Pompey face administration deadline on Friday

Portsmouth are set to become the first Premier League club to go into administration after owner Balram Chainrai served notice of his intention to put the club into the hands of insolvency experts on Friday.

Chainrai said it was now unlikely that a takeover deal would be done before the end of the week and administration will prevent the club from being wound up in the High Court on Monday.

But it will also mean certain relegation for Pompey – there is an automatic nine-point penalty for any Premier League club going into administration and that would leave the side on just seven points, 16 behind their nearest rivals.

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After that there is the prospect of a continuing player exodus and a long period of rebuilding in the Championship.

Chainrai is still in talks with four different consortiums about a takeover but any chance of a deal being done is remote, and with a winding up order due in the High Court on Monday, the decision has been taken to go into administration instead to save the club.

A statement said: "Businessman Balu Chainrai, the owner of Portsmouth Football Club, has today served notice that the club will go into administration unless new owners can be found by Friday.

"Mr Chainrai and fellow investors from his Portpin investment vehicle, are in London to continue talks with representatives of four different groups interested in buying the south coast club, but have had to reluctantly accept that it is now unlikely a deal can be done before a winding up hearing due to be heard in the High Court on Monday."

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Chainrai's spokesman Phil Hall said administration would keep the club alive as the winding up order is automatically suspended. Portsmouth have debts of 70m and the winding up order was over 7.5m owed to HM Revenue and Customs.

One possible big loser from the club going into administration is former owner Sacha Gaydamak, who says he is still owed 30m.

The 17m put in by Chainrai and Portpin as a loan to the previous owner may also be difficult to reclaim though he has suggested a deal where the club would pay him 1m a year rent for Fratton Park until he has recouped the cash.

Chainrai's spokesman Hall added that none of the four consortiums had made a credible offer.