Portsmouth may not complete season
The south coast club recently entered administration for the second time in as many years, leaving their immediate future hanging in the balance.
It has now been confirmed that the Championship side will not be receiving any parachute payments from the Premier League, with the money set to go to former owner Sacha Gaydamak.
"Following our discussions with the Premier League and Football League over the past few days, it has emerged that Portsmouth Football Club is unlikely to receive any further parachute payments or other league funding," Birch told the club’s official website.
"We had previously stated that there was a real danger of the club running out of cash before the end of the season.
"The risk of this happening increases substantially without the money from the football authorities.
"Unless something significant happens, there is a real possibility that we may not be able to fulfil the season's fixtures.
"One potential issue appears to come from the assignment of £2.2 million of parachute payments that was made by the old company to a previous owner.
"We have instructed lawyers to challenge this, but the process may take time."
The announcement comes after it had been revealed last month that the Portsmouth players hadn’t been paid since December.