Hearts about to go?

Francie Barrett

http://www.bbc.co.uk/sport/0/football/22888346

Hearts will listen to offers for their entire first-team squad in an effort to keep the club afloat.

The Edinburgh club said it was the result of other revenue "drying up", with season ticket sales about half what they were last year at this time.

Managing director David Southern told BBC Scotland it is doubtful they will be able to pay players' wages that are due at the end of this week.

Hearts need to raise a "significant six-figure sum" before the weekend.

The club faces uncertainty with a debt of £25m - £10m of which is due to their parent company, UBIG, which is claiming insolvency.

And the club owes £15m to Ukio Bankas, which has been declared bankrupt .

Hearts' majority shareholder, Vladimir Romanov, who claims to have spent £60m on the club, is seeking a buyer for the Scottish Premier League outfit.

In a statement, the club said: "It is now crucial to the football club that we find a solution to bring in enough finance to allow us to trade into the new season when normal trading can resume with the benefit of SPL and game-related income streams.

“The board had planned to bring income in through the sale of players while considering the financial forecast for next season, but now this will need to happen much earlier in order to preserve the business”

Hearts statement

"The payments to HMRC and players/staff salaries are the most important issues in our focus these days where very limited time remains available to the club.

"However, given that the revenues for season tickets has dried up and no other realistic income is available quickly enough, the club will consider offers for the players of the current squad, including the most promising talent in order for the most necessary and important payments to be made."

Hearts have had assurances from the administrator handling Ukio's liquidation that he wishes to keep the football club as a going concern.

However, the club says the resulting uncertainty has led to the club's main source of revenue in the close season - the sale of season tickets - drying up, with around 6,500 being sold so far, leading to problems in paying debts owed to HM Revenue and Customs .

"Due to recent unexpected circumstances away from Tynecastle, the club is now experiencing a shortfall in funding," said the club statement.

"This shortfall, due to recent uncertainty, has created a significant noticeable blockage in projected revenue streams for the club.

"While this hesitation is understandable, it is unwittingly damaging the club's current efforts to improve its financial situation, including current payments to HMRC and raising doubts over future payments to players and staff.

"The board had planned to bring income in through the sale of players while considering the financial forecast for next season, but now this will need to happen much earlier in order to preserve the business."

Hearts say the financial problems have resulted from their worst league finish in more than 30 years, the absence of Rangers from the SPL and increased costs relating to the Main Stand.

"Provided we can achieve security for the club, it is the view of the board that there is a viable strategy for the change of ownership to a willing buyer or investor," they add.

Doesn't look good for Hearts, or the Scottish league for that matter.

Amirani

Definite contenders for the "Worst-Run Club in Britain" award. It's a tight race between Hearts, Rangers, Portsmouth, Leeds and QPR.

Augmerson

NiallSparky wrote: »

Definite contenders for the "Worst-Run Club in Britain" award. It's a tight race between Hearts, Rangers, Portsmouth, Liverpool and QPR.

Really? Do go on.

thebaz

NiallSparky wrote: »

Definite contenders for the "Worst-Run Club in Britain" award. It's a tight race between Hearts, Rangers, Portsmouth, Liverpool and QPR.

why liverpool ?

I am pie

Can we not have one thread without somehow turning it into a Liverpool/Man U dribblefest. Please try and think even slightly logically about what you are saying.

Hearts have been headed this direction for a long time. It would be a terrible shame if they go under and you have to wonder who else is behind them in the queue in Scotland. Game needs a real revamp and any recent changes have been cosmetic only.

Chucky the tree

You'd need about a single digit IQ to currently consider Liverpool contenders for "Worst run club in Britain".

Amirani

Any Liverpool fan that uses the Superthread would know that I think the opposite, I said so earlier on today. They're one of the best run clubs in England over the past year or 2.

That went according to plan Niall

witnessrenegade

I wonder what's gonna happen to Danny Wilson, signed a per-contract with them to start after his contract expires with Liverpool

Amirani

rarnes1 wrote: »

That went according to plan Niall

You can say that again... :pac:

thebaz

NiallSparky wrote: »

They're one of the best run clubs in England over the past year or 2.

so why say they are one of the worst run clubs in Britain ??

totally confused :eek::eek::eek:

oh, you have now changed it to Leeds

I am pie

witnessrenegade wrote: »

I wonder what's gonna happen to Danny Wilson, signed a per-contract with them to start after his contract expires with Liverpool

Back to Rangers if they'll have him! Wasn't much use as Britain's best/worst run football club.

Hearts can't pay anyone right now it seems.

The_Kew_Tour

If justice is around then it's goodnight jam tart.

Frankie Lee

Farce of a football club for many years now and generally hateful fans. No loss to football imo.

messinkiapina

Liverpool is definitely one of the worst run clubs in football over the last 20 years. To go from being the dominant team in Europe to being a team that can't get into the top 4 took a spectacular series of cock-ups over the years. FSG had no hand in that, of course, and they seem to be decent owners who are running the club well so far.

Skid X

Frankie Lee wrote: »

Farce of a football club for many years now and generally hateful fans. No loss to football imo.

But it could also send Hibs into trouble, if they lose the income from their derby games. Scottish football is fragile enough without any more upheavals.

asdfgh86

As Celine Dion once said, "I believe that the Hearts will go on"

messinkiapina

messinkiapina wrote: »

Liverpool is definitely one of the worst run clubs in football over the last 20 years. To go from being the dominant team in Europe to being a team that can't get into the top 4 took a spectacular series of cock-ups over the years. FSG had no hand in that, of course, and they seem to be decent owners who are running the club well so far.

It still yielded a Champions league, Uefa cup, 2 FA cups and 3 league cups.

Could have been worse.

---

Re Hearts, losing another decent sized club in Scotland surely wouldn't be good for the league.

1967

This has been on the cards for a while they have been living beyond there means for years and now it looks like it is coming back to haunt them,maybe there sponsors wonga will give them a loan

I am pie

I don't understand the glee some people have for Hearts going under. It's obviously bad for the league and for their local rivals.

'Hateful fans' seems a bit much, and certainly they have been run terribly by morons, but that hardly seems fair to the fans, members, players and other employees. Especially those fans that where there before the madman took over.

Rikand

NiallSparky wrote: »

Definite contenders for the "Worst-Run Club in Britain" award. It's a tight race between Hearts, Rangers, Portsmouth, Leeds and QPR.

You have to have present day Blackburn in here surely!






(and I'm a Rovers supporter!)

Vurnon San Benito

Heartbreaking stuff to hear!















:pac:

Frankie Lee

I am pie wrote: »

I don't understand the glee some people have for Hearts going under. It's obviously bad for the league and for their local rivals.

'Hateful fans' seems a bit much, and certainly they have been run terribly by morons, but that hardly seems fair to the fans, members, players and other employees. Especially those fans that where there before the madman took over.

Granted all clubs have an element of scumbag supporters but Hearts fans have a lot based on their singing alone, the famine song etc.

Hibs won't go out of business on the basis of a couple of smaller gate receipts and long term should hopefully be able to grow their support a bit in Edinburgh.

The_Kew_Tour

I am pie wrote: »

I don't understand the glee some people have for Hearts going under. It's obviously bad for the league and for their local rivals.

'Hateful fans' seems a bit much, and certainly they have been run terribly by morons, but that hardly seems fair to the fans, members, players and other employees. Especially those fans that where there before the madman took over.

There is huge differences between Hearts and other situations.

I would have had total sympathy for Hearts fans had they protested and come out and said they were not happy.

Every other club who has been aware and fans have made there feelings known.

But not Hearts. They have done nothing but keep laughing.

They won't have last laugh.

Big differences really.

The_Kew_Tour

"It is inevitable that Hearts will reach the level of Celtic and Rangers." - Vladimir Romanov, November 2004

At least he was half right...

Camac Hibs

I am pie wrote: »

I don't understand the glee some people have for Hearts going under. It's obviously bad for the league and for their local rivals.

'Hateful fans' seems a bit much, and certainly they have been run terribly by morons, but that hardly seems fair to the fans, members, players and other employees. Especially those fans that where there before the madman took over.

I don't actually want them to disappear completely, but its extremely difficult to have any sympathy with the club or many of their fans. They have been living way beyond their means under Romanov, when other clubs in the SPL have been tightening their belts.

The wages they have been paying have been ludicrous. And whats more, they have had significant success on the back of it. A second place finish, two scottish cups, consistently qualifying for Europe, regularly pumping their rivals etc etc. This has also played into the mindset of a large section of the superiority complex of their support - and I dont just means with regards to Hibs.

I feel sorry for those hearts fans who raised concerns about the unsustainable way they have been operating several years ago but until the end of this season many have still regarded Romanov as a hero and the penny has not been dropping.

CSF

Frankie Lee wrote: »

Granted all clubs have an element of scumbag supporters but Hearts fans have a lot based on their singing alone, the famine song etc.

Hibs won't go out of business on the basis of a couple of smaller gate receipts and long term should hopefully be able to grow their support a bit in Edinburgh.

Oh my god that is horrible.

Dempsey

hearts deserve to go to the wall, ran into the ground by an egomaniac and their fans cheering him on all the way. clear evidence that the fit and proper persons test is a shambles along, if craig whyte wasnt enough!

major bill

Horrible club run by horrible people

The sacking of George Burley was shocking just when he was in the middle of breaking up the old firm,

As someone said on skytext the other day

"Perhaps they should have got a loan from Wonga.com, considering they consider it good enough to don their shirt."

Dempsey

Douglas Fraser ‏@BBCDouglasF 1m

Heart of Midlothian FC going into administration in the next 24 hrs. KPMG lined up. Players have been informed: BBC Scotland sport

The inevitable finally happens

15 point deduction next season for them too.

Amirani

Scottish football in a bad auld state at the moment. Can't see any recovery to where it used to be.

Dempsey

NiallSparky wrote: »

Scottish football in a bad auld state at the moment. Can't see any recovery to where it used to be.

This is happening because UBIG Investments & Ūkio Bankas have gone to the wall and Romanov implemented an unsustainable business model at the club. Nothing to do with the current state of Scottish Football.

Amirani

Dempsey wrote: »

This is happening because UBIG Investments & Ūkio Bankas have gone to the wall and Romanov implemented an unsustainable business model at the club. Nothing to do with the current state of Scottish Football.

I was talking in a general sense. This obviously isn't completely unrelated to some of the problems. Revenues are significantly down on what they were a decade or so ago.

Dempsey

NiallSparky wrote: »

I was talking in a general sense. This obviously isn't completely unrelated to some of the problems. Revenues are significantly down on what they were a decade or so ago.

No, its a case of Romanov offsetting Hearts losses using UBIG Investments & Ūkio Bankas. Funding from these two companies dried up months/years ago as they were failing themselves and the club have been limping from one wind up order to the next ever since. The collapse of both companies has had implications for the debt that Hearts owe them and those liquidators are looking to asset strip the club and the club have not got enough money to pay the players wages and/or the current tax bill. The were fúcked for a long time and its nothing to do with the current state of Scottish Football.

You made a sweeping generalization that was wrong and are now continuing to talk out of your hat.

Amirani

Dempsey wrote: »

You made a sweeping generalization that was wrong and are now continuing to talk out of your hat.

So Scottish football isn't in a relatively bad state?

Kirby

Dempsey wrote: »

You made a sweeping generalization that was wrong and are now continuing to talk out of your hat.

No he didn't. He made an accurate statement. Wishing it wasn't true doesn't make it so.

Both financially and in terms of the type of players the league can attract, Scottish football has declined over the last decade. When I was a kid, there was a hell of a lot more money in the game and Celtic and Rangers were spending massive(relatively) amounts of money. Celtic and Rangers monetary demise has a massive effect on the rest of the league.

Celtic's run in Europe last season will have helped a little with the stature but the league is still a long way off where it was. Talk of revamping the structure of Scottish football is an indication of this. There has always been rumblings but it seems like it might actually happen now.

Dempsey

NiallSparky wrote: »

So Scottish football isn't in a relatively bad state?

Kirby wrote: »

No he didn't. He made an accurate statement. Wishing it wasn't true doesn't make it so.

Both financially and in terms of the type of players the league can attract, Scottish football has declined over the last decade. When I was a kid, there was a hell of a lot more money in the game and Celtic and Rangers were spending massive(relatively) amounts of money. Celtic and Rangers monetary demise has a massive effect on the rest of the league.

Celtic's run in Europe last season will have helped a little with the stature but the league is still a long way off where it was. Talk of revamping the structure of Scottish football is an indication of this. There has always been rumblings but it seems like it might actually happen now.

Ye are both clueless, the collapse of the stakeholders is the only cause of their administration, they owe £25m to two foreign companies that are being liquidated. The have a tax bill they cannot pay, the have players they cannot pay. How come the other 11 SPL clubs are solvent so?

Kirby

Dempsey wrote: »

Ye are both clueless, the collapse of the stakeholders is the only cause of their administration

Are we talking about the cause of their administration or the state of Scottish football? It seems you are talking about one and he was talking about another. Scottish football has declined. That's an irrefutable fact. He was correct.

You misread his post and came out in attack mode. Accept that you were in err and stop digging.

mike65

Celtic would exit in a flash if they could make it happen.

Dempsey

Kirby wrote: »

Are we talking about the cause of their administration or the state of Scottish football? It seems you are talking about one and he was talking about another. Scottish football has declined. That's an irrefutable fact. He was correct.

You misread his post and came out in attack mode. Accept that you were in err and stop digging.

You are not reading posts correctly. He claimed that the state of Scottish Football is to blame for Hearts pending administration. Its nothing to do with it and are now both fishing for some sort of saving grace.

I am pie

If good shape = 2 teams from the top division of 12 going under then I´d hate to see bad shape!

Amirani

Dempsey wrote: »

You are not reading posts correctly. He claimed that the state of Scottish Football is to blame for Hearts pending administration. Its nothing to do with it and are now both fishing for some sort of saving grace.

I made no such claim. Can you point out where I said that?

Coillte_Bhoy

Dempsey wrote: »

You are not reading posts correctly. He claimed that the state of Scottish Football is to blame for Hearts pending administration. Its nothing to do with it and are now both fishing for some sort of saving grace.

In fairness he said no such thing. You're completely misrepresenting him

Dempsey

The State of Scottish Football has nothing to do with what is happening to Hearts, its actually irrelevant in their case so why bring it up unless you are trying to connect the two.

I am pie wrote: »

If good shape = 2 teams from the top division of 12 going under then I´d hate to see bad shape!

2 clubs are going under due to gross mismanagement. Similar scenarios happened in the EPL and the same ignorant comments werent bandied about

Coillte_Bhoy

Dempsey wrote: »

The State of Scottish Football has nothing to do with what is happening to Hearts, its actually irrelevant in their case so why bring it up unless you are trying to connect the two.

Dont think he was connecting the two. It's just another mess that does nothing for the state of the Scottish game.

I am pie

Aberdeen about 10m in debt, no plan that I am aware of in place to restructure.

Kilmarnock about 10m in debt (ill advised hotel purchase apparently), no plan in place to restructure.

Dunfermline about 12m in debt and in administration

Hibs about 7m in debt.

All rosey in the garden there alright. Especially with a dimishing revenue stream and little potential for growth.

Jelle1880

Won't be the last one either, unless some clubs turn their business model completely around.

Eirebear

Dempsey, are you Neil Doncaster or Stuart Regan combined?

"nothing to see here, move along now..."

Scottish Football is clearly in a bad way, falling revenue, falling attendances, falling standards.
Wether that is the main reason for Hearts, or Rangers, downfall isn't really the point.

The game is in a very precarious position, and to lose two of it's top clubs in two years will have a knock on effect to the other clubs around them.
Aberdeen, Killie and St. Mirren are all on the edge, with others not far behind them.

Open your eyes, Celtic may be fine as it stands, bit Scottish football is far from it.

Dempsey

Eirebear wrote: »

Dempsey, are you Neil Doncaster or Stuart Regan combined?

"nothing to see here, move along now..."

Scottish Football is clearly in a bad way, falling revenue, falling attendances, falling standards.
Wether that is the main reason for Hearts, or Rangers, downfall isn't really the point.

The game is in a very precarious position, and to lose two of it's top clubs in two years will have a knock on effect to the other clubs around them.
Aberdeen, Killie and St. Mirren are all on the edge, with others not far behind them.

Open your eyes, Celtic may be fine as it stands, bit Scottish football is far from it.

I never claimed that things are rosy, I said that Hearts situation is a direct result of what has happened UBIG Investments & Ūkio Bankas and I'll stand by that. The clubs that are in trouble are so because of gross mismanagement, not because of the state of the game of the collapse of other clubs.

There was stats posted not long ago that show that attendances are not dropping at all despite all that is going on. Easy for ya to ignore that when you are not trying to start a pissing contest with Celtic's attendances.

I am pie

Dempsey wrote: »

I never claimed that things are rosy, I said that Hearts situation is a direct result of what has happened UBIG Investments & Ūkio Bankas and I'll stand by that. The clubs that are in trouble are so because of gross mismanagement, not because of the state of the game of the collapse of other clubs.

There was stats posted not long ago that show that attendances are not dropping at all despite all that is going on. Easy for ya to ignore that when you are not trying to start a pissing contest with Celtic's attendances.

Regardless, revenues are dropping at a time when clubs are in debt.

You are correct, gross mismanagement is the cause of the crisis, but it still doesn't take away from the fact that there is a crisis. I am not sure what ´the state of the game' means to you, but to me it means that a worrying amount of the bigger clubs in Scotland (examples have been provided in the thread) have financials problems which jeopardise their future. As a result it is going to be difficult for any club to attract and retain the best players with a background of failing clubs, no sponsorship for the league and question marks remaining over the actual structure of the SPL.

Celtic are the exception rather than the rule, their problem being that they have surpassed every other Scottish team in terms of quality and size.

You are looking for someone to disagree that Hearts (and I guess Rangers) problems weren't caused by mismanagement, but we all agree they were.