Britain's taxman accepts Pompey's administration

Troubled Premier League club Portsmouth received a boost in their attempt to avoid liquidation yesterday as the British tax authority accepted the team's move into administration.

Officials at HM Revenue and Customs had insisted Portsmouth's owner Balram Chainrai did not have the legal right to put the club into administration, but they have now abandoned that claim.

Chainrai appointed Andrew Andronikou as the club's administrator last month and he cut 85 jobs at the club on Wednesday.

A spokesman for the club said: "The Revenue has accepted the administration is valid."

FA Cup semi-finalists Portsmouth, currently bottom of the Premier League, now face a nine-point deduction for entering into administration and the punishment is almost certain to lead to their relegation at the end of the season.

Pompey have debts totalling over 80 million pounds and became the first Premier League club to enter administration last month.

Massive savings are needed to keep the club afloat but players - the highest earners on the payroll - cannot be made redundant due to protection afforded to them by the Professional Footballers' Association.

On Wednesday, 85 of the cash-strapped club's employees were made redundant.

Andronikou has considered trying to persuade the Premier League to let him sell players outside the transfer window and then get them loaned back to Portsmouth, where they would become non-playing members of the squad.

But with an FA Cup semi-final against Fulham or Tottenham looming, Andronikou is adamant no players will leave Fratton Park before the Wembley showdown next month.

"Selling players is an option but first I need to broach the subject with the Premier League. I need their concession," he said.

"As an alternative from looking at the Premier League advancing TV money, I suggested to them to possibly open the window to allow me to sell two players on a loan-back.

"However, I will not be looking to sell players before the semi-final and I will not be looking to cancel loan agreements before the semi-final."