EPL Franchise Notes: Portsmouth Confirms Latest Takeover

Portsmouth Stresses Chainrai's Takeover Short- Term Solution To Ongoing Financial Problems

In London, Ben Smith reports EPL club Portsmouth confirmed that a company owned by Hong Kong-based businessman Balram Chainrai has "seized control of the troubled club from" current Owner Ali al-Faraj. Chainrai is "believed to have taken over al-Faraj's 90[%] shareholding after becoming frustrated that the club had missed deadlines to repay money he was due for substantial loans he gave to them earlier this season." If Chainrai "passes the Premier League's fit and proper persons test, he will become the fourth owner" of the club this season. However, Portsmouth "stressed Chainrai's takeover is a short-term solution to their ongoing financial problems, with his main aim being to prevent the club going into liquidation while new owners are found" (LONDON TIMES, 2/4).

SLOW START: In London, Alistair Dawber reports investors in Manchester United's "much-hyped" US$800M bond issue launched last month have "lost money on the deal after weaker markets and a perception that the club is a poor creditor led to a drop in its value last week." The bond was "initially priced at a discount to attract investors and has since fallen even further," and bold holders "wishing to sell now would make a five percentage point loss." The bond's low value is "exacerbated by the tepid interest shown in the deal from traditional investment houses, which would normally underpin a deal, leaving wealthy individuals in Asia to pick up the surplus" (London INDEPENDENT, 2/4).

TIME FOR A CAP? In Manchester, Dave Middleton reports West Ham United co-Owner David Sullivan has "reignited the debate over a salary cap in the Premier League, saying it may be the only solution to the 'madness' of current top-flight wages." Sullivan said that high salaries "were 'bad for football' and hit out at the imbalance created by the spending power of the billionaire owners of Manchester City and Chelsea." Sullivan: "I've always been against it but I'm starting to swing towards it, as they have in American football. Other than that I just don't see an end to it -- of wages out of all proportion to the turnover of the clubs. Somehow there should be some sort of control" (Manchester GUARDIAN, 2/4).