Hearts’ debt has risen to £28.4 million in the last year.
Club shareholders have been notified of the club’s financial state and the debt figure is obviously the most worthy of note…..or should that be concern? The club posted losses of £5.2 million for the year to the end of July 2006 and salary costs have doubled to hit the £10 million mark, which is pretty astronomical I’m sure you’ll agree.
When you consider that the club had a record year in terms of revenue then it really does show you just how much spending has gone on with regards to transfer fees and players’ wages…..and God knows what else!
Revenue was greater than £10 million for the first time in Hearts’ history, a nod to the significant increase in attendances and also the knock-on effects that had on club merchandise, etc. The profile of the club is now also significantly higher, which has generated a lot more interest.
Hearts’ performances last season saw them finishing second in the SPL and winning the Scottish Cup, which also contributed to the increase in revenue, as well as the sale of Rudi Skacel to Southampton for over £1 million.
Those who think that Romanov transferring the debt to his bank meant that the club was effectively debt-free were always kidding themselves. However when the club wrote off £2million of that against another of Romanov’s companies, it did look as though this could potentially be the way that he’d play it until the whole debt had been wiped out.
But the feeling now is that their plan is to reduce the debt by continual qualification for the Champions League, which is by no means a certainty for any given season, never mind the several seasons we would need to do this to wipe out nearly £30 million!
Am I the only one more than a tad concerned about all of this? For the amount of money spent I would be looking for the current Hearts management and playing staff to be considerably more capable than what we have just now. So much money has been wasted on mercenaries selected by people who know very little about football……and paying settlements to those who know PLENTY about football but were sacked without good reason!
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Without the kind of revenues available from say ECL or EPL status – this is untenable. From memory, the Leeds figure was in this ball park wasn’t it?
The thing is that the debt gives Romanov a very powerful tool. As it is in his bank and he has control over the debt, he can patiently wait it to evaporate through profits. However, if his project with Hearts does not succeed, he can always leave, while the debt will still stay in his bank and in that case Hearts will not only have to pay the debt but the accounting interest as well.
Yes the most concerning thing is exactly the point you make, AirHearts. While VR is in charge it’s ok, but what happens if he leaves? Who can take that on? As for the Leeds debt, Craig I’m not sure. I’d guess that theirs was a lot more considering they spent £12 million on the likes of Fowler and Keane and paid their players a fortune, but they may have gotten some of that back with the Rio Ferdinand sale. Whichever way you look at it, the debt is huge and as you say, pretty much untenable.
Bates inherited debts of £25m in Jan05
Pre-asset stripping the debt was in fact £100M
Seen in this context – it has to be a concern.
Well. we know Ukio Bankas and UBIG will make money… so at least (as bad as this will sound), we can invest in them and in case the Hearts do fall we will have accumulated nice profits… In a way (if it is true that Romanov is at Hearts only and only to do money, which I btw doubt, because I am pretty convinced that he is interested in football, otherwise he wouldnt spend time at Hearts) he is a genius. An evil genius.
should be in the next Bond film then!?
Yes, and it would be called “From Lithuania with Love” or “The Hearts is not Enough”… with no SPECTRE being replaced by UBIG…
He actually does look a bit like a Bond villain doesn’t he? With his son and co as his dumb goons……
That’s more what Dundee’s was FFS! How do they manage it?