This is a sad day, Portsmouth have become the first Premier League club to enter administration since the formation of the league in 1992. The question is will it be the first of many or will other clubs get their finances in order?
Portsmouth are now guaranteed to be relegated once they’ve been given the 9 point penalty, cementing their place at the bottom of the league.
The reason for the club’s plight is simple: excessive spending on players – in transfer fees but especially wages – that could not possibly be sustained by the income generated by a medium-sized club, even with the financial assistance of the television revenue generated by the Premier League.
Avram Grant and the players are reported to be considering voluntary wage cuts aimed at preserving the jobs of some staff, but whilst that is a noble offer it is way too late. With debts of over £60 million redundancies are bound to happen.
The biggest challenge now is to the Premier League themselves, how will they ensure better financial management of clubs and that owners have the appropriate finances to run a club.