Portsmouth FC: Andrew Moon looks at what finances could be like in the Championship

Portsmouth CEO Andrew Cullen
Portsmouth are five points clear at the top of League One

"Regulation is coming". It's not the kind of statement to trigger 'limbs' in the away end but Portsmouth fans know more than most that greater protection is needed for clubs from unscrupulous owners.

It is hard to know quite how many individuals would have been blocked from taking control of Portsmouth by a beefed up "owners and directors" test but you would hope the answer isn't zero.

The strange thing about Pompey's recent history is eventually everything turned out fine. I don't think selling a club to a convicted arms dealer's son and allowing them to massively overspend is a great business model. It did however give Portsmouth some memorable days such as two FA Cup finals at Wembley and AC Milan coming to Fratton Park. No one who went to those matches will ever forget them.

The years after that were rather more painful. Portsmouth were saved by the incredible dedication of its supporters. The pressure and hours required to bring the club into community ownership took a heavy toll on many involved. Football fans shouldn't have had to go through that just to bring their club back from the brink.

There have been far too many other clubs who have faced similar troubles and Bury even went under. It's encouraging that something is finally being done. Although the cynics will want to see all the fine details before hailing a new regulator as the saviour people hope it will be.

The irony is it's at least 15 years too late for Portsmouth and the new football regulator is likely to come into force when the club is as stable as it has been for many years.

Significant off-field investment means Fratton Park is in the best shape for years and while a lot more work is still required at the training ground, improvements are being made all the time and the site is owned by the football club.

However if all goes to plan on the pitch in the coming weeks, once the celebrations have died down Pompey will have to face up to a daunting new financial reality. It was interesting to hear chief executive Andrew Cullen say the club could be sustainable in the Championship in a conversation with the Pompey Supporters Trust's Donald Vass. However he did admit the second tier's finances were "insane".

The three relegated clubs from the Premier League will receive parachute payments next season likely in excess of £50m, far, far more than Portsmouth's turnover. Survival and mid-table finishes will be very achievable for Pompey in the Championship. But competing at the top end will be extremely difficult.

Negotiations over a "new deal for football" don't seem to be getting anywhere. Parachute payments appear non-negotiable for the Premier League in any future settlement. More money flowing down the pyramid can only be a good thing but I don't see how the Championship can ever return to a financial state where money isn't being haemorrhaged by most clubs unless parachute payments are severely reduced from their present levels.

Portsmouth have moved beyond needing a regulator to save them from their own overspending or a dodgy owner. That's great progress. Other clubs still need some protection. But surely somewhere in the future the regulator, or someone, needs to ensure that well run clubs who are smart and make good decisions can move through the leagues in the right directions without spending far more than they earn. That does not seem like the case at the moment.