The Portsmouth City Council have agreed to loan the Pompey Supporter’s Trust £1.45m in order for them to continue to edge closer to the takeover of Portsmouth Football Club.
The option approved (option two) was proposed as follows:
Make budgetary provision for £1.45m of loan support to the PST for a 12-month period ending 31 August 2013, which shall be conditional upon:
i) The Club owned and operated by the PST being deemed to be the “Relegated Club” and that transfer of membership of the Football League is obtained
ii) The business and assets of the Club are acquired for £7.68m and that this
consideration for the acquisition includes provision for the full and final settlement of the Football creditors
iii) The Club owned and operated by PST obtaining all rights to the £11.7m of parachute payments
iv) Obtaining a first legal charge over Fratton Park
v) That no other legal charges are made against the income or assets of the Club beyond those set out in the PST Business Plan received on 1st August 2012 without prior consent of the City Council
vi) That the City Council must obtain an assignment of unencumbered parachute payments (preferable) of a sum sufficient to repay the loan from the proper body entitled to provide it or alternatively that an investor
guarantee is provided by the PST for the full £1.45m
vii) A “subscription” agreement (or equivalent) for each of the Fan Share Scheme, High Net Worth Investors and Associate Director Scheme is in place which is satisfactory to the City Solicitor setting out the conditions of the investment and disinvestment into the Club and which does not allow any disinvestment until such time as the loan to the City Council has been repaid
viii) Proof of funds from the Fan Share Scheme, High Net Worth Investors and Associate Director Scheme for the sum agreed in recommendation 2.3 has been demonstrated to the satisfaction of the S151 Officer and which are subject to the subscription agreement (or equivalent) set out in vii)
ix) A suitably skilled and experienced Chief Executive is appointed to the Club by the PST
It’s a massive step in the right direction and the next thing on the list is to get Portpin to agree to the £2.75m offer for debt owed to them.