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Premier League holds £2m of Pompey transfer funds

The Premier League will hold on to more than £2 million from Portsmouth's player sales in January to cover money owed to other clubs.

• Avram Grant slams broken promises

Chelsea and Watford will both receive cash owed from when financially-stricken Pompey signed Glen Johnson and Tommy Smith respectively. And, once the players' wages have been covered, the £4 million remainder from the £8 million Portsmouth earned from selling defender Younes Kaboul and keeper Asmir Begovic could be an important lifeline.

Portsmouth say they expect to pay the players' wages for January ''in the next day or two''.

The club will use a chunk of the cash to try to persuade HM Revenue and Customs to reschedule the payments on the £7.5 million owed in VAT. However, another creditor has also joined in with HMRC's winding-up petition to the High Court on Wednesday next week.

Grosvenor Basingstoke Properties are claiming they are owed money by Portsmouth though that is being disputed by the club.

Meanwhile, Portsmouth are also involved in a separate dispute with former owner Sacha Gaydamak over whether they have missed a deadline in paying a £9 million chunk of the £28 million they owe to him.

It is unlikely however that Gaydamak will take any action to push the club towards administration because that would not be in his best interests in terms of reclaiming his debt.

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