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Council approves loan to help Portsmouth Supporters' Trust save club from liquidationLast updated: 09 August 2012 15:46
Portsmouth City Council today (Thursday 9 August) voted unanimously in an extraordinary council meeting to approve a loan of £1.45m to the Portsmouth Supporters’ Trust (PST), in support of their bid to purchase Portsmouth Football Club.
Leader of the council, Cllr Gerald Vernon-Jackson, said:
"This has been a difficult decision, but if the council does not offer PST a loan then it is likely Portsmouth Football Club will not survive.
"This is a loan, not a gift or a blank cheque. The council will borrow the money and PST will have 13 months to repay us in full, with interest. No services will be affected as the money will not come directly from the current council budget.
"The financial impact of the football club on the city is huge. Livelihoods depend on the club surviving and thriving. The community projects the football club runs are hugely important to encouraging young people and supporting their potential and helping them through difficult times.
"But this is a bad day for football. Because the financing of clubs across the country are so badly run other places will be facing similar situations.
"We have only commited to this loan if conditions are met. This includes the council being repaid in full before PST’s high asset investors remove their money, and also that PST can demonstrate their high net worth individuals have deposited £1m. And obviously, we hope the worst case scenario doesn’t ever happen, but if the club no longer exists the council will have Fratton Park as security.
"We are the last resort and we’ll play our part in helping the club survive. But players will still have to agree to take cuts, so ultimately the future of Portsmouth Football Club may rest in their hands.
"We wish PST the very best of luck."
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