Help Sitemap Home Skip Navigation Contact Us Disability Statement

 
 
Friday, 9th May 2008

Evening News / Sony Centre Reverse Auction

Premium Article !

Your account has been frozen. For your available options click the below button.

Options

Premium Article !

To read this article in full you must have registered and have a Premium Content Subscription with the Edinburgh Evening News site.

Subscribe

Registered Article !

To read this article in full you must be registered with the site.

Sign In
Register

Hearts' debt worries fans



Click on thumbnail to view image
Click on thumbnail to view image
Click on thumbnail to view image
Click on thumbnail to view image
Click on thumbnail to view image

THE Hearts Supporters' Trust today admitted concern over the club's impending financial results, which will be published at the end of the month showing a loss of more than £8million on last year with debt levels peaking at £38m, writes BARRY ANDERSON.
Derek Watson, chairman of the Trust, told the Evening News: "We are always concerned by debt at the club but it's not unexpected. The figures quoted are pretty much what we imagined they would be despite rumours the debt was going to be higher.

"A
n important aspect is that you still have the Craig Gordon transfer money to factor into this amount. Hopefully it's manageable but it's worrying because the figures are too big."

Hearts have so far received £7m of the agreed £9m from Sunderland for Gordon, with the deficit dependant on appearances and Sunderland's ability to avoid relegation from the English Premier League. Details of the goalkeeper's transfer will not be included in the accounts due as they only cover the period to July 31, 2007. Gordon left Tynecastle just over a week later.

The club's AGM will be scheduled for late April, where shareholders are sure to demand answers as to why the debt has risen so steeply from last year's figure of £28.4 million. Hearts' £10m wage bill is not thought to have reduced and planning for Tynecastle's new main stand is understood to have cost around £1million to date. Other causes of the loss are expected to include interest to creditors.





The full article contains 253 words and appears in Edinburgh Evening News newspaper.
Page 1 of 1

  • Last Updated: 21 March 2008 10:33 AM
  • Source: Edinburgh Evening News
  • Location: Edinburgh
  • Related Topics: Heart of Midlothian FC
 
1

Capital,

Near Gorgie 21/03/2008 12:29:49
The good news is that George Foulkes is telling us to be concerned but not panic. That's made me feel a lot better. He goes on to say the club will only have a problem if the bank needs to raise funds but can't find a lender.Again I feel a lot better.
Which set of forum amateur accountants were closest to the 38m figure. A lot of our supporters were predicting improvement and stating that the 40m was a figure that would never be required.
2

M Smith,

21/03/2008 12:35:32
I'm a hearts fan and I'm no worried! If we closed the accounts a few weeks later the result would have been a profit for the first time in years!
3

Hertz Nil,

Where the grass is greener 21/03/2008 13:02:55
#2, Erm, no it wouldn't have. Debt has increased from £28m - £37m, suggesting a loss of £9m+, hence why it had to be funded by increased loans. At best, being very optimistic (or burying my head in the sand), the Gordon sale might have helped Hertz break-even, but unless you have another Gordon sale every year then the picture looks a lot bleaker. The entire current squad probably isn't worth what Gordon was.....
4

Jam Tarts 1874,

On the Rebound 21/03/2008 13:15:26
#1. I have to say that I don't recall anyone predicting an improvement for the period to July 2007. The period to July 2008 will however be much different, but this is obviously not much use to the short-sighted knee-jerkers.

#2. Gordon is not the only player to have departed since July 2007 and Hearts' turnover has increased sharply since July 2007 too. Again you are just another hobo fantasising about Hearts.
5

Hertz Nil,

21/03/2008 13:31:25
#4: Bednar and Gordon are the only ones of value, amounting to a profit of around £10m, at best. They will already have been on the books as an investment, probably of £1m+, therefore not all their transfer fees will be recorded as profit. Plus you bought Larry, and goodness knows how many Lith rejects.
No question that 08 will be a better financial year than 07, but how many more Gordon's/Bednar's are their in the biscuit tin....
6

The Gorgie Boys Are In Town,

21/03/2008 13:45:39
*5*

And at the Flea pit other than Fletcher who has any value....yeah thought so stop talking out your rear end for a change.
7

Newcastle Jambo,

21/03/2008 13:49:21
I'm not a finacial expert but it's really hard to understand how the debt could have risen so much. The only conclusion is that the current owner is reckelessly spending money on salaries which the "club" pays back with high interest to his bank.

That's a great money making scam for Vladamir Romanov but it surely spells the end of HMFC. It was hard to get an investor to take on the debts of around £20m created by Chris Robinson's mismanagement but impossible for any invstors to bail the club out now if Romanov gets bored of his plaything (which it seems clear he already has) because the value of the liabilities (i.e. the debt to Romanov's bank) far exceeds the clubs's assets (i.e. the land at Tynecastle).

It will be very interesting to see where the Craig Gordon fee has gone to. It MUST be used to pay off some of the debt but I strongly suspect that it will somehow vanish while the debt increases.

What Hearts needed 3 years ago was an investor to stabilise the club's finances, pay off the creditors and implement a business plan that stops the losses and the previous regime's model of selling any player that has value rather than building a team. I'm afraid that the model Romanov has implemented has been a total disaster for the club.
8

Jambo83,

West Lothian 21/03/2008 14:27:30
#5 Hertz Nil,

Seriously? Are you retarded???

The investment, or loss, will already be included in the current accounts, so when he is sold this summer it will be 100% profit in the NEXT accounts for year end July 2008 as his loss was already accounted for in the previous year. As was the investment in Gordon, ie wages.

Think before you post!

Crawl back under your rock or back to hibs.net for more interesting accounting points....
9

victorian,

21/03/2008 14:56:32
#8 J83, good intentions mate but they can't be argued with, they know it all, they wont tolerate being questioned about their economic and financial credentials.

10

Santa,

greenland 21/03/2008 15:00:12
#6 Hibs sale of Whittaker and Murphy will be in our accounts for 07/08,but, since we have very little debt to finance and we operate within our income budget further player sales are not a necessity.
Hearts on the other hand will use most of their match day income just to service their debt,requiring player sales just to stand still never mind reduce the debt.
It will be a long hard slog but you will make it eventually.
11

LTYF,

21/03/2008 15:05:52
#8 Jambo 83,

Are you a Vlad sheep???

Have Hearts received the full £9M yet for Gordon?

I dont thinks so!!

Season 07/08 - No European football, no real money from cup runs, dropping crowds (yes your crowds are dropping and it will be interesting to see what the crowds will be if you don't make top 6), money paid out for Kingston, Nade including wages, which will amount to over £2.5M!

The Gordon money is draining away and where I agree that next years accounts will probably not show another £10M loss, which you have had for the last 2 years (Vlad kindly paid of £2M debt in the previous financial year), you will be lucky if you have reduced your current £38M debt!

Oh, and just how much is this new stand going to cost Hearts? Care to place a figure on that question? I bet that Ubig will not finance the whole development, which was costed at £51M, but by the time the thing starts getting built costs will probably have risen, as they always do with these type of projects.
12

victorian,

21/03/2008 15:09:55
#11, it's sometimes a good idea to read up on all available info on things before gobbing off. they have the intention of funding a large part of it by way of 3rd party investors / business partners.

13

LTYF,

21/03/2008 15:29:29
#12,

Hahahahahahaha, soooooo in other words you have no idea!!!

Bye bye yam fud!!!!
14

It's only a game,

Musselburgh 21/03/2008 15:30:56
The off field team take a leaf out of the on field team...Blip, Blip, Blip.
15

Neutral Observer,

21/03/2008 15:32:39
I think that the glass could be seen as half full as opposed to 85% empty if the fans could be happy with what is on the pitch i.e. if the huge trading loss was incurred at the expense of success on the playing side. But virtually all the quality that was there 2 years ago has gone. The outstanding team under Burley had quality in the shape of Gordon, Pressley, Webster, Skatel, Hartley, Bednar etc. Overall, is that quality there now?
16

victorian,

21/03/2008 15:32:43
#13, eh no. i've just stated the position as has been reported. it sounds very much like it's you who have no idea.
17

It's only a game,

Musselburgh 21/03/2008 15:44:34
#15

The now have quality seconds and thirds.

£37 million in debt.

Where has the pieman gone? Bring back the pieman
18

It's only a game,

Musselburgh 21/03/2008 15:47:20
Third party investors who will want their money back and more.

Que large Hotel chains and Bannatynes wanting a part of the Sub-way chain
19

tomias,

Edinburgh 21/03/2008 15:53:15
By chance I spoke ot- intervied a Hearts supporter today on another matter.
He spoke about his being a ticket holder and went so far as to outline how this was financed- for an older pensioner.
A wee job once a week to finace the costs,via a loan society.
I really wonder if the Heart Board and senior directors reall know and appreciate the week in week out supporters.
As a non football person I did feel sory for this chap.
But given soccars monetary ambience- I also wonder who cares about the supporters like him
20

NYC Hibee,

edinburgh 21/03/2008 15:55:05
" Other causes of the loss are expected to include interest to creditors"

mm I wonder who that may be?
21

victorian,

21/03/2008 15:56:32
#20, come on then, don't tease us, thrill us with your special insight as to who it is.
22

It's only a game,

Musselburgh 21/03/2008 15:58:02
#20

Vlad has to pay the Family somehow NYC
23

NYC Hibee,

edinburgh 21/03/2008 16:00:00
#21 I'm only asking the question. My guess would be big bad Vlad - getting richer by the minute it seems!
24

It's only a game,

Musselburgh 21/03/2008 16:02:45
#23

Nope,

He has to pay his young yin the going rate for a top of the range CEO.

In the region of £250,000 for the superb work that young Roman has done for the Hertski
25

victorian,

21/03/2008 16:16:44
#23, oh vlad. vlad, hadn't thought about him. cheers, now we know it's vlad.

see you muppets later.

26

1875,

21/03/2008 18:08:19
Chatting with a hearts player this week (my son used to play fotball with him) and things aint too great guys, sorry. hearts squad do not stay over in hotels the night before a game, regardless of where in Scotland it is, hearts are not paying their bills (nowt new there though) and the bemused and battered Frail is becoming a shadow of his former self. Add that to the current league position and the jambo optimists are clutching at straws a bit here.

Good luck
27

ty175,

21/03/2008 21:46:00
Tick Tock
28

gorgie resident,

22/03/2008 01:44:38
we may be in debt but don't forget if Mr Romanov had not put his money into the club we would be vieing Flats and a possible car park long live my jam tarts
29

walkie,

flats, flats, glorious flats. 22/03/2008 09:05:07
we may be in debt but don't forget if Mr Romanov had not put his money into the club we would be vieing Flats and a possible car park long live my jam tarts

i agree long live vlad, good job son.
30

Laughing at The Jambos,

22/03/2008 09:23:35
#4 1874

Wow...that IS a revelation.
OK Muchacho....what WILL the debt be next year?
31

Laughing at The Jambos,

22/03/2008 09:24:45
#28 and 29

Are you twins???
Are you BOTH daft, or does one lunatic count as two the way the maths are done down Gorgie way these days???
32

Laughing at The Jambos,

22/03/2008 19:47:13



What's to worry??
DARTH VICTOR says it'll be OK....so there !!

 

Comment on this Story

 

In order to post comments you must Register or Sign In

 
 
RSS Feed of this article's comments
Delivery formats: RSS, Atom, Javascript & Email
 
  

 
 

More Football

More Football >>

More Heart of Midlothian FC

More Heart of Midlothian FC >>

Features

Supplements
Photos Today

Featured Advertising



Sister Newspapers:
Press Complaints Commission

This website and its associated newspaper adheres to the Press Complaints Commission’s Code of Practice. If you have a complaint about editorial content which relates to inaccuracy or intrusion, then contact the Editor by clicking here.

If you remain dissatisfied with the response provided then you can contact the PCC by clicking here.