The SPL have been urged to probe the financial crisis at Hearts.
According to a report in The Sun four member clubs have written independently about the cash crisis at Tynecastle amid rumours that the club could go into administration next week.
If that happens Hearts will start next season with a points penalty- if they go into administration this week they will be hit with an 18 point reduction THIS SEASON relegating them to the First Division.
Hearts have had a rocky time financially over the last decade but the collapse of Vladimir Romanov’s Ukio Bankas with debts of around £380m has brought matters into the open with the club owing Ukio Bankas in the region of £15m.
New owners of Ukio Bankas, or their administrators, are likely to call in that debt forcing Hearts into administration or even liquidation since ownership of a stadium is often the only way to secure the future of a football club.
Dundee are believed to be one of the clubs demanding that action is taken against Hearts with the Dens Park club living within their means after twice going into administration.
The current situation highlights the laid back approach that the football authorities pay to licensing and producing audited accounts.
Rangers last produced audited accounts in June 2010 but were licensed by the SFA for the 2011/12 season during which they played in the Champions League and Europa Cup before going into administration.
Dunfermline failed to produce audited accounts in 2012 and went into administration earlier this season and took a 15 point penalty.
When a club can’t produce audited accounts it means that their accountants can’t see the business as a going concern which should ring alarm bells for the SFA and SPL.
Both authorities have preferred to take a hands off approach to this issue but if Hearts follow Rangers and Dunfermline into administration it’s surely time for the SFA to lay down the law to ensure that those clubs that live within their means aren’t punished by those that spend irresponsibly.
“it’s surely time for the SFA to lay down the law to ensure that those clubs that live within their means aren’t punished by those that spend irresponsibly.”
……good luck with that!
the SFA / SPL / SFL should introduce rules and regulations that ALL clubs must submit audited accounts or lose their right to play in the league.
OR they should introduce a bond system that clubs pay at the start of the season … enough to ensure they reach the end of the season. The bond could be in any form ie the stadium or other security.
The ruling bodies in scotland are a joke and should be ashamed to pick up their salaries. Kick the whole lot out….. i am sure there are thousands of fans who would do the job for expenses only.
You are so right ThaiScot – and most of the fans on expenses only would do a far better job. It’s time the fans took our game back from these incompetant corrupt officials and administrators.
BTW – where are you in Thailand?
I’m probably stating the obvious here, but the football “authorities” seem to pick and choose what issues they deal with and what clubs they use their authority on.
Swearing or looking at a referee in a funny manner is a capital offence for some clubs, whereas manhandling the referee, bringing the game into disrepute, and robbing the taxman is fine for others. Dunfermline are the scourge of the universe and should be punished with the full weight of the rules, whereas sevco are the saviours of Scottish football and should be protected at all costs.
I think the problem is that we’ve never had any football authorities in Scotland. All we’ve ever had are cowardly, dithering administrators who favour one particular club over all the rest. To them, fairness and justice, and good financial management, are just meaningless words.
i would love to see hearts and sevco die in the same year as thatcher
To my knowledge Hearts have made no attempt over the past year to trim their wage bill or cut costs of any kind at their club.
As predicted by most, through the light touch used by the authorities in the oldco case other teams would be attracted to go down that route. Hearts will NOT be the last.
No one will convince me that the authorities have not been protecting hearts to get them to the end of the season so that they will not be relegated.
On the other hand the authorities are allowing a 2nd div club to run ” no questions asked” at a £1.2m loss per month so they probably see Hearts debt as a bit inconsequential.
How many oldco’s can our league afford??
Hail hail
loved that last post P Mc.
add. pasiely to that and there’s my dream quad
they are mento put in audited accounts but the prolem is one club hasn’t audited accounts in 5yrs got put to div 3 still hasn’t so should not be in div 2 next season 4spl clubs asking about hearts should ask why the sfa are protecting rfc and interfeiring in the present board room problems ps scrap sfa,sfl,have one body members elected to the committee or 12 spl chairmen on board one elected chairman refs committee disbanded aswell all is do able for start of season,ps did trfc try to sell murray park last week as no mulla left in pot
As far as I can remember, Hertz have Always made every attempt to pay their right and proper taxes, regestered their players properly, passed on National Health Contributions to the cash strapped hospitals who desperately need it, and squared away their ‘running costs’, as in, newsagents, taxi companies and wee lassies that do face painting for childeren have always been paid.
And thinking about it, to my knowledge, they have never raised money for charity and trousered the dosh.
Really good point. Whatever we think of Hearts, we should remember that they are innocent of anything anywhere near as bad as the oldco and newco. At least Hearts spent their own money.
We should never, ever put Hearts, Falkirk, Dunfermline or anyone else in the same bracket as liquidated Rangers.
Agree with you both on the criminal elements but on a football front they have been blatantly playing players which they could not afford. In my book that’s cheating.
They are £25m in debt of which £15m is to Romanov’s bank they are running at a loss and are unable to service their debt. You don’t need to be a Cincinnati lawyer to realise they are doomed for at least administration.
My bug bear is that THEY have known their position for many years and have CHOSEN to do nothing about it. In the case of Dundee who have paid their dues for previous mistakes and are now run in a good fiscal manner were put into the SPL like rabbits in a searchlight now to be relegated while the fiscal cheats at Hearts seem to be being protected at all costs. Hail hail
Infact did they not get bumped by der hun?
Elbows?
Did they ever get payed?
I know chuckles says Triggers Broom FC settled all football debt, but he said that at least twice and then had to pay up again.
I’m starting to think Scottish clubs are catching the English clubs are in administration. Admittedly they have a while to go yet, but if its anything like what you see at this site..
http://www.footballclubsinadministration.com/ the list is huge!