Portsmouth did not pay all their staff this month - the third time it has happened this season - and boss Avram Grant faces the prospect of having to sell some of his best players. Younes Kaboul, Kevin-Prince Boateng and David James are among those he might lose.
The Observer says the news comes as a senior dressing room source voiced his fears of the club dropping down not just to the Championship but to League One.
The source urged Ali al-Faraj to act decisively and said: "We can definitely avoid going down, the spirit is good. But no one should be sold, and we need probably three or four players.
"Everyone believes we are good enough to stay up but if this is not sorted out then we could go into freefall. If we were relegated who knows what might happen next season? It could happen again."