Portsmouth appears to be heading for a winding up order in the High Court on Wednesday, struggling to reach a deal with the government's customs authority over overdue tax payments.
The winding up order goes to court in London and, if granted, Portsmouth could become the first Premier League team to go out of business. Last in the Premier League standings and with its fourth different owner in six months, Portsmouth has run into one financial problems after another this season.
The southcoast club, which won the FA Cup two seasons ago, has missed paying its players and staff on time on four different occasions this season. It was banned from buying players in the January transfer window and, when it sold players, the Premier League passed the money on to clubs which were owed cash.
Now it is the subject of a winding up order by the Revenue and Customs authority and such a ruling could put it out of business.
Its latest owner, Hong Kong businessman Balram Chainrai, said within days of taking over that it was only a short-term arrangement and he was looking for someone else to buy the ailing club. Chainrai only took over Portsmouth because he had loaned the club money and he had reportedly become frustrated after and it had missed several repayment deadlines.
When the season started, Israel-based businessman Sacha Gaydamak was in charge of Portsmouth and sold it to United Arab Emirates investor Sulaiman Al-Fahim. His ownership lasted less than six weeks as he failed to refinance the club and told it on to Saudi businessman Ali Al-Faraj.
Al-Faraj's takeover was portrayed as rescuing the club. But he struggled since October to find investors to pay taxes and the debts owed to other clubs.
Portsmouth chief executive Peter Storrie said ahead of Tuesday's Premier League game against Sunderland that there appeared to be progress towards finding new owners.
"I already have more than one interested party and am hopeful that we can finally find owners who have the best interests of everyone at the club at heart in order to move us forward," he wrote in the club's match magazine.
