SPL under pressure as Hearts administration threat grows
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.