Share Transfers Agreed/Cooling off period

[matty_f]

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Inevitable wage cuts ahead for Hearts.............if they make it that far.

http://www.scotsman.com/sport/footba...3-5m-1-2618700

HEARTS intend to reduce their annual wage budget to £3.5million by next season, taking it down to its lowest level since Vladimir Romanov gained control.

The last set of club 
accounts showed wages at £8m for the period to June 2011 and directors want those costs cut by more than half in time for next summer.
The Evening News has learned that Hearts’ current wage bill sits around the £5m mark having been dramatically reduced since the last set of accounts was released. A number of high-earning players have left, allowing the club to operate with a smaller number of senior players.

The Tynecastle board want wages further reduced to £3.5m by the start of next season as they return to a structure similar to the one used before Romanov took control in 2005. The £3.5m figure is seen as sustainable if the club is to operate efficiently without aid from its parent company, Ukio Bankas Investment Group. As such, a number of Hearts’ current high earners in the final year of their contracts will either have to accept a reduced pay or leave in search of pastures new. Amongst those whose deals expire next June are captain Marius Zaliukas, defender Andy Webster and winger Andy Driver. A total of 14 players are out of contract next summer and Hearts are prepared to let some deals expire without offering a renewal. Those given a chance to re-sign will be offered a salary which fits in with the new budget.

Hearts have held talks with Australian internationalist 
defender Ryan McGowan, who is one of the players in the final year of his contract. To date there has been no agreement over an extension.

Did their last accounts not show that their operating costs were still more than their turnover?

If that was the case, even getting the wages down to zero would still see them losing money.

[ScottB]

So, for the layman, if they fail to turn up at court and cough up the PAYE / VAT that they owe by the end of the week, the Rev will liquidate them?

Any indication of how much it would be?


Surely even if they do manage to pay this bill, that'll wipe out the money for the wages and perhaps all of what they've collected from the share issue? I can see this share issue thing just carrying right on until they eventually collapse!

[matty_f]

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Think there is also punishment if you fail to report it to the SPL ......... double whammy ........ Sanctions time!!

Well, I hope someone's pointed this out to the beaks at the SFA!

[CentreLine]

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In layman's terms, they haven't paid their PAYE/VAT. They have until the 14th to defend the action, otherwise the Court will approve the application and order their liquidation.

Does the 8 days start from 1st November, when the petition was lodged, or from yesterday when it was published in the Gazette?

[CentreLine]

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I'm still laughing at 'hearts players and manager buy shares'
http://www.heartsfc.co.uk/articles/2...241384_2972960

"We'll pay your salary if you give us it straight back"

What does "HYDC" stand for? Is it Help Your Dying Club?

[cabbageandribs1875]

Help
Yam
Debt
Contributions

[Jack]

Just a thought.

Mad Vlad wrings the very last drop of sap from the yams, robbos the kiddies Christmas sack – and then buggers off. I think we can be at least a tad hopeful this is his plan.

Just how will these miserable yams then raise the money to phoenix their club?

[Part/Time Supporter]

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Does the 8 days start from 1st November, when the petition was lodged, or from yesterday when it was published in the Gazette?

The latter. Other creditors wouldn't be aware of the petition until it was published in the Gazette.

[WarringtonHibee]

@STVNews: Hearts face winding up order from HMRC over unpaid tax bill http://bit.ly/VSPA0n

[Treadstone]

Had a look at one of the Yakback threads stopped reading after :

"Assuming the valuation of Tynie is around £17m...."

[Hibs07p]

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What does "HYDC" stand for? Is it Help Your Dying Club?

Hey
You
Dumb
Cants

[Sergey]

I must admit that I'm getting slightly tumescent in my nether regions right now.

[matty_f]

Right, I know we're all finding this funny, but let's think about this for a moment. We should be doing more to save Hearts.

For a start, we'll lose the derby. Also, how would we feel if Edinburgh lost it's proud Scottish Cup record just like that? Imagine the embarrassment of our friends and neighbours who are Hearts fans if their team goes pop

Come on folks buy some shares.

Save Hearts!

[H18sry]

http://local.stv.tv/edinburgh/198880...paid-tax-bill/ Heart of Midlothian FC faces a winding up order from HM Revenue and Customs over an unpaid tax bill.

The tax authority presented a petition to the Court of Session in Edinburgh to place the SPL club into liquidation earlier this month.

It is understood that the Tynecastle club is facing the action from HMRC over unpaid PAYE and National Insurance dating back several months, which is separate from their ongoing troubles with the tax authority.

The latest dispute with the tax authority comes as Hearts are challenging a £1.75m bill at the First Tier Tax Tribunal relating to players loaned to the club by Lithuanian club FBK Kaunas, which is also owned by Vladimir Romanov.

HMRC presented the petition to the court on November 1 and Hearts have eight days to respond starting from this Tuesday, when the notice of the winding up order was published in the Edinburgh Gazette.

Hearts recently launched a fans’ share issue for a 10% stake in the club, which the board denies would be used to raise around £1.79m in order to pay off its tax debt.

In January, HMRC lodged a separate winding up order against Hearts with the Court of Session, which resulted in the club paying off another tax bill.

The tax authority also took similar actions in November and December last year.

[Part/Time Supporter]

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So, for the layman, if they fail to turn up at court and cough up the PAYE / VAT that they owe by the end of the week, the Rev will liquidate them?

Any indication of how much it would be?


Surely even if they do manage to pay this bill, that'll wipe out the money for the wages and perhaps all of what they've collected from the share issue? I can see this share issue thing just carrying right on until they eventually collapse!

Complete guesswork follows:

STV is claiming that there is "several months" of unpaid PAYE. I guess that their PAYE bill will be about 40% of their total wage bill. Assuming the report of a £5M wage bill this season is accurate, 40% x £5M x (say) 3 months would be £600K.

[Caversham Green]

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Did their last accounts not show that their operating costs were still more than their turnover?

If that was the case, even getting the wages down to zero would still see them losing money.

Correct. Turnover was £6.915m, total costs excluding wages was £7.174m.

To be fair the other costs include the write-off of the megastand costs of £1.383m which was a one-off, so that would leave them with a wages budget of £1.124m if they want to break even.

[Mikey]

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Think there is also punishment if you fail to report it to the SPL ......... double whammy ........ Sanctions time!!

Absolutely spot on. If the SPL didn't know about this they should batter them.

[1two]

"a consortium of players led by Andrew Webster and Ryan Stevenson approached senior officials at the club and informed them that they wanted to purchase shares and help the club in its hour of need."

Ryan ****ing Stevenson?
Haha, aye, very good

[YehButNoBut]

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http://local.stv.tv/edinburgh/198880...paid-tax-bill/ Heart of Midlothian FC faces a winding up order from HM Revenue and Customs over an unpaid tax bill.

The tax authority presented a petition to the Court of Session in Edinburgh to place the SPL club into liquidation earlier this month.

It is understood that the Tynecastle club is facing the action from HMRC over unpaid PAYE and National Insurance dating back several months, which is separate from their ongoing troubles with the tax authority.

The latest dispute with the tax authority comes as Hearts are challenging a £1.75m bill at the First Tier Tax Tribunal relating to players loaned to the club by Lithuanian club FBK Kaunas, which is also owned by Vladimir Romanov.

HMRC presented the petition to the court on November 1 and Hearts have eight days to respond starting from this Tuesday, when the notice of the winding up order was published in the Edinburgh Gazette.

Hearts recently launched a fans’ share issue for a 10% stake in the club, which the board denies would be used to raise around £1.79m in order to pay off its tax debt.

In January, HMRC lodged a separate winding up order against Hearts with the Court of Session, which resulted in the club paying off another tax bill.

The tax authority also took similar actions in November and December last year.

So this is an extra bill from HMRC on top of the £1.79 million they claim is due on top of the wage bill to be paid in 10 days with no income coming in via the gate before then.

Doesn't sound good for them does it.

[bingo70]

Is romanov not likely to pay these tax bills so he can keep control of what happens with the debts that are due to him?

[Mikey]

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Is romanov not likely to pay these tax bills so he can keep control of what happens with the debts that are due to him?

He always has in the past and that's why they're still here. The difference this time is that he's said quite clearly that he won't. I guess we'll see.............

[Hibee87]

So they are due to pay x amount 2 days before the players are due their next pay cheque?



tripple sanctions coming the yambolinos way I suspect. Can only ampount to an indifinate transfer embargo AND a points deduction. not paying tax, not telling the sfa/spl about not paying tax and poss the wages for a third month in a row.

[matty_f]

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"a consortium of players led by Andrew Webster and Ryan Stevenson approached senior officials at the club and informed them that they wanted to purchase shares and help the club in its hour of need."

Ryan ****ing Stevenson?
Haha, aye, very good

Is this Webster having a pang of conscience after he stiffed them to get his move to Rangers?

[Peevemor]

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He always has in the past and that's why they're still here. The difference this time is that he's said quite clearly that he won't. I guess we'll see.............

Maybe he can't?

[green glory]

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So they are due to pay x amount 2 days before the players are due their next pay cheque?



tripple sanctions coming the yambolinos way I suspect. Can only ampount to an indifinate transfer embargo AND a points deduction. not paying tax, not telling the sfa/spl about not paying tax and poss the wages for a third month in a row.

I think transfer embargoes and point deductions are the least if their worries. Like you say this has to be sorted by Wednesday next week AND they have to pay the wages on Friday which I find it unlikely they can afford that on it's own.

Oh, and if course they might lose the tax case which is being heard this week.

WELCOME TO JAMBOGEDDON!

[Off the bar]

Wow they are triple f-ed this time, the tax man is banging them from 2 sides and the wages due soon! This is it, without a serious injection of cash and I mean a serious injection of cash 4,5,6 million they're gone by Xmas! Maybe even before we might even get a by through to the next round of the cup

[cabbageandribs1875]

Debt Debt glorious Debt

[robinp]

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I think transfer embargoes and point deductions are the least if their worries. Like you say this has to be sorted by Wednesday next week AND they have to pay the wages on Friday which I find it unlikely they can afford that on it's own.

Oh, and if course they might lose the tax case which is being heard this week.

WELCOME TO JAMBOGEDDON!

Well if the figures estimated on here are anywhere near accurate, £600k tax/NI/VAT for the last quarter, and possibly 1 month's wages (based on the STV report (5mill divided by 12)) £400k, I wonder where the necessary £1m+ is going to come from. I bet Robbo's rally cry will help.....

[Caversham Green]

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Is romanov not likely to pay these tax bills so he can keep control of what happens with the debts that are due to him?

It's what I was saying about mismanagement. If they have the ability to pay either through Mr Romanov or other means, they should have moved heaven and earth to do so before a WUP was served, because this can only damage the share issue - in other circumstances I would think it would have destroyed it. If they do manage to pay it now they've either made another almighty mess of the whole thing or they're using the proceeds of the share issue to pay a long outstanding tax bill - and that was most definitely not the stated purpose of the issue.

If Mr Romanov has decided to liquidate he would be better not paying this bill because his securities mean that all the proceeds of liquidation (excluding fees) would go to UBIG, so payment of the bill would be a payment to nothing.

[Craig_in_Prague]

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Wow they are triple f-ed this time, the tax man is banging them from 2 sides and the wages due soon! This is it, without a serious injection of cash and I mean a serious injection of cash 4,5,6 million they're gone by Xmas! Maybe even before we might even get a by through to the next round of the cup

I'll take this over any small 'revenge' on the pitch!

Wouldn't May feel much better, if they went bust before playing them in the 1st match of same competition, merely 6 months later.

The future is bright, the future is green and white.
GGTTH