Hearts respond to administration rumours

Hearts have been forced into issuing a statement as speculation grows that the club is on the brink of administration.

The Tynecastle club have been in financial meltdown for a number of years with debts believed to be in the region of £25m with £15m owed to Ukio Bankas of Lithuania who are themselves in administration.

Should the club go into administration before the end of the season they will be deducted 17 points almost certainly sending them into the First Division.

Responding to speculation about administration a statement on the club website read: “The club has been made aware of rumours concerning the possibility of administration.

“The club will continue to do everything within its power to trade normally.

“It should be noted that Hearts has not required or received additional funding from UBIG or Ukio Bankas in over a year and is servicing its existing debt.

“The club is completely up to date with player salaries and taxes and the club continues to head towards operational self sustainability.

“This has been made possible by reducing operating costs while continuing to focus on increasing revenues through season ticket sales, match ticket sales, merchandise, hospitality and sponsorship.

“While the general economic and Scottish football marketplace conditions remain challenging, Hearts is focused on meeting its requirements as a business and a football club.

“The club’s health and viability continues to be dependent on successful player identification, development and trading, careful cost control and building revenues.

“With the continued support of the Heart of Midlothian fanbase, the club has an opportunity to continue stabilising and then building for the future.”

SFA President Campbell Ogilvie is a former director of Hearts.