Balram Chainrai Takes Over Portsmouth: A New Month, Another New Owner

Just days into February comes the announcement that Portsmouth has another new owner, taking them up to four for the current season...

And it might not stop there.

Balram Chainrai has taken control of the club by exercising a clause in an agreement between the businessmen, after payments on a £17 million loan to Ali Al-Faraj were not made.

Al-Faraj bought a 90 percent stake in the club from Sulaiman Al-Farid earlier this year, but the club has continued to suffer financially, with wages paid late on four occasions. Debts to other clubs and the HM Revenue & Customs (HMRC) have also not been settled.

Chainrai has taken control of Al-Faraj's 90 percent, aiming to pay off the debt and sell the club to yet another owner.

Portpin, the company behind Chainrai's loan, has a pressing priority to pay off the debt owed to HMRC. Once that is settled—and the club only has a matter of days to do this—they will be able to move forward with a plan of stabilisation.

Debts to other English clubs have been paid off through Premier League TV revenue, while other monies owed to foreign clubs have new agreements in place of a schedule to pay.

Portpin has also taken control of Portsmouth's stadium, Fratton Park, as well as future TV revenue.

While Al-Faraj appears nothing more than a greedy businessman out of his depths in the Premier League, Chainrai and his company at least have some money, using it to bail out Portsmouth already this season.

Whether investment from them is substantial remains to be seen, but their money will at least allow the club to function and to find new owners.

Goalkeeper David James made a valid point when he said the players are being paid, albeit a week or so late; for them it isn't too much of an issue, as the majority are already quite wealthy.

Their focus needs to be on the pitch as they start to slide toward relegation after months at the bottom of the league.

Chainrai and his directors will have to undergo the League's Fit and Proper Persons Test before they can formally take over, but given how futile such a test is anyway, and how easy Al-Farid and Al-Faraj passed, the test is merely academic.

After the glory days and frivolous spending of the Alexandre Gaydamak regime, Portsmouth has suffered through the deceit of Al-Farid and Al-Faraj, neither of whom delivered any of what they offered to the club.

There are good owners out there, but not very many, and Portpin will do well to find a buyer to take on Portsmouth, particularly if they get relegated.

If the debt alone is £60 million, and Portpin deals with the majority of that, they'll want to recoup as much as possible. As Mike Ashley found when Newcastle United were relegated last season, nobody will be prepared to pay £100 million for a Championship club on the basis of history and potential to bounce straight back up.

After selling key players Younes Kaboul and Asmir Begovic in the January transfer window, against the wishes of manager Avram Grant, the club now has no major assets left from which to raise funds at the end of the season.

The dark clouds hanging over the south coast could be there for some time until they find a genuine owner who has money, knows how to run a club properly, and above all is someone who loves the sport and is not investing just to make a lot of money for himself.