‘News’ that a football club can actually go out of business will come as a surprise to no one here as Hearts issued a statement saying “Without the support of fans there is a real risk that Hearts could possibly play its last game on 17 November.”
Hearts have two commercial problems: they owe HMRC money they don’t have and their running costs are greater than their income. They also have over £20m of debt owed to major shareholder, Ukio Bankas, which at this stage of their corporate existence is more of an asset than a liability.
The club have asked supporters to cough up around £2m to pay HMRC and see it through until the end of the season. A further £1.7m HMRC demand is being contested but should Hearts lose this appeal, that bill will crystallise quickly.
Unlike the now-defunct Rangers, Hearts major shareholder is due more than 75% of the debt, so Ukio could vote to accept a Company Voluntary Arrangement, possibly for as little as 1p in the £1, if the club goes into administration. This is a well-travelled road for Scottish football clubs who overwhelmingly fail owing shareholders or the bank the majority of their debt.
In this respect, there is no obvious reason why Hearts are in danger of playing their last game next week. Administration would allow the club to shed its debt, including the contested tax bill. It would almost certainly result in player redundancies, which would reduce expenditure below the level of income. Hearts would be diminished as a football club, and would take a 17 point hit in the SPL, but that is as bad as it needs to get. Ukio Bankas would take the largest hit on money they may well have already written-off.
The only thing I see for Hearts fans to worry about is the property value of Tynecastle. Ukio will almost certainly have a charge on all the club’s property assets. If the club disappears, they would be left with the real estate. Tynecastle is worth a whole lot more money as flats than as a football field.
When a company cannot pay its creditors it goes into administration and seeks to negotiate a settlement with them. Hearts can do this “within days if not hours”, as Our Hero once said. It’s just curious that Hearts are playing on the bring rather than sorting things out.
Maybe they could get former player and tracksuit salesman, Maurice something-or-other, to sell some of their assets.
The magnificent 1254125 charity cycle, from birthplace of Brother Walfrid, Ballymote, Co. Sligo, to Celtic Park, got underway yesterday. Today the six cyclists, Paul Muldoon (of this parish), Mark Cameron, Alistair Schulz, Robert Campbell Ray McFarland and Jim Kelly, left Blacklion on a 80 mile journey to Lurgan.
Check out their everyclick page for more information.
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Having witnessed the HMFC support, home and away, I’ll not miss them.
When Cletic were going out of business we were treated as a joke[ hearses sent to the ground], and got very little support from any of the hand-wringers that are currnetly a-wailin’ and a-gnashin’ their teeth over ole ‘Armageddon’.
Hell mend them , as my ole granny liked to say.
A couple of other vieeos from the successful Donegal GAA homecoming
1. Jimmy’s Winning Matches
http://www.bing.com/videos/search?q=youtube+jimmys+winning+matches&view=detail&mid=2497F24F13DED4C3DC792497F24F13DED4C3DC79&first=0&qpvt=youtube+jimmys+winning+matches
2. Jimmy chanting with Daniel O’Donnel at the same event
http://www.youtube.com/watch?v=5V581Otb3VI
hhplc
reflecting on this weeks monumental win for celtic when your far from home makes you realise how much you miss all things celtic, Given the publicity given to rod steward this week i would like to dedicate Rod’s classic mandolin wind to all those celtic fan throughout the world and most especially those members of the celtic family who are no longer with us I am sure
they celebrated in Paradise Hail Hail (sorry no link creator)
http://www.youtube.com/watch?v=jjKVBj0fmkg&feature=related
Cletic? WTFinger…
Auldheid
12:59 on 9 November, 2012
‘Is my memory playing tricks on me or was there not supposed to be some imminent publication or announcement on Rangers FTT Tax case?’
Because the tribunal sat in private the published decision will have to be anonymised so none of the witnesses/guilty parties can be identified.
That will give the huns lawyers lots of scope for delaying publication by arguing about what can and cannot be included to avoid the possibility of ‘jigsaw identification’.
Ernie…,
Do you have any details on the case I could use in the search,
I take it the dates at the side don’t indicate publication date then ?
Dontbrattbakkinanger – When Cletic were going out of business we were treated as a joke[ hearses sent to the ground], and got very little support from any of the hand-wringers that are currnetly a-wailin’ and a-gnashin’ their teeth over ole ‘Armageddon’.
It was only 6 years ago or so that the Hertz fans were convinced they were going to win the Champions League, because a Russian banker they’d never heard of rolled into town with lots of crazy promises.
They are as credulous as DeidCo’s fans were. (thumbsup)
hailhailplc
13:05 on 9 November, 2012
‘2. Jimmy chanting with Daniel O’Donnel at the same event
http://www.youtube.com/watch?v=5V581Otb3VI ‘
His contract with Celtic had better include an out and out ban of him doing that at CP otherwise Lawwell should be sacked.
ernie lynch – Re: jigsaw identification
I had you down as more of a dominos man.
Your eyes glinting fiercely under the brim of your tweed bunnet, your tobacco-stained fingers twitching with irritation as you tersely announce that you are chappin’.
Sort of an irascible Chic Murray. (thumbsup)
i am sure pablophanque would have approved of my friday night song selection as the witching hour approaches here in Tokyo
God bless every celtic fan
You’ll never walk alone !
皆さま あなたは ほとりだっけ あるいてない でしよう！
mina san anata ha hitori dakke aruite nai desshyo !
よろしくおねがいします
yoroshiku onegai shi massu (best wishes) UNEW
Neil canamalar Lennon hunskelper extrordinaire
13:08 on 9 November, 2012
The judge is Mure, search against that.
Though I wouldn’t worry too much about publication going unnoticed and unmentioned.
Re groundsharing – it’s all our fault – if we had offered to share with oldco they could have sold Ipox and Murray park for 80m and come to a ceditor agreement – wait a minute Green only paid 5m –
Ernie…,
Thought never entered my mind, I know full well all eyes are on the ball :o)
Good Afternoon
Responding to Stuart Cosgrove @TheSFMonitor — Hearts, The Taxman, Murray and Arthur Negus http://scottishfootballmonitor.wordpress.com/2012/11/05/why-the-beast-of-armageddon-failed-to-show/comment-page-11/#comment-22400 …
Also understand about lawyers trying to delay, which is why I was told today instead of usual date, probably pie in the sky, but it would round off the week nicely, no ? :oD
HMRC v HMFC – the sequel to HMRC v RFC.
It’s been a hell of a week. All I need now is the Big Tax Case result to be sneaked out late this afternoon and six number on the lottery tomorrow night!
Russion banker v Nigerian prince v Motherwell born billionaire.
Which of these is the real future of football?
Regarding the situation where the huns are alleged to be giving away free tickets
Apologies if this has been done before but, how do we know about this for sure? What is the evidence?
You know that’s one thing aboot zombies, they don’t need no stinkin tickets!
UNEW Mike – I was thinkin’ of ole Pabbers on Wednesday.
He’d have loved it.
If the FTT decision is published without names of key persons, I hope Sally gets up on his soap box to demand their identities be made known.
How about starting with himself?
philvisreturns and ernie lynch
forget about Owen Coyle and Peter Lawwell (and Daniel O’Donnell)
Jimmy McGuinness is the real deal….and a fine chanter to boot!
Neil had him over at Lennoxtown in September before the All Ireland final and Neil went to the final in Dublin at Jimmy’s invitation
He achieved his 5 year plan in 2 years and now Donegal will rule over Ireland for the foreseeable future……
This is from a man without any Donegal roots (sadly)
hhplc
So having beaten RFC, and about to beat HMFC, who will HMRC draw in the next round?
DBBIA I sent a message to Jonny on facebook as soon as i got the score the night in barcelona when david marshall kept them at bay was pabbers best night following the celts abroad jonny also confirmed my thoughts
so can ask now is the appointment of the donegal coach a backlash to my willie mcstay commment the other week or am i getting ideas above my station
wither the scofulous hill billies today
have they all gone bust
PS got rod steward and stevie nicks 1 hour concert on you tube
Celtic also covered the back pages of the Daily Yomiuri here in Tokyo today big half page spread with full colour photo
hail hail
Chelsea return a massive £1.4 million profit in the year they won the Champions League. How far beyond their means are they living.
Surely the financial fair play rules will curtail this spending.
Árd Macha
Afternoon bhoys from a damp but thankfully hun free mountain.
RIP Jack Duckworth.
………………………………………………………..
I am very surprised this has gone unoticed, this is modern day scotland for you.
http://107cowgate.com/2012/11/07/orange-order-in-primary-schools/
Can you imagine the outrage if they had a cartoon charachter called Republican Ronnie, instead of Diamond Dan the orange man.
I am shocked to say the least.
Have I broken the blog ?????
Paul67,
You have been at the top of your game this week. Take a Bow m8ty.
Cutting through the disinformation outlets at source once again today.
kitalba
12:04 on 9 November, 2012
A very interesting appointment, I’m all for it as we are ahead of the curve in so many ways.
If St Johnstone beat us 6-0 on Sunday, they will go ahead of us on goal difference.Hibs, ICT and Aberdeen can also go above us. No room for complacencey.
JJ
I knew three Russian companies from inside.
After financial crisis in 1998 Russian tax authorities changed rules for the companies. That was due to keep all transactions and money in Russia.
Example: If Russian company A was going to sell crude oil to German company B, Russian company A has had to order transport, get permit for export etc. Russian company A has had to issue invoices in adance and pay the taxes in advance. After that, they could apply to railways, governor, ministry etc.
This is how it worked.
On the other side they had business men who needed more money into their pockets.
The solution was very simple. Pay your taxes as they are requested but fund couple of companies on Jersey, Virgin Islands who will issue invoices for any kind of service: marketing, cleaning the office, dances on the tube.
This is how it worked and still works. At the end of the day you know who stands behind all those companies.
Hearts owner needs a help?
Somebody must ask him to show expenses and companies he is paying.
petec and kitalba seems i have underestimated Neil he is certainly planning for a long term future leaving no stone unturned to move forward
mighty portion of humble pie being washed down with a sake or two Hail Hail glad Neil is steering the good ship celitca and not me
I don’t know if anyone assessed NEIL’s post – match comment (“it’s been 4 years since we played in Europe” as sending out more than one message…….I think he was also telling the media / SFA / MIB / MEDIA…….”if you hadn’t tried so hard to keep rankers in business over the past 4 years, we would have won those 3 titles, and we would have been where we are today, enhancing Scottish Football’s reputation a lot earlier……….”
Oh, incidentally, if the comedians at iPox are going to continue to play a certain song at the morg, can I suggest an amendment to the wording……
” Celtic know all about OUR troubles, we can’t fight, ’cause our day is done,
There’s not a team called the Glasgow rangers, no , not one, and there never shall be one” LOL
I thought it was only holding companies that can be liquidated not football clubs?
Justsayin CSC
67Heaven
Neil also said there was a lot more to come from the Bhoys. ;))
Jim McGuinness will prove an inspirational signing for Celtic. His players at Donegal, I would wager, are fitter than 99% of pro footballers in the UK. It is no fluke that Barcelona never look tired, because 1)–they make the ball work and 2)–their physical conditioning is phenomenal. There is a third asset, as Celtic found in the Nou Camp. It’s belief. They are never beaten until that final whistle sounds. My heart was in my mouth on Wednesday, even though there were only 3 minutes to go. That’s also what Jim McGuinness brings to the party.
I’m Neil Lennon (tamrabam)
Plenty of us on here have seen the £0.00 tickets. It is happening.
THE EXILED TIM – Can you imagine the outrage if they had a cartoon charachter called Republican Ronnie, instead of Diamond Dan the orange man.
Don’t they feenyuns already do that in their kafflik schools?. (thumbsup)
People come into your life at the most relevant time.
I am really going to enjoy the next few years, hopefully, because I am now working beside a real character that is brutally honest about everything. A man who was drinking regularly with Sir Furious when he was sacked by the Saints. It’s a real sign I tell ya.