PORTSMOUTH could face a points deduction this season, despite speculation today that they have a year's grace period.

Reports this morning suggested Pompey would not face being docked points this coming season.

In fact, Portsmouth will face a points deduction if they come out of administration without a Company Voluntary Agreement (CVA), under the Exceptional Circumstances Clause in the Football League rule book.

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A Football League source has told the Daily Echo the only way for Pompey to avoid being docked points if they fail to get a CVA is to stay in administration.

That however runs the risk of being thrown out of the Football League if they are still in administration at the start of 2011/12 season.

Football League clubs cannot be in administration for either 18 months or at the start of two consecutive seasons.

It also runs the risk of the administrator running out of money as he is not legally permitted to increase the club’s debts.

The Exceptional Circumstances Clause, allows the Football League board to impose certain conditions on clubs should the need arise.

This is the rule which saw Leeds United given their 'golden share' in return for being docked 15 points, after coming out of administration without achieving a CVA.

It also saw Luton Town docked 20 points for going into administration a third time, while both Bournemouth and Rotherham were handed 17 point deductions, for entering administration second time.

Portsmouth previously entered administration in 1999, so Pompey could conceivably face a significant point deduction as well.

However, that would be a decision for the Football League board if the club comes out of administration.

Pompey's creditors will meet on June 17 to decide on a CVA - although HMRC has indicated it will most likely vote against it.