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Hearts: Edinburgh club put squad up for sale amid financial crisis

Last updated on .From the section Footballcomments500

Hearts players

Hearts will listen to offers for their entire first-team squad in an effort to keep the club afloat.

The Edinburgh club said it was the result of other revenue "drying up", with season ticket sales about half what they were last year at this time.

Managing director David Southern told BBC Scotland it is doubtful they will be able to pay players' wages that are due at the end of this week.

Hearts need to raise a "significant six-figure sum" before the weekend.

The club faces uncertainty with a debt of £25m - £10m of which is due to their parent company, UBIG, which is claiming insolvency.

And the club owes £15m to .

Hearts' majority shareholder, Vladimir Romanov, who claims to have spent £60m on the club, is seeking a buyer for the Scottish Premier League outfit.

In a statement, the club said: "It is now crucial to the football club that we find a solution to bring in enough finance to allow us to trade into the new season when normal trading can resume with the benefit of SPL and game-related income streams.

"The payments to HMRC and players/staff salaries are the most important issues in our focus these days where very limited time remains available to the club.

"However, given that the revenues for season tickets has dried up and no other realistic income is available quickly enough, the club will consider offers for the players of the current squad, including the most promising talent in order for the most necessary and important payments to be made."

Hearts have had assurances from the administrator handling Ukio's liquidation that he wishes to keep the football club as a going concern.

However, the club says the resulting uncertainty has led to the club's main source of revenue in the close season - the sale of season tickets - drying up, with around 6,500 being sold so far, leading to problems in .

"Due to recent unexpected circumstances away from Tynecastle, the club is now experiencing a shortfall in funding," said the club statement.

"This shortfall, due to recent uncertainty, has created a significant noticeable blockage in projected revenue streams for the club.

Interview - Hearts managing director David Southern

"While this hesitation is understandable, it is unwittingly damaging the club's current efforts to improve its financial situation, including current payments to HMRC and raising doubts over future payments to players and staff.

"The board had planned to bring income in through the sale of players while considering the financial forecast for next season, but now this will need to happen much earlier in order to preserve the business."

Hearts say the financial problems have resulted from their worst league finish in more than 30 years, the absence of Rangers from the SPL and increased costs relating to the Main Stand.

"Provided we can achieve security for the club, it is the view of the board that there is a viable strategy for the change of ownership to a willing buyer or investor," they add.

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  • Comment posted by U1671476, at 11:42 13 Jun 2013

    Hearts website quote: "However, the club today blamed “hesitation and inaction” from supporters for the lack of funds despite the £1.1m generated from a share issue just six months ago.

    Considering the fans bailed them out with donations masquerading as a share scheme last December I think that is a shocking comment.

  • Comment posted by el diablo, at 11:32 13 Jun 2013

    No sympathy for Hearts owner, board or fans that coudn't see it was all built on money they simply didn't have.

    lots of sympathy for genuine hearts fans who will now see their players walk away for nowt next week as they won't get paid and will exercise their right when the club breaks it's contract.

    you can't blame the players seeking out a wage at another club who will honour the contract.

  • Comment posted by Jock, at 12:21 13 Jun 2013

    I fail to see how Rangers not being in the SPL this season is responsible for Hearts being in debt to the tune of £25 million. I think years of spending beyond means is clear reason.

    As for club having a go at their own supporters for being slow to put hand in their pocket, a cheap shot, from a bunch of muppets that have ran Hearts into the ground.

  • Comment posted by U1713294, at 11:34 13 Jun 2013

    @29 Don't flatter yourselves Georgej.

    The reason that Hearts are on the road to ruin is because of their buffoon of an owner. Maybe you can relate?

    And Rangers going into administration and then liquidation, thus shafting their creditors and shareholders is nothing to be proud of.

  • Comment posted by mallorcasaint, at 11:51 13 Jun 2013

    Will Scottish football survive? Of course it will. Football will still be played but maybe not within the structure we have at the moment. As for Hearts blaming the fact that Rangers are not in the SPL, well that is complete rubbish. The reason Hearts are in trouble (and Rangers before them) is that they were spending beyond their means.

  • Comment posted by mikeg40, at 12:48 13 Jun 2013

    sad to see but clubs cannot spend beyond their means. as a st johnstone fan, I hope hearts see this crisis through and am again so very glad of the prudent approach of the brown years. we might have been in the same boat if we'd gambled on european success

  • Comment posted by U15583549, at 11:14 13 Jun 2013

    Weren't Hearts supposed to have won the Champions League by now, as part of Romanov's vision when he took over?

    Well that didn't work out...

  • Comment posted by U12525194, at 13:00 13 Jun 2013

    This isn't due to any recent events, it's a syptom of the spendthrift 2000s, where SPL clubs naïvely tried to keep up with the money in English football.
    Some like Dundee & Motherwell imploded quickly, a few like United & Killie brought themselves back from the brink, but Rangers & Hearts ignored it and only made things worse. Rangers disappeared & now Hearts are fighting for their existence.

  • Comment posted by Kop05cm, at 11:42 13 Jun 2013

    What is Danny Wilson going to do now. Bit of a nightmare after just signing for the jambos!

  • Comment posted by ijamieson, at 09:31 14 Jun 2013

    Thanks to the most venerable Stewart Milne my beloved Aberdeen is safe from financial disaster. We love you Wiggy. Please father my children, if you haven't done so already.

  • Comment posted by U15410283, at 18:51 13 Jun 2013

    One of the sad things on this thread is the number of people who are reacting with glee to Heart's sad situation.

    I'm not a hearts fan, but I hope they survive this, like I would any famous old club in this position. Remember this could happen to YOUR club, no one is safe from mismanagement and idiots

  • Comment posted by hassan haslam, at 12:54 13 Jun 2013

    As a Birmingham city fan, I do feel for Hearts. Never a good situation to be in. Thankfully ours are looking OKish. Hopefully yours will be.

  • Comment posted by U14068172, at 11:44 13 Jun 2013

    dolf_lundgren.............absurd post. Hearts have advertised that all team members are up for sale in order for the club to continue operating. READ the article.There is a shortfall in funding hence why a fire sale. Your comparison to Real and Celtic's situation is ridiculous. WAKEY, WAKEY.

  • Comment posted by JamTart92, at 17:34 13 Jun 2013

    Romanov isn't the reason for this, he certainly didn't eradicate the problems (12K/week wage for Andy Driver would highlight that), but he did inherit them.
    Hearts are in this mess as an accumulation of the last 20 years... what wages were guys like Stephane Adam, Gilles Rousset and Thomas Flogel (to name a few) on back in the 90's?
    It's all adding up now anyway.

  • Comment posted by ajaxtreesdown11, at 17:23 13 Jun 2013

    They signed Danny Wilson last week...now he's up for sale!

  • Comment posted by Govie, at 13:33 13 Jun 2013

    Hearts are in the mess they are in because of Romanov and years of over-spending, not down to one year without Rangers. No need for Rangers fans to be so triumphant when they are still going to be in the 2nd division next season.

  • Comment posted by U15057119, at 12:14 13 Jun 2013

    @50 - Lottery money? This is a badly run business in a bad business model, not a charity. I'm all up for helping out ground-roots sport but not paid (overpaid?) players & management. Edinburgh is a big wealthy city and if it cannot keep Hearts afloat from within its own means/community then it's time to start afresh. I'm not saying this is right, but it's the reality.

  • Comment posted by U15749406, at 12:13 14 Jun 2013

    482#

    Too many people in edinburgh like rugby as their number 1 sport for hibs and hearts to ever have the support the Old firm do

  • Comment posted by U15494799, at 10:22 14 Jun 2013

    This is really sad. I feel the so called leaders of the SPL have to take a huge amount of responsibility over what is going on. Yes i know that the directors of these clubs are responsible for the running of their own clubs. But the SPL and SFA have a responsibility to monitor how these clubs are run. These jokers need to be booted out as this has all happened on their watch,

  • Comment posted by U15644067, at 09:08 14 Jun 2013

    Happy Rangers Liquidation Day!!!!

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