The administrators of Portsmouth FC have today revealed that they will face no more challenges from HMRC in regards to the company voluntary agreement (CVA) that has been agreed upon.
A spokesperson for HMRC confirmed this announcement adding that they were ‘disappointed’ with the courts decision but would not be appealing and had no intention of launching further legal action.
The CVA needed an approval rating of 75% from all creditors but received a unanimous vote of 80.3%, HMRC were opposed to the CVA as they felt that it favoured the football creditors over everyone else – meaning that players and other clubs owed money to would receive 100% of monies owed and the rest would need to be divided amongst creditors.
The last football club to be made to pay 100p of every £1 they owed was Middlesbrough FC in 1986, a ruling which has since been changed and now clubs are only expected to pay the 100% back to football related creditors.
Portsmouth FC were the first top tier club in England to go into administration and received a nine point deduction as such. They began a crucial season in the N-Power Championship on Saturday with a 2-0 defeat away to Coventry City.