Not just that, but Tommy Smith's transfer to Queens Park Rangers has also fallen through for the same reason.
Pompey are now working on getting Lawrence to Pompey on an emergency loan basis, with a view to loaning Smith to QPR on the same basis with a view to securing permanent deals for both of the players in January.
When I first read about this news earlier in the day, I raised a wry smile. When it was confirmed by Pompey's official site later on, I simply chuckled to myself.
Once-upon-a-time, I would have been angry at this news but having become so accustomed to the farce of how this football club has been run in the past, the latest news comes as no surprise.
Andrew Andronikou is "adamant" that the papers were sent through on time and has accused the Football League of brinkmanship in an Ali G "iz it coz we iz Pompey?" sort of way.
The cynics will say that the administrators did this wrong deliberately to satisfy another agenda which involves saving money at the cost of not having a permanent squad.
Whatever the reason, this latest revelation could have serious repercussions on the club both on and off the pitch.
For starters, we're not going to be getting any of that relatively huge fee for Tommy Smith immediately. Should Neil Warnock take Smith and realise that he really isn't that good, then that £1.5 million asking price simply won't be paid.
And although Liam Lawrence stated that he was happy to join Pompey and "accept the challenge" in a recent interview, will he now decide that he doesn't want to join Pompey after all? He wasn't exactly rushing to sign on the dotted line, was he?
Even if he does sign for us, who is to say that he won't play so well that a club with money comes and offers Stoke a large sum of cash that would exceed what Pompey would be owed for Wilson if Lawrence didn't join us permanently?
This also affects Pompey's loan quota for the season, having already borrowed Ibrahima Sonko and Carl Dickinson from the same club. It is my understanding that Pompey cannot name more than five loan players in the matchday 16, but can loan up to four from any club.
So, things have got more complicated in typical Pompey fashion, but (fingers crossed), Lawrence will be available to play against Ipswich this Saturday and Steve Cotterill will still be able to loan players from other clubs, even if it is one less than he had originally planned.
Not everything about transfer deadline day was ridiculous in a bad way, though. According to Ian Holloway, David Nugent didn't answer his phone when contacted by Blackpool and so couldn't complete his loan move to the Tangerines, even though the deal had been agreed by Pompey.
Why didn't he answer his phone? Who knows? Perhaps he really wants to stay or he just doesn't want to anger the Preston fans who idolised him by joining their arch rivals?
It's just another laughable episode in the circus that is Portsmouth Football Club, only the clowns have been replaced by jesters. We may laugh at Southampton for their recent troubles but we're still the laughing stock of the South Coast at the moment.