The BBC reports that Portsmouth chief executive Peter Storrie told UK newspaper the Sunday Mirror that the club had written a 'legal letter' to the Premier League, and that he believed it had 'a good case'.
The Premier League has said Portsmouth cannot sign new players, and has diverted television money due to the club to pay it's creditors, after recent economic difficulties which have seen Portsmouth staff and players being paid late on three occasions this season.
Scudamore, speaking on a UK radio interview, said: "The whole notion of suing the Premier League is interesting because you're suing yourself as a club, and the other 19 clubs," and said the transfer ban would not be lifted until Portsmouth paid the other football clubs to which it currently owes money under previous transfer deals.
Scudamore added that English Premier League clubs earn so much money that only “rank bad management” could see them enter administration.
"You can't say it's impossible to imagine a Premier League club going out of business when it is still in the Premier League but the reality is, given the amount of central income that is generated, it would be rank bad management if a Premier League club were to go into administration,” Scudamore said.
“Infrastructure-wise Portsmouth are in a difficult position but the clubs have assets -- the players -- so they have choices. They might not want to sell them because of their own aspirations but in the harshest scenario that's the circle of life of a football club.”
The Premier League has stopped Portsmouth buying new players until the club pays outstanding debts to other clubs.
Scudamore said that clubs being in debt was not necessarily a bad thing, but said the Premier League had changed its rules recently in order that it could take a “stronger role to make [clubs] sustainable”.