I think if the Premier League do indeed stand against this then they will be removing their nose to spite their face. The transfer window is bollocks anyway, so it's removal would be a great thing for all involved. They need to lock the representatives of the other 19 clubs in a room and not let them out until the details are resolved.
Portsmouth have brought disgrace to the Premier League and to English football, but that's the way things are now so they need dealing with. Let them sell their players and continue until the end of the season