books, O’Reilly believes that having had four owners this season – Gaydamak, Al Faraj, Sulaiman al-Fahim and now Chainrai – decision-making at the club became paralysed.

“There has been blind inertia to what has been going on,” added O’Reilly. “When Sulaiman al-Fahim was out of the country, no decisions were being taken and the board were having to firefight.

“Ali Al Faraj took over and he brought in executive director Mark Jacob and various consultants, but that caused further inertia.

“What you want is clearly defined lines of communication, with decisions being followed through.

“When the administrator takes charge the club will have one person making decisions and he can start managing.”

Former Portsmouth manager Paul Hart, sacked in November after just four months in charge, was saddened by the club’s plight but thinks administration could provide a platform for a “fresh start”.

He told BBC Radio 5 live: “I think the club can be strong again if they use some foresight and planning and adopt a restructuring programme.

“It looks like administration is necessary and hopefully will give the club a chance to recover.”

Hart added: “The supporters have been long suffering and there are some very good, conscientious people who work there we should be thinking about because their jobs are in a precarious position.

“The players have done very little wrong and conducted themselves well. There are a lot of good people at the club and we tend to forget them.”

Portsmouth chief executive Peter Storrie has defended his 1m-plus salary but vowed to take a pay cut as the club prepares for administration.

Last year Storrie earned 1.2m, a 30% increase on his previous year’s salary despite the club’s reported 70m debt.

Storrie said: “I’ve seen 1.4m bandied around, but my basic salary is less than half of what’s been reported.”

Portsmouth will go into administration by Friday unless a buyer is found for the Premier League’s bottom club.

Explaining his remuneration package at the financially-stricken club, Storrie told the Portsmouth News: “The rest of [my salary] has been a bonus given by former owner Sacha Gaydamak every year.

“That’s in recognition of me keeping the club going for him by selling players.

“I’m prepared to cut my basic [salary] quite substantially,” added Storrie.

“I have already spoken to the administrator and he wants to keep things settled, which means me staying on.

“I will work with him and I believe he wants me to help him sell the club to the right person.

“There will be cuts at all levels. That’s something for the administrator to do to make sure the club keeps going. I will be taking a big cut as well.”

Andrew Andronikou of accountants Hacker Young has been engaged as Pompey’s administrator by the crisis-hit club and is likely to officially take on the role if, as expected, no buyer emerges.

If Pompey enter administration they will be docked nine points, but the winding-up order against them due to be heard on 1 March will be suspended.

Eight points from top-flight safety, Pompey’s financial woes have meant their players have been paid late on four occasions this season.

Entering administration would leave them 17 points from safety, with only 12 matches remaining to preserve their Premier League status.

The club are also involved in a separate dispute with Gaydamak over whether they have missed a deadline in paying a 9m chunk of the 28m they owe him.

The Premier League recently withheld 2m of transfer payments and a 7m slice of TV revenue to divert to Chelsea and Watford for the signings of Glen Johnson and Tommy Smith respectively.

The Fratton Park club are also being sued by former Pompey defender Sol Campbell for 1.7m for unpaid image rights.

Balram Chainrai recently became Portsmouth’s fourth owner of the season, taking 90% of the club shares after the previous owner Ali Al Faraj defaulted on loan payments due to him.