Flats, flats, glorious flats. Hearts in trouble


A winding-up order against Hearts is hardly newsworthy, it happened in 2009 and 2010, but Vladimir Romanov’s comments this week suggest his days of funding the club have ended.  Much of the debts are owned to the Ukio Bankas, which Romanov is a large shareholder in, while players, small creditors and HM Revenue and Customs are also exposed.

Romanov previously converted a large chunk of Hearts’ debt to shares held by the bank, an investment it is unlikely to see a return on, so the possibility remains that Ukio could write-off the Hearts debt and use their majority creditor status to out-vote HMRC and allow the club to pay as little as a penny in the pound.

This is, however, a seriously worrying time for Hearts fans as well as the club’s creditors.  In Scotland we tend to refer to Ukio Bankas as Romanov’s bank, as though it was a wholly owned business.  It’s not.  Ukio have fiduciary responsibilities to their shareholders, all shareholders.  As such, the prime residential development opportunity off Gorgie Road presents a huge problem.  Hearts previously received a bid of over £20m for their stadium from a housing developer and Ukio will have title to the land.

When Ukio Bankas previously converted Hearts debt to shares they would have slipped straight into the bank’s assets column, irrespective of their resale value.  On paper, there would have been no negative impact for the bank.  Writing-off debt when you hold an asset is a different scenario.  Anyone who believes that a bank can easily walk away from a £20m asset sale has not fully appraised the situation.  Without players, who have not been paid and have been told to find new clubs, or a stadium, there is no football club.

There is a Kodak Moment coming soon at Tynecastle; I predict Livingston FC might be in for another name change in an attempt to harvest some new support.

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  1. Some great performances last night. Wish Samaras would play like that all the time.



    I suppose it has to be asked, just what would be the long term effects of both Rangers, and Hearts going out of business might be, with regard to Celtic.



    Celtic does not rely on TV money in anywhere near the same terms as other teams in the SPL. If Rangers and Hearts were to go to the wall, then ESPN would certainly want to have the contract looked at. That being the case, teams like Kilmarnock, and Dundee United would certainly be plunged into a financial mess. In fact, you could imagine the SPL becoming like a deck of cards.



    Financially, Celtic could be the only ones left standing. But what then?…..We would have virtually an automatic right of entry into the Champions league each year. But, we could end up in a league that holds about as much attraction as genital warts, for any player with any ambition. European football is okay, so long as you have a decent run. The SPL isn’t exactly held in high regard as it is. However, a league that could end up with no television rights whatsoever would be viewed even less so.



    Celtic having their own television rights could be one way forward, but other than Celtic die-hards, who would be interested in watching Celtic play, with all due respect, say Partick Thistle?



    I have very little sympathy as such for either Rangers, or Hearts. Rangers would have gladly seen us go to the wall before Fergus stepped in, and Hearts, and somebody said earlier, are just an odious organisation. Both these clubs are the architects of their own downfalls, and have nobody to blame but themselves. I have no interest in what happens to either of them. However, I do care about the knock on effect on Celtic.



    I assume there are those who read this website who are far more knowledgeable than me on this subject, and wonder what their thinking would be



    Hail Hail

  2. Jungle Ed



    Someone asked Rangers Tax Case a similar question yesterday.



    Based on the amount of debt any acquirer of Hearts is due to inherit at the present time, RTC said it would be like getting a lung transplant from a man in his 70s who had smoked 40 cigarettes a day for 50 years.



    Or words to that effect.

  3. RobertTressel



    I agreed with nearly every word of your reply, which added to my feelgood factor today. I assume a lot of us play football, and some will be better than others, so we must understand the impact of confidence and the potential negative, and even occasionally positive, effects of criticism. Where Celtic are concerned I’d prefer that judgement was left to the manager and his coaches, whilst we supported the team on the park.


    I can honestly say I don’t think I’ve ever seen a player don a Celtic jersey and become convinced they weren’t trying… of course there’s bad body language, but I’m sure the players want to perform.






    I agree that the other mob have unfairly been allowed to apply pressure and that’s wrong. However, we still have our own house to look after, and if they had never cheated we likely still have some serious pressure to endure.






    Entertaining headline. I’m not going to say any more about the mess at Rangers and Hearts, it’s not too important what I (we) think. However, I can honestly say it makes me sad that Scottish football is in this mess. The hate/dislike aspect of football was never part of the context for me, and Celtic are just my favourite Scottish team (by a long way, of course). I basically like Scottish football, what we’ve done, the players, the crowds and the legacy are astonishing. And Celtic are part of that context first and foremost. Whatever happens to those teams, Celtic will never be the same again. That could be good, but, it’s not my ideal scenario.

  4. Neil Lennon Is A Celtic Soul Brother says:


    4 November, 2011 at 13:05






    Its a pity we only seem to have the one pair to share around

  5. Paul, it is time football authorities and fans opened their eyes and realised you can’t keep borrowing or relying on a sugar daddy to bail you out. You must spend what you earn and only borrow what you can afford to re-pay. If it takes Hearts and Rangers to go bust then that’s a price I am happy to pay for the good of Scottish football :)



    One advantage Hearts have over Rangers is their stadium is in a better location and may have a better sale value for other purposes. Maybe Romanov will sell Tynecastle to reduce the debt to a manageable level and rent or share a council community stadium.

  6. Joe Filippis Haircut on

    Well I think we can have no doubt that Peter Lawwell was right when he said Scottish football is dying if Hearts and Rangers both go under it is likely two teams from Division one would replace them and its reasonable to expect they wouldnt be as good as either Hearts or Rangers.Now at first thought this may be a good thing as we would be the only big fish in the small pond so we should win more trophies however,when you think of it the better the team we play the better Celtic play (last night being an example) so it might not benefit us in the long term.Games against Hearts and Rangers are usualy exciting because the outcome is never certain it is boreing when we play teams at Parkhead who park the bus and have no intention of trying for a win. So I think again its a case of watch what you wish for our best bet for progress is to join a new European League sooner rather than later.H.H.

  7. BhoyinEngland at 13:24



    I suppose it has to be asked, just what would be the long term effects of both Rangers, and Hearts going out of business might be, with regard to Celtic.



    It all depends on where the club see the future of Celtic. If both go belly up and we remain in Scotland, then as you say there wouldn’t be much attraction for sponsors or potential players.



    If our two main rivals do go to the wall, we would have a case to go to UEFA to ask for admittance into another league as the long term sustainability of the club would be in doubt if we had to remain in the Scottish league.




  8. Well humble pie is in order,,,i slated big Sammi yesterday and what does he do,he has a stormer,,,i think he did it on purpose just to make me look bad :D



    So come on Sammi prove me wrong play like you did last night on Sunday against M/well if you do i for one will applaud you big man!!



    Hail hail

  9. C1st -I expect by any normal definition neither of these concerns is viable, where la belle Charlotte and I struggle is with the idea that by the time Santa comes both clubs will no longer exist.



    Gerard Depardieu has no strong views on the matter, at least none that are stronger than his bladder.



    Rutger Hauer is waiting for Mark Hateley to get back to him before he shares his thoughts.



    FWIW Penelope Cruz is very much in the Blantyre Kev camp.

  10. Ideal senario.



    Rangers and Hearts go bust, never to be seen again.


    Celtic use the SPL as a “development” league for homegrown U21 players.


    SPL becomes a bit more competitive as each team will have a reasonable chance of winning it.


    Celtic move to a European League and go from strength to strength.




  11. BhoyinEngland



    Some will play for Celtic because they love Celtic. Some will play for Celtic because they like living in Scotland and Celtic are the best team playing the best money in Scotland.



    Up-and-coming players from the four corners are likely still to come thinking it might get them a move to England or because they fancy some medals and some CL games. These guys are not going to be any less attracted to Stirling Albion versus Celtic than they are to Inverness Caley Thistle versus Celtic at the moment. In short, no one is coming to the club because of the attractions of domestic Scottish football.



    Scottish football needs to become true to itself. It can’t keep pretending it can afford yachts and Jaguars. It is what it is.

  12. I suppose it has to be asked, just what would be the long term effects of both Rangers, and Hearts going out of business might be, with regard to Celtic.




    I would say, instant joy followed by long term happiness… :)

  13. Wee song for Craig”Helium Heid” Whyte and the rest of the deluded Huns



    Liars Inc. lyrics



    It hurts to say your name


    How could you do this then walk away


    And then you see that all your lies


    They are alive inside of you


    Because you still believe





    Cost you everything


    Because you still believe


    That you can rule the world


    Lost inside your mind


    Is the only thing


    That shall set you free



    You pushed me to the edge


    I see you changing so many ways


    { From: http://www.elyrics.net/read/f/freakhouse-lyrics/liars-inc.-lyrics.html }


    And where I am it’s hard to breathe


    You know that I can always see


    Through you






    Isn’t it strange how the little things


    Remind you of the way it used to be


    Everthing changes…





    [CHORUS X3]



    And it cost you everything


    And it cost you everything


    Because you still believe


    And it has to say your name



    Send “Liars Inc.” Ringtone to your Cell

  14. Imagine there’s no Rangers


    it’s easy if you try 


    No Snow Whyte


    to help them.



    They don’t get owt from SKY


    Imagine all the people 


    On their knees to pray



    Imagine there’s no Rangers 


    it isn’t hard to do. Nothing to


    kill or die for And no religion too


    Imagine ” We are the Peepo”


    Never sung again.



    You may say I’m a dreamer 


    But I’m not the only one


    I hope someday you’ll join us


    In the world where there’ll be no Rangers




  15. And what if Hearts don’t apply for the newco route, but simply fold up and sell off assets to developers etc?



    The SFA/SPL would have no decision to make for hearts, when it came to rangers case they could claim losing two big SPL sides in a single season is a “terrible vista” and requires exceptional measures. They might even make such a claim sound reasonable.

  16. Is there any chance of tickets for the game on the 28th becoming available on general release?

  17. Patria O Muerte on

    I for one wont shed a tear if any of the 2 welldwellers go to the wall….. Celtic are financially stable and a new possibilty will come and we will be prepred as we have no debt, big support and world wide recognition…..



    We will get through any intermediate stage should there be one…..



    Whats not to like?



    Surely thats not been the boards plan all along, has it?? surely not.



    POM whos as happy for NL and his battlers as a pig is in the……….



    Now, where did I leave my white russian…..mmm

  18. Vmhan who Supports Neil Lennon says:


    4 November, 2011 at 13:49





    Posted like a true Celt. Well done sir!






    I wont lie im not a Sammi fan,,,but credit where its due,,he showed balls last night and he deserves our respect,fair play to him,i just hope he keeps it up!!!



    Hail hail

  19. wycombebhoy says:


    4 November, 2011 at 12:43



    I remember you well! I know your surname and also remember your sister. Were you and Tommy not cousins. I also remember you playing at left back from the time you were in Primary 4. You could have made it as well. You had real talent.

  20. South Of Tunis on

    ASonOfDan @ 12 50 —–



    Sion /UEFA ——



    UEFA have managed to get themselves into a real mess over Sion —–



    As things stand —–



    A Swiss Court has ordered UEFA to reintegrate Sion to the Europa League.



    A Swiss Court has ordered UEFA to pay a fine [ @ £800 a day ] for every day that UEFA fail to reintegrate Sion .



    A Swiss Court has ordered UEFA to pay Sion’s legal expenses.



    The recent ‘ exploratory conversation ” between a Swiss Court and UEFA big wigs -Platini and Infantino apparently revealed that UEFA rather foolishly believed that since Switzerland is not a member of the European Union then UEFA were safe from any European Law that might relate to the Sion case. However , whilst Switzerland is not a member of the European Union it does have some bilateral agreements with the European Union —— Cue panic at UEFA HQ at the thought that some of the relevant aspects of European Competition Law — particularly Articles 101 and 102 [ relating to competition and abuse of dominant position ] might actually be applicable in Switzerland . Many legal eagles believe that might well be the case



    Cue Sion referring their case to the relevant European Court.



    UEFA will not want to go anywhere near a European Court . Sion are very unlikely to go anywhere near the Court of Arbitration , since they believe [ possibly rightly ] that CAS Is a UEFA poodle.



    Big ,big problem for UEFA . Easy way out would be to reintegrate Sion —–but how can they do so without incurring wrath /expense etc from other affected clubs etc .



    Italian media are already suggesting that the only way out for UEFA is to play the out of court – Charleroi Solution —— ie —- Pay Sion lots of money to shut up and go away..



    An absolute mess [ largely of UEFA’s own making ]

  21. Sandman Is Neil Lennon on

    I want to see Paul67 forthwith issue a yellow card for anyone abusing our sensibilities with yet more repetition of the teeth-grindingly banal hack-journo metaphorical-beige phrase, ‘turned a corner’.

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