posted Jul 31, 2008

this story has been done to death, kindly change the record...!

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posted Jul 31, 2008

yes sir

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posted Jul 31, 2008

Are you all stupid... Romanov owns the bank that charges interest that pushes the debt higher creating more interest then swaps £12 mill for shares to give him over 90 odd %... basically shares for free... he'll own the whole club soon and not have to listen to shareholders and do what he wants... bye bye Jambo's...

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posted Jul 31, 2008

Financing debt at this level is no real problem in short, medium or long term so long as the debt is servicable and the creditor is patient. Since the creditor is another arm of the same business then the only problem would arise if HMFC were to be put up for sale or the group were to collapse. As for the level of the debt so long as Hearts have a strong supporter base willing to spend money to help pay the way then UBIG will see the investment as worthwhile.
Its just a pity that we keep hearing of Mr Romanov putting his money into Hearts - aside from the purchase of shares (from the previous holders) its not particularly obvious that there has been any direct input of actual cold hard cash. Extending a line of credit which you are always obliged to repay and to finance the interest isn't the same. Buying more shares to convert the debt only increases the majority owner's proportion of the business that he owns along with its value.

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posted Jul 31, 2008

Just a quick question, it's probably been covered already but I just want to clarify.

If we look at things on a basic level does this mean our debt is now £25m? And if then the Bednar and Gordon money goes direct to the Heart's coffers that would reduce it by a further £11.5m to £13.5m?

I know that isn't the way it works probably but could someone explain it further? I doubt it is as black and white as that but surely we would see at least some of the transfer money come off the debt.

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posted Jul 31, 2008

If we look at things on a basic level does this mean our debt is now £25m? And if then the Bednar and Gordon money goes direct to the Heart's coffers that would reduce it by a further £11.5m to £13.5m?

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It's not as black and white as that, effectivley if the club was costing the same to run and they keep receiving the same regular income (gates/merchandise) then it would come down

there's 1001 variables though

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posted Jul 31, 2008

Was this posted as a WUM.

Posrts like this just give fans of the ugly sisters, who have their own problems (not all off them Shane) carte blanche to pull out all the old worn out financial comments.

Please dont even try to explin to them they dont understand common sense.

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posted Jul 31, 2008

Its crazy that so many of Scotlands top flight clubs are paying huge amounts in interest each season that could be going on players or season ticket price reductions.

Having said that, at least Hearts get decent transfer fees for thier players now.

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