Share Transfers Agreed/Cooling off period

[Kaiser1962]

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It has a security against it for more than its worth, I.e. they could sell it and see no cash, but then have to pay someone rent!

The merricks are utterly clueless in this area. Bordering on stupidity.

[Viva_Palmeiras]

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This piece says everything that needs to be said.....

http://www.scotsman.com/news/andrew-...arts-1-2968753


"Hearts have been a financial basket case for close on a decade and really, until this season, there has been no serious attempt to seek treatment or take the necessary medicine. Each one of the Vladimir Romanov seasons, the wages-to-turnover ratio has sat at more than 100 per cent – almost double what financial analysts agree is a level that allows for running a football club in sustainable fashion..."

Excellent and thanks for not posting a comment so I could beat Kiwi Doug to post first.

[Treadstone]

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This piece says everything that needs to be said.....

http://www.scotsman.com/news/andrew-...arts-1-2968753


"Hearts have been a financial basket case for close on a decade and really, until this season, there has been no serious attempt to seek treatment or take the necessary medicine. Each one of the Vladimir Romanov seasons, the wages-to-turnover ratio has sat at more than 100 per cent – almost double what financial analysts agree is a level that allows for running a football club in sustainable fashion..."

I'd say two decades. Whalearse sold HoMFC in 1994 and debt was £4m+ at that time that would have been more than turnover. Their debt has only ever been managed and never addressed.

[#FromTheCapital]

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This piece says everything that needs to be said.....

http://www.scotsman.com/news/andrew-...arts-1-2968753


"Hearts have been a financial basket case for close on a decade and really, until this season, there has been no serious attempt to seek treatment or take the necessary medicine. Each one of the Vladimir Romanov seasons, the wages-to-turnover ratio has sat at more than 100 per cent – almost double what financial analysts agree is a level that allows for running a football club in sustainable fashion..."

That article is spot on. Tells it exactly as it is, they really have nobody to blame but themselves.

[greenginger]

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Shouldn't have been policing games until they'd paid GG, simple as that. One for the media that one. Senior officers need to be accountable and explain why they've been policing for free (essentially). I'll bet Hibernian are up to date.

The outstanding amount due to Scottish Police at 30 th May was probably for their May fixtures and not due for payment until June.
Having said that, pretty sure it won't be paid this month !

[Treadstone]

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That article is spot on. Tells it exactly as it is, they really have nobody to blame but themselves.

But they won't .

[Hibzbollah]

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I'd say two decades. Whalearse sold HoMFC in 1994 and debt was £4m+ at that time that would have been more than turnover. Their debt has only ever been managed and never addressed.

I think it's worse than that. The debt has been compounded. Previously only the ground was threatened. Romanov has speculated over and above this to now threaten the very clubs existence. It's a perfect meltdown built on arrogance, ignorance, hubris, greed and delusion...

[brog]

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I thought it was a bit of a confused article, especially the last paragraph which seems to make no sense at all



http://www.heraldscotland.com/sport/...earts.21304917

The only really new info is re the VAT due on season tickets & for once in this case I think they've overstated the problem. Being generous, 7,000 at £400 = £2.8mm, 20% of that = £560,000. Mind you when you've resorted to looking down the back of the sofa & your Dadsgolf bag for loose change then I suppose that's a sizeable problem!

[Part/Time Supporter]

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The only really new info is re the VAT due on season tickets & for once in this case I think they've overstated the problem. Being generous, 7,000 at £400 = £2.8mm, 20% of that = £560,000. Mind you when you've resorted to looking down the back of the sofa & your Dadsgolf bag for loose change then I suppose that's a sizeable problem!

It would be 1/6 of the total because football sales are made gross of VAT; the fan pays (say) £300 for a season ticket, the club then pays £50 of that* to HMRC when they account for their VAT. Effectively the sale from the club's point of view is £250 + 20% (£50) of VAT.

*less any input VAT that can be reclaimed. In the case of a football club that will be minimal because the vast majority of their spending is on items without VAT (ie staff and player wages).

The figure in the Herald is absurdly high; £1M would be more akin to their VAT liability for a full year. At the very worst they would have to pay for a quarter, or they may even be on the monthly payments on account system.

[sidneyhibbie]

A Blind man with a stick can see it they are ****ed

[#FromTheCapital]

Close the thread they're saved. Fat toothless lump who hasn't kicked a ball for years Kevin Kyle wants to help them

Health warning: Please don't click on the link if you are squeamish.


http://www.thescottishsun.co.uk/scot...t-me-help.html

[Iain G]

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Recommended reading - a decent assessment of things from the Scotsman, but another unattributed story. Can their journos only put their name to the fantasy stories that tell the Yams what they want to hear?

You know if it hadn't been for this Iain MacLeod bloke and his mates forcing the Pieman out they would never be in this situation that they are in just now; if they had sold Tynecastle at the height of the property boom they would have cleared their then debt levels and that could have been a springboard for them to push on.

Instead 9 years later they have brought this on themselves, with open arms, they opened the door for Romanov and now they are paying for their over reaction and folly with the very fabric of the club they thought they were saving.

When it looked like Hibs were heading to Straiton we got it together to say no and the board got into dialogue with the fanbase and worked out how we could stay at ER; instead, when faced with the same dilema, the Hearts support threw chairs and threatened the family, business and home of their owner til they got their way like a bunch of spoilt schoolchildren upset at not getting their favourite pudding for dinner.

But for the determined and positive actions of the Hibs support, we could have been at a souless IKEA stadium instead of at the fully restored Easter Road.

[macca70]

£1 million due for VAT

They are well and truly Donald Ducked

http://www.heraldscotland.com/mobile...earts.21304917

What the hell are that club up to, surely when a season ticket is sold they know to put the VAT money to the side for the taxman.

The lack of any planning/organisation is unbelievable.

Any injection of half a million now from a rich fan just keeps there life support machine running for a couple of weeks.

I still can't understand why there fans aren't all down at Tynie, dragging fedofeetass or whatever his name is out and booting him back to Lithuania and insisting that someone out with the Lithuanian regime is installed to handle and oversee this current shambles.

[Www1875hfc]

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£1 million due for VAT

They are well and truly Donald Ducked

http://www.heraldscotland.com/mobile...earts.21304917

What the hell are that club up to, surely when a season ticket is sold they know to put the VAT money to the side for the taxman.

The lack of any planning/organisation is unbelievable.

Any injection of half a million now from a rich fan just keeps there life support machine running for a couple of weeks.

I still can't understand why there fans aren't all down at Tynie, dragging fedofeetass or whatever his name is out and booting him back to Lithuania and insisting that someone out with the Lithuanian regime is installed to handle and oversee this current shambles.

Silence of the Yams.

[macca70]

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£1 million due for VAT

They are well and truly Donald Ducked

http://www.heraldscotland.com/mobile...earts.21304917

What the hell are that club up to, surely when a season ticket is sold they know to put the VAT money to the side for the taxman.

The lack of any planning/organisation is unbelievable.

Any injection of half a million now from a rich fan just keeps there life support machine running for a couple of weeks.

I still can't understand why there fans aren't all down at Tynie, dragging fedofeetass or whatever his name is out and booting him back to Lithuania and insisting that someone out with the Lithuanian regime is installed to handle and oversee this current shambles.

Here's today's article from The Herald:

Hearts are on the brink, both of crisis and salvation.

The situation at the Tynecastle club grows graver by the day, and it seems unlikely that Heart of Midlothian plc will avoid falling into administration. Yet that turn of events may be necessary for a rescue bid to succeed. That dilemma is being faced by all of the potential buyers of the company that owns the club, and it appears certain that further distress must be suffered before Hearts can be saved.

Half of the £104,000 bill owed to Her Majesty's Revenue and Customs has been paid, but a winding-up order will be served if the remaining balance is not met. The salary bill was not paid in full on Friday, leading to a registration embargo automatically being implemented by the Scottish Premier League. That in itself would be a minor consideration, since a club in financial difficulties will not be on a recruitment drive, but the board have effectively invited offers for all of their players and the squad could be stripped of its best talent. With season ticket sales having fallen, Hearts need £500,000 just to survive until the beginning of the season.

These are the details, but it is the bigger picture that is so debilitating. A VAT bill from the season tickets already sold will need to be paid before the end of the month and could be more than £1m, while a further PAYE bill will be due at the same time. With all of the season ticket revenue already committed, Hearts face critical cash flow problems. However, a controlling stake cannot be purchased at this time. BBC Scotland reported yesterday that there are six potential buyers monitoring events, although those close to the situation believe that the Foundation of Hearts – a coalition of supporters groups – is best placed to make an offer to save the club. Members of the FoH board addressed fans on Friday night, and afterwards Ian Murray, the independent chair and Edinburgh South Labour MP, admitted that administration might be necessary to solve Hearts' problems.

FoH have generated more than 4000 pledges to their website, which crashed at one stage last week due to the sheer volume of visitors, and they are now beginning the process of turning those pledges into cash, as well as seeking new backers amongst the fans. Members of the Edinburgh business community, including Ann Budge, the multi-millionaire who earned her fortune in IT, will also provide financial support, and the intention is to lodge a bid by July 4. Of the remaining parties reportedly interested in buying the club, three are from North America, one is based in London and the other has already been revealed as a consortium of Scandinavia-based businessmen. The latter have spoken with FoH about a joint bid, and further talks will clarify their intentions.

Although Hearts need a quick solution, nobody can move any more swiftly. Ukio Bankas hold 29.9% of the club, as well as ownership of Tynecastle Stadium as security against a £15m debt. The bank is now insolvent, and the administrator stressed last week that the intention is to sell the shares as part of maintaining Hearts as a going concern. A further 50% of shares is held by UBIG, the investment group which has yet to be formally placed into administration by the Lithuanian court. Although essentially now just a shell company, its assets have been frozen and the 50% shareholding cannot yet be sold.

Once UBIG, who are owed £10m by Hearts, are formally declared insolvent, it is likely the Scottish Premier League will rule that the Tynecastle club are technically in administration. This would cause the team to begin next season with a 15-point deficit, while the new Scottish Professional Football League rulebook will contain several scenarios if HFC plc were to eventually be liquidated.

"We have a rulebook, and it covers all eventualities," said Neil Doncaster, the SPL chief executive. "In the event that anything happens to any member clubs of that new league after June 27, it will be up to the new board and the new rulebook to determine what happens."

Administration would at least clarify the situation for potential new owners, and the insolvency process would strip Hearts of their debt. The intention of FoH is to buy 51% of the club to enable fan ownership and they are willing to work alongside other potential investors. Ian Murray's role is crucial, since his status as an independent figure has helped align fan groups, while he is also widely respected by key individuals in Lithuania.

The administrators of Ukio Bankas want Hearts to remain as a solvent business, having agreed terms on interest payments on the £15m loan until 2015, but they are also likely to work in conjunction with any administrators appointed to UBIG to sell the Hearts shares as a single package. The situation is complicated, but a rescue plan is possible. It will require significant funds, although the cash flow problems can be addressed within 12 to 18 months, but more setbacks will also have to be overcome.

[BSEJVT]

I don't think administration is a viable option as they have nothing for the administrators to use to fund them through it.

Seems to me latest fire sale is final attempt to raise the funds for this and retain a small element of control of the process.

If this isn't successful and it won't be without a white knight being prepared to write off their cash injection then it will be a very quick route to liquidation.

Whilst in the end I want them to be obliterated, I am quite happy that it rolls on a bit longer and the flumps get fleeced for a good few quid more and suffer the agony of their raised hopes being dashed at the last minute.

Every £1 they chuck in now is a £1 they don't have to give to any sevco type new hearts, so a bit of patience is required to ensure they are parted from as much cash as possible by the current regime.

[Jack]

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£1 million due for VAT

They are well and truly Donald Ducked

http://www.heraldscotland.com/mobile...earts.21304917

What the hell are that club up to, surely when a season ticket is sold they know to put the VAT money to the side for the taxman.

The lack of any planning/organisation is unbelievable.

Any injection of half a million now from a rich fan just keeps there life support machine running for a couple of weeks.

I still can't understand why there fans aren't all down at Tynie, dragging fedofeetass or whatever his name is out and booting him back to Lithuania and insisting that someone out with the Lithuanian regime is installed to handle and oversee this current shambles.

They will have used the VAT money to pay the PAYE money which they used to pay the ...

[jacomo]

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Excellent and thanks for not posting a comment so I could beat Kiwi Doug to post first.

Nice comment! Obviously, don't expect any intelligent debate - the usual Yammentators on the Scotsman site will either ignore this piece or descend into insults very quickly. Maybe it really is all the fault of the media, for not holding Romanov to account?

[Spike Mandela]

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http://m.scotsman.com/sport/football...ce=twitterfeed

Simply an open letter to Ann Budge and other Hearts mug. We've seen these begging letters before. Mention that Hearts will go bust and the reluctant punters will stump up.

[steviehibsleith]

Interesting article in Scotsman saying 10 days to administration. Point i liked was 150 staff, 26 players with rest being coaches etc. All you ever hear is we have reduced wage bill by showing the player reductions so we now can afford bigger salaries for new players guess they didnt realise the wage bill encompasses everyone else.

[jacomo]

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£1 million due for VAT

They are well and truly Donald Ducked

http://www.heraldscotland.com/mobile...earts.21304917

What the hell are that club up to, surely when a season ticket is sold they know to put the VAT money to the side for the taxman.

The lack of any planning/organisation is unbelievable.

Any injection of half a million now from a rich fan just keeps there life support machine running for a couple of weeks.

I still can't understand why there fans aren't all down at Tynie, dragging fedofeetass or whatever his name is out and booting him back to Lithuania and insisting that someone out with the Lithuanian regime is installed to handle and oversee this current shambles.

Very good post.

Obviously JK Rowling has the means to put in £500k if she were so minded, but from what I know of wealthy people - especially self-made wealthy people - they don't like wasting their cash. It doesn't sound like even that much money will be enough.

[Big Ed]

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Although Hearts need a quick solution, nobody can move any more swiftly. Ukio Bankas hold 29.9% of the club, as well as ownership of Tynecastle Stadium as security against a £15m debt. The bank is now insolvent, and the administrator stressed last week that the intention is to sell the shares as part of maintaining Hearts as a going concern. A further 50% of shares is held by UBIG, the investment group which has yet to be formally placed into administration by the Lithuanian court. Although essentially now just a shell company, its assets have been frozen and the 50% shareholding cannot yet be sold.

Once UBIG, who are owed £10m by Hearts, are formally declared insolvent, it is likely the Scottish Premier League will rule that the Tynecastle club are technically in administration. This would cause the team to begin next season with a 15-point deficit, while the new Scottish Professional Football League rulebook will contain several scenarios if HFC plc were to eventually be liquidated.

The article seems to suggest that it is only a matter of time before the Lithuanian authorities undertake any insolvency action against UBIG.

Given that UBIG’s problems go further than being owed £10,000,000 by Hearts; surely this is not a given?

If Hearts cannot be sold because UBIG's assets are frozen and they are reportedly losing £10,000 per week; they simply cannot continue to exist.

[green day]

So.......wages up to £9.4M in the year they pumped us in the cup final.

According to these bams in FOH total wages next season will be £1.5M !!!

And yet some of these ****ing ***** still say they were not cheating.

Utter, utter *******s the lot of them. They cheated not onlu hibs but every other club on the way to that cup final (and arguably the gretna one too).

I am as ****ing angry as I ever have been about this after reading that article in scotsman.

I hope they die, and when the pink wongadome gets bulldozed I will be there with my hibs top and a bottle of champagne.

Last word - *****

[Leishy1995]

My old man had a heart attack today, successful operation, told him about the Scotsman article and he smiled and said he'd be out for the party.

[grunt]

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This piece says everything that needs to be said.....

http://www.scotsman.com/news/andrew-...arts-1-2968753

This is a very good article, thanks for posting. I especially liked this summary:

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Hearts will say they required to balance cutting costs with an ability to sell season tickets but it was more arrogance and conceit that appeared to underpin a ruinous business strategy. They refused to listen; refused to change course; always thought they knew better. It is extraordinary that in 2009-10 and 2010-11 they posted trading losses of £5m and £6m. In effect, the precise sums by which they were overspending on wages. No-one with any clout inside the club was willing, or able, to join the dots, and now, when they finally have, the only picture that forms is a horribly bleak one.

[Kaiser1962]

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They will have used the VAT money to pay the PAYE money which they used to pay the ...

I suspect this is what they have been doing to get to the end of the season. Deferring payments here and there or moving major sales from one month to the next to the next again in order to defer the VAT payments and get to the end of the season when the ST money would come in and then they could pay everything and start again.

The end of the season is here and the ST money, which was spent before it came in, is gone. They are potless.

After over a hundred years of being run well they pushed the boat out over the last 25 to get one up on us and its killed them.

[woody0-7]

Am I right to think that if hearts don't pay their players nextt month then the players can start looking for new clubs as their contracts won't be valid any longer? (If they're still a club then that is)

[Jack Hackett]

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Close the thread they're saved. Fat toothless lump who hasn't kicked a ball for years Kevin Kyle wants to help them

Health warning: Please don't click on the link if you are squeamish.


http://www.thescottishsun.co.uk/scot...t-me-help.html

It's an oft used phrase, but that was a genuine 'spit your tea oot' moment

....you also missed out 'I haven't got a job and am totally desperate' from your description above

[PapillonVert]

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There is one vital thing that has been constant for the last few months and could very well end up being the most important factor. All UBIGS assets are frozen because it's suspected Vlad has been up to, shall we say "significant dodginess". That decision won't be lightly if the lithuanian authorities think they play a significant part in any investigation.

Exactly, you just wonder what can of worms (or how many cans of worms!) is going to open up once an independent administrator/liquidator gets hold of the books.

Every time a 3rd party has made overtures about buying or investing in HMFC in the past, the management has been adept at hiding the financial information from them.

Nothing would surprise me about this lot. The wilfully blind "Big Teamers" are about to have their eyes opened, I suspect, and what they will have to see won't be pretty!

[YehButNoBut]

Even Jim Jefferies admits they cheated to win 2 cups. :fenlon

http://www.thescottishsun.co.uk/scot...-promises.html

HEARTS legend Jim Jefferies believes trying to bankroll Vladimir Romanov’s wild promises wrecked the Jambos.

Jefferies fears for the club he captained with distinction and who sacked him in his second spell as boss nearly two years ago.

The Dunfermline boss, 62, is in no doubt Hearts’ downfall started in 2005 when Romanov arrived with far-fetched promises such as winning the Champions League inside 10 years and recruiting World Cup players.

And their troubles have nothing to do with the Jambos supporters.

Jefferies said: “I can’t believe the suggestions that the supporters are to blame. The supporters have been fantastic, they’ve probably kept them afloat, so I don’t know where that has come from.

“There’s only one reason they’re in this position, mis-management and the money wasted on trying to chase certain promises.

“It’s there for all clubs if someone with a lot of money comes in, you either make a success of it or throw it away with bad decisions — and there’s been many of them.

“When you keep throwing money at it there’s going to come a time when it’s going to run out and that’s what’s happened now.

“I’m talking about the football side, because it would be wrong for me to comment on any other part of the club, because I don’t know how they operate or what effect it had on running Hearts.

“But obviously a lot of money was thrown at Hearts. There’s a couple of cup final successes but a lot of the time it’s come at a cost — and that cost cannot be met.

“You see what happened to Rangers and you just hope for the best for Hearts.

“It looks like they will be losing players, although I think clubs will wait and see how things pan out. They’re never going to pay money for players they might get for nothing further down the line.”