Hearts go for administration

Stricken Scottish Premier League club Hearts have signalled their intention to go into administration.

Last Updated: 19/06/13 at 14:16 Post Comment

Tynecastle: The home of Hearts

Tynecastle: The home of Hearts

The Tynecastle club are in the process of lodging papers at the Court of Session in Edinburgh and have approached accountancy firm KPMG to act as their administrators.

A club spokesman said: "We are not in administration yet but we have served our intention to appoint administrators."

Hearts were faced with a winding-up order last week after Her Majesty's Revenue and Customs threatened action over an unpaid £100,000 tax bill - although the majority of that sum has been paid.

And the entire playing staff has also been placed on the transfer list as Hearts look to make further cuts to try and save money.

Hearts were also hit with an immediate transfer embargo by the Scottish Premier League last Friday after admitting they could not afford to pay their players.

The news came just 24 hours after the Gorgie board released a statement saying they had entered a "critical" stage in their battle to pay off debts of £25million as well as financing tax and running costs.

The situation at the two Lithuanian companies which hold large stakes in the club has also raised fears for the future of the Edinburgh club.

Majority shareholder UBIG - which owns a 50 per cent stake in the club - and 29.9 per cent shareholder Ukio Bankas were both once controlled by Vladimir Romanov but are now in the midst of being declared insolvent by Kaunas-based authorities.

Ukio Bankas - which lost an appeal against liquidation last Wednesday - is due £15million by Hearts, who also owe another £10million to UBIG.

Politician Ian Murray is leading the Foundation of Hearts supporters' group who hope to buy the club, with a formal bid expected to be lodged by the end of the month. There is also interest from a number of other parties, including a Scandinavian consortium.

The club are now likely to face a 15-point penalty when the new SPL season kicks off on Saturday, August 3.

Top-flight rules state any club suffering an insolvency event will be stripped of 10 points or a third of their previous season's tally, whichever is the greater.

Hearts finished the 2012/13 campaign in 10th place with 45 points.

Football365 Facebook Fan Page

The Football365 fan page is a great place to meet like minded people, have football related discussions and make new friends.

Related News

Sky Bet

    • Retrieving latest Sky Bet odds

Most Commented

Readers' Comments

W

hy don't you call in Becks as well...and we will all have a lovely tea party!

kimosabi
United: Scholes helping out

M

ourinho is just a good-looking version of Allardyce (Fit Sam?). Clearly 19th century football isn't such a big deal after all?

Ezy_Rider
Chelsea Killed The Game Instead Of Playing It

S

tay put, Pep. Timothy Sherwood has this under control.

slowgraffiti
Guardiola plans Bayern stay

Footer 365

World Cup: Stewart Downing backs Andy Carroll to make England's squad

Stewart Downing has backed his West Ham United team-mate Andy Carroll to be named in England's World Cup squad.

Premier League: Liverpool striker Daniel Sturridge eyes Chelsea return

Liverpool striker Daniel Sturridge has confirmed that he is hoping to feature against Chelsea this weekend.

Champions League: Arjen Robben says Bayern Munich have plenty of reason for optimism

Arjen Robben believes Bayern Munich have plenty of reason for optimism despite suffering a 1-0 defeat at Real Madrid.

Mail Box

Man United Fans Excited By Van Gaal Talk

Man United fans know who they want to replace David Moyes, with Louis van Gaal the favourite to take over at Old Trafford. Plus, thoughts on Real Madrid v Bayern Munich...

Of Course People Remember How You Won

Some have said that it doesn't matter how Chelsea played as long as they won, but is that true? Plus, we've found the one chap who enjoyed Tuesday's game...

© 2014 British Sky Broadcasting Ltd. All Rights Reserved A Sky Sports Digital Media property