maybe it selective reporting, but it occurs to me that their defense isnt "these image rights are a legitimate payment outside of PAYE" but "please dont find against us or we'll go bust and thats not fair". put another way, they dont seem to be argueing the case on it merits but that Portsmouth FC shoud be a special case on the ground its a football club. if that is their case, i would have thought that would hurt them, i cant really see a judge going for that.
There's that and there's also the custom and practice argument - which is precisely what HMRC is arguing about.
I think it must be selective reporting, I can't believe that those are sum total of Portsmouth's arguments, as you say, that would make a very flimsy case.