Post by QPR Report on Dec 24, 2009 7:25:43 GMT
Telegraph/By Paul Kelso, Chief Sports Reporter
Portsmouth secretly begin to offload players as debt crisis mounts
Portsmouth's cash-strapped new owners have begun a secret fire-sale of players in an attempt to meet the troubled club's debts, Telegraph Sport can disclose.
In an increasingly desperate attempt to raise capital the club is seeking to push through deals for four leading players before the official opening of the January transfer window.
Discussions with Manchester City over the possible sale of Younes Kaboul are thought to be underway – he would be Roberto Mancini's first purchase as City manager – and rival clubs have been alerted to the immediate availability of David James, Aruna Dindane and Nadir Belhadj.
It is thought that the Premier League will give the club dispensation to complete financial transactions before the January window opens in an attempt to ease their parlous financial situation.
Portsmouth face a series of crucial debt repayment deadlines in the next five weeks, including up to £6 million owed to the Inland Revenue, £2 million of which was due on Wednesday, and an £8 million payment due to former owner Sacha Gaydamak by the end of January.
The club also has to meet the players' December payroll of £1.8 million, with a further £1.5 million owed in PAYE to the Inland Revenue, in the next week.
In a separate development the Premier League is also seeking urgent clarification of the role of Daniel Azougy, a lawyer reported to have multiple fraud convictions in Israel, who is now in charge of Portsmouth's finances.
Azougy was brought into the club by new owner Ali Al-Faraj and has taken over day-to-day control of the club's finances from finance director and board member Tanya Robbins.
As Azougy is not a director he is not subject to the Premier League's fit-and-proper persons test, but the league has written to Portsmouth seeking clarification that Azougy is not operating as a "shadow director" in breach of their regulations.
Azougy was banned from the Israeli Bar Association for 14 years in 2002 after being convicted of four counts of fraud and obstructing the course of justice. In March this year he was convicted in the Tel Aviv District Court of presenting false documents to the Israel Securities Association regarding the sale of his stake in a public company in 1999.
Azougy and British property lawyer Mark Jacob, appointed as an executive director at Fratton Park last month, are effectively running the club on behalf of the new owners. Chief executive Peter Storrie, also a director, no longer has any control over financial matters.
Azougy is an associate of Israeli businessmen Roni Mana and Yoram Yosepov, who are reported to be operating as advisors to Al Faraj, who is yet to attend a game at Fratton Park. A club spokesman said on Wednesday night that Azougy had been employed on a short-term contract to help the new owner deal with the finances, and that he reported to the board.
Last month the club failed to pay the players' wages on time, and the new owners have outstanding debts of around £60 million. The club's attempts to off-load players are a blow to manager Avram Grant, who had hoped to strengthen the squad in the January window.
The Premier League has imposed a transfer ban that prevents the club buying new players until they have settled debts to football creditors, including seven-figure sums owed to Chelsea in relation to the purchase of Glen Johnson and to Lens for Dindane.
So keen are the club to do a deal that they will settle for a cut of any profit on the sale of the Ivory Coast striker, who will be unavailable during the African Cup of Nations. Tottenham are also understood to be owed money on the sale of Kaboul, limiting the upside to Portsmouth of a quick sale. England goalkeeper James would also raise only a small fee if he is sold.
Questions over the viability of Portsmouth have haunted the club since the disastrous tenure of Sulaiman Al-Fahim, who failed to pay a single bill in his five-weeks in charge.
That opened the door for Al-Faraj, who effectively secured a 90 per cent stake for the price of the September pay-roll, which Al-Fahim could not meet. Al Faraj has since borrowed more than £25 million to meet commitments, the bulk of it from Balram Chainrai, a Hong Kong-based businessman.
Fratton Park has been used as security against a loan from Chainrai's Portpin Ltd after a previous mortgage from Singer and Friedlander taken against the ground was settled in Novermber.
www.telegraph.co.uk/sport/football/leagues/premierleague/portsmouth/6875439/Portsmouth-secretly-begin-to-offload-players-as-debt-crisis-mounts.html
Portsmouth secretly begin to offload players as debt crisis mounts
Portsmouth's cash-strapped new owners have begun a secret fire-sale of players in an attempt to meet the troubled club's debts, Telegraph Sport can disclose.
In an increasingly desperate attempt to raise capital the club is seeking to push through deals for four leading players before the official opening of the January transfer window.
Discussions with Manchester City over the possible sale of Younes Kaboul are thought to be underway – he would be Roberto Mancini's first purchase as City manager – and rival clubs have been alerted to the immediate availability of David James, Aruna Dindane and Nadir Belhadj.
It is thought that the Premier League will give the club dispensation to complete financial transactions before the January window opens in an attempt to ease their parlous financial situation.
Portsmouth face a series of crucial debt repayment deadlines in the next five weeks, including up to £6 million owed to the Inland Revenue, £2 million of which was due on Wednesday, and an £8 million payment due to former owner Sacha Gaydamak by the end of January.
The club also has to meet the players' December payroll of £1.8 million, with a further £1.5 million owed in PAYE to the Inland Revenue, in the next week.
In a separate development the Premier League is also seeking urgent clarification of the role of Daniel Azougy, a lawyer reported to have multiple fraud convictions in Israel, who is now in charge of Portsmouth's finances.
Azougy was brought into the club by new owner Ali Al-Faraj and has taken over day-to-day control of the club's finances from finance director and board member Tanya Robbins.
As Azougy is not a director he is not subject to the Premier League's fit-and-proper persons test, but the league has written to Portsmouth seeking clarification that Azougy is not operating as a "shadow director" in breach of their regulations.
Azougy was banned from the Israeli Bar Association for 14 years in 2002 after being convicted of four counts of fraud and obstructing the course of justice. In March this year he was convicted in the Tel Aviv District Court of presenting false documents to the Israel Securities Association regarding the sale of his stake in a public company in 1999.
Azougy and British property lawyer Mark Jacob, appointed as an executive director at Fratton Park last month, are effectively running the club on behalf of the new owners. Chief executive Peter Storrie, also a director, no longer has any control over financial matters.
Azougy is an associate of Israeli businessmen Roni Mana and Yoram Yosepov, who are reported to be operating as advisors to Al Faraj, who is yet to attend a game at Fratton Park. A club spokesman said on Wednesday night that Azougy had been employed on a short-term contract to help the new owner deal with the finances, and that he reported to the board.
Last month the club failed to pay the players' wages on time, and the new owners have outstanding debts of around £60 million. The club's attempts to off-load players are a blow to manager Avram Grant, who had hoped to strengthen the squad in the January window.
The Premier League has imposed a transfer ban that prevents the club buying new players until they have settled debts to football creditors, including seven-figure sums owed to Chelsea in relation to the purchase of Glen Johnson and to Lens for Dindane.
So keen are the club to do a deal that they will settle for a cut of any profit on the sale of the Ivory Coast striker, who will be unavailable during the African Cup of Nations. Tottenham are also understood to be owed money on the sale of Kaboul, limiting the upside to Portsmouth of a quick sale. England goalkeeper James would also raise only a small fee if he is sold.
Questions over the viability of Portsmouth have haunted the club since the disastrous tenure of Sulaiman Al-Fahim, who failed to pay a single bill in his five-weeks in charge.
That opened the door for Al-Faraj, who effectively secured a 90 per cent stake for the price of the September pay-roll, which Al-Fahim could not meet. Al Faraj has since borrowed more than £25 million to meet commitments, the bulk of it from Balram Chainrai, a Hong Kong-based businessman.
Fratton Park has been used as security against a loan from Chainrai's Portpin Ltd after a previous mortgage from Singer and Friedlander taken against the ground was settled in Novermber.
www.telegraph.co.uk/sport/football/leagues/premierleague/portsmouth/6875439/Portsmouth-secretly-begin-to-offload-players-as-debt-crisis-mounts.html