The Portsmouth situation show how bad English football is. The governing, financing and running of clubs is increasing pushing into areas unseen before. Clubs have too much debt, being loaded with debt, mostly because expectations are so high for football clubs.
The FA and leagues have had to peddle quite hard to ensure Portsmouth and other clubs don't fail.
If I am correct Liverpool sale was forced by the chairman whom was appointed by the bank, this is could be seen as administration as the bank has in effect seized control of the club! But the FA and leagues don't really have the rules to say if this is legal or not. In my view it is basically administration because the bank basically had control, but this was complicated even more with the appointment and law suits.
The leagues and FA have to do something. They are quite happy to force clubs to pay the full cost of a transfer despite being in administration and not giving a stuff about other creditors, this means clubs are preferential creditors, something even HMRC (Tax) are no longer allowed in law! Next up the league told Chainrai to give up his security over the club! the cheeky people, they seem to make up the law and rules as they see fit!
So clubs can be paid in full but creditors and people who have a right in law for money are screwed.
Now UEFA is thinking of introducing a spending limit, something of 40million Euros over 3 seasons. This means the days of mega transfers seen by the likes of Rolando no longer happening. Now add this to players wanting more money and a ruling which allows players to buy out their contract, Clubs won't be making much money on transfers, so clubs will have to make the money up elsewhere in order to make money back. This would force the owners of Man Utd, Liverpool and Man City to stay at the club a long time or basically put it in admin then liquidate it. If they pay stupid money for players and still have outstanding debts with clubs they will still have to pay them. We could see more clubs in future go to the brink.