The Sunday Mirror looked at accounts recently published by Companies House which lists the finances of two of Redknapp's property companies.
One of his companies, Pierfront Development, has debts amounting to nearly £2.6m while its parent company, Redsouth Limited, owes just under £3m.
Pierfront is a building development company that was expected to make £4m in profit by building 92 apartments plus retail space for Tesco in Southsea, Hampshire, but due to the recession the apartments were never built, while an adjourning building that was also owned by the company was lost in a fire.
The Mirror goes on to reveal that: "Harry owns Pierfront via Redsouth Limited, a company which he owns jointly with wife Sandra. Latest accounts for Redsouth disclose liabilities of nearly £3 million at November 30, 2011."
Talks are now believed to be underway for the sale of the Southsea property. Redknapp is believed to have put his home in Sandbanks up as security when originally investing.
Redknapp has been out of work since being sacked as Tottenham manager this summer after failing to agree terms on a new contract.
Last January he was found not guilty of tax evasion. Jurors accepted Redknapp's angry denials that he avoided tax on any payments over £189,000 found in a Monaco account.