The Hong Kong businessman formerly owned the club in 2010-11 and is personally owed about £19m.
But unless the club's players, both past and present, compromise on how much they are owed and paid, then Pompey could go out of business.
"We've got the future of the club to think of and the employment opportunities that brings - not just for players but for supporters and the club," said Taylor.
"It is not unlike a situation I had to deal with way back in 1980 when I was first in the job with the PFA. Bristol City went out of the top flight and had a lot of their players signed to 10-year contracts and financially they had a big problem as a result.
"Some players will need to leave the club but it is our job to make sure they have a satisfactory compromise agreement in place bearing in mind the money they have already deferred and the money they will lose in the future."
Taylor added: "The position of the PFA is to look after its members as best we can but bearing in mind we have to deal with reality, and the reality of the situation is the future of Portsmouth Football Club is a very serious situation.
"We don't want a situation where someone goes out of business and then everyone loses. From that extent, we have to talk to the players and bring home the reality to achieve a settlement."
This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.