tlg1903 Posted October 27, 2012 Report Posted October 27, 2012 because it started out from a victory over hearts Quote
Kowalski Posted October 28, 2012 Report Posted October 28, 2012 http://www.scotsman.com/scotland-on-sunday/sport/football/hearts-warn-fans-to-buy-shares-or-face-drastic-cost-cutting-measures-1-2602709 Describing the share issue as “an alarm”, Sergejus Fedotovas, the Hearts director, said that all previous efforts to raise revenue had been exhausted, and that the only other option in a difficult economic climate would be “dramatic” cuts. Hearts’ financial predicament could be exacerbated by a tax demand for £1.75 million which may have major consequences for the future of the club. The case, which Hearts reveal in their share issue brochure, will go to a tax tribunal next month, where the Scottish Cup winners have vowed to “robustly defend” their stance against Her Majesty’s Revenue and Customs. At the centre of the dispute is the loan agreement for a number of players between Hearts and Lithuanian club Kaunas, who were then run by Vladimir Romanov, the Hearts majority shareholder since 2005. The Edinburgh club have warned that, if the tax case goes against them, it “could have a dramatically negative effect on the company”. The share offer, launched on Thursday, allows fans to own up to ten per cent of the club and, although Fedotovas claimed that the intention was to invite “more participation” and “closer dialogue” with the community, he admitted that the scheme was first and foremost a cry for financial help. “We are doing this as a solution to the financial challenges that are facing the club and are affecting all clubs in Scotland,” he said. “If you want to maintain a squad that is capable of playing in Europe then the budget should be according to that. It is much easier for clubs that have stadiums with a capacity of 40-50,000 people. For a number of clubs in Scotland, getting into Europe is a bonus. For us, that is the task every season, something that we must achieve. “The share issue is a signal, an alarm to the people who are truly concerned about the club. We have gone through a really entertaining period and achieved on a number of occasions quite positive results in the SPL. Now, we have entered a period where economic downturn causes problems. If we want to maintain the name of the club in the capital city as one that aspires to play at the high level, then we cannot just cut, cut costs. “For more than a year, we have extensively cut costs across the board, whether that was the playing squad, administration, facilities. We cannot live like this all the time.” Despite selling some of their biggest assets and concentrating on home-grown talent, Hearts are still struggling to make ends meet. Fedotovas admitted that they had run out of ideas in their attempts to increase revenue, which is “short of £7 million”. It cost the club £8m just to pay the players’ wages last season, although that bill has now been cut. “We cannot go to supporters and ask them to pay twice for their season ticket because that would be a disaster. We have exhausted all the possibilities, and we still have a funding gap between the costs and the income. “That’s why we are coming to the wider society, to the people who are concerned about this club. We are saying ‘we want you to step up and say if you really care’. If you think that we should be strong and continue fighting then we need to do it together. “If this strategy fails, the club will be faced with a tough financial reality. The answer to that would be another dramatic cut in costs. And I don’t think anyone would be happy with a weak team and bad football results.” Prospective shareholders are being asked to invest a minimum of £110 by the club’s 19 December deadline. Fedotovas said that, if fully subscribed, the 11p shares would raise around £1.7m. He said that the money, which would allow the club to “trade normally,” would fund youth development, the growing cost of maintaining Tynecastle and, further down the line, the manager’s transfer budget. “If we are considering signing new players or re-signing players who are currently in the squad, we need the financial muscle to be able to do that,” said the director. Due to the transfer embargo imposed on them by the SPL, Hearts were unable to bring Rudi Skacel back to Tynecastle. The Czech player, who had been training with them, signed a short-term deal with Dundee United on Friday. “That is tough news for us to hear,” said Fedotovas. “Unfortunately we weren’t able to conclude with anything. We will look to January to see if there is a possibility to sign him in January and whether we would be financially strong to do that.” Vladimir Romanov, above, the club’s majority shareholder, has said that if the share issue were to be successful, he would consider passing more, maybe all, of the club into the hands of supporters. Fedotovas, who described the move as a “tasting step”, claimed that the early signs were promising. “I am happy to say that, just hours after the initial launch, we are having many calls from people who are registering their interest.” What is clear is that Hearts remain at the mercy of Romanov and his Ukio Banko Investicine Grupe, which has been in control for almost eight years. As of 20 June last year, Hearts owed UBIG £22.4m, with interest at 4.5 per cent. The share document states that UBIG will not seek repayment of this amount during season 2012-13 but the position will be reassessed on 1 July 2013. “If UBIG were to demand repayment of the full amount,” states the document, “the Company [Hearts] would be insolvent and face liquidation.” Against this bleak backdrop, the revelation that Hearts are also embroiled in a tax dispute is potentially devastating. Hearts say they will “robustly defend” their position and contest that the situation is no different to any other loan, where parent clubs often meet wage demands. The share document states: “The directors are attempting to robustly defend those claims but the burden of proof is on the company and the tax will be payable unless the company is successful in challenging the claims. The claims will be heard by the relevant tax tribunal in November 2012. “Specifically, HMRC has claimed unpaid tax liabilities of circa £1.75m (excluding interest and penalties) in relation to the arrangements between the company and Kaunas FC [and] certain players who were loaned to the company.” In season 2005-06, a number of players signed by Kaunas were immediately loaned to Hearts, including Edgaras Jankauskas, Roman Bednar, Martin Petras and Ludek Straceny. Quote
CtS Posted October 28, 2012 Report Posted October 28, 2012 If they're found guilty of tax offences they should be stripped of all their titles. Oh no hang on... Quote
Nellie The Don Posted October 28, 2012 Report Posted October 28, 2012 If they're found guilty of tax offences they should be stripped of all their titles. Oh no hang on... Do you think it dates back to 1991? They might have to replay the tennants sixes final. Quote
maverick sheep Posted October 28, 2012 Report Posted October 28, 2012 the consequences of this are huge. we may even need to get the losing semi-finalists to play-off for the title of skol cup runners-up. Quote
TENEMENTFUNSTER Posted October 29, 2012 Report Posted October 29, 2012 That Texaco Cup quarter finalist title is under threat. Quote
glasgow sheep Posted October 30, 2012 Author Report Posted October 30, 2012 tick tock tick tock nicked fae mad RISK FACTORS Please note that the acquisition of shares in the capital of the Company involves a significant degree of risk. You should carefully consider whether an investment in the Company is suitable for you in the light of your personal circumstances and the financial resources available to you. Specifically, in the context of an equity investment in a Scottish football club in the current economic climate and last reported net debt of £24 million, you should not expect any income from or return on your investment and should not acquire shares in the Company unless you are capable of evaluating the risks and merits of such investment and have sufficient resources to bear the loss of all of the money invested by you. The Directors are committed to strategies that are intended to deliver long-term value but there is no guarantee that those strategies will succeed. You should take personal advice from a professional adviser experienced in buying minority stakes in unlisted companies before taking any action in relation to this offer, including advice on the Sale Price of 11 pence per share. In particular, the following specific risk factors should be fully considered prior to a decision to acquire shares in the Company being made: • The Company's balance sheet is negative and the Company would be insolvent (on the basis of being unable to pay its debts as they fall due) without the ongoing support of UBIG or alternative funding. Whilst the Company has short-term comfort from UBIG that it will not call up its debt, there is no guarantee that UBIG will not do so in the future, although the Board takes comfort from the fact that UBIG has supported the Club from 2006 to date by funding and debt restructuring. • The value of the Company's shares will , amongst other things, be largely dependent upon the success of the trading activities undertaken which are likely to be influenced to a strong degree by the success of the Heart of Midlothian football team in the various competitions in which it participates. Changes in economic conditions can substantially and adversely affect the Company's prospects. • There is no market or dealing arrangement, nor in the forseeable future is there intended to be a market or dealing arrangement, for the Company's shares and, accordingly, it will be difficult for an investor to sell such shares (particularly where they constitute a minority holding) or to obtain reliable information about their value. Investors may realise less than their original investment and have a significant risk of losing all of their investment. • It may be difficult or impossible to dispose of shares in the Company and there is no guarantee that there will be any exit route. • Events in the past, or experience derived from these, or indeed present facts, beliefs or circumstances, or assumptions derived from any of these, do not predetermine the future. • The acquisition of shares in the capital of the Company will not be covered by the FSA Compensation Scheme or by any other compensation scheme. • Investors should note that the value of the Company's shares may go down as well as up and there is no certainty that they will get back the full or any amount which they invest. • The Company has no intention of declaring dividend distributions for the foreseeable future. • As at the 30th of June 2011 the amount due to the parent company, UAB Ukio Banko Investicine Grupe, was £22,413,000, which amount bears interest at 4.5%.UAB Ukio Banko Investicine Grupe have confirmed to the Directors of Heart of Midlothian plc. that they will not seek repayment of this amount during season 2012/2013 and at the 1st July 2013 the position will be reassessed.The balance due to UAB Ukio Banko Investicine Grupe is secured by a standard security over Tynecastle stadium and a floating charge across the company's assets. If UBIG were to demand repayment of the full amount, the Company would be insolvent and would face liquidation. • Heart of Midlothian plc. are subject to a significant ongoing dispute with HM Revenue & Customs ("HMRC") which, if it ultimately goes against the Company, could have a dramatically negative effect on the Company. Specifically, HMRC has claimed unpaid tax liabilities of circa £1.75 million (excluding interest and penalties) in relation to the arrangements between the Company and Kaunas FC in relation to certain players who were loaned to the Company by Kaunas FC. The Directors are attempting to robustly defend those claims but the burden of proof is on the Company and the tax will be payable unless the Company is successful in challenging the claims. The claims will be heard by the relevant tax tribunal in November 2012. • Whilst UBIG has expressed a current intention to explore the possibility of allowing the club's supporters the opportunity to acquire over time a majority stake in the Company's share capital and has positioned the current offer as the first step towards that possibility, there is no commitment on the part of UBIG to continue with this current intention and the Company's debt levels are such that further debt capitalisations may be required in the future, which would have the effect of significantly diluting the other shareholders' interests in the Company. For so long as UBIG owns or controls more than 75% of the Company's share capital, it will be able to pass the resolutions required to effect any such debt capitalisation. • The Company is largely owned and absolutely controlled by UBIG and will continue to be controlled by UBIG for so long as it owns more than 50% of the Company's share capital. Unlike directors, who owe certain duties to the shareholders of the Company, UBIG does not and can largely act out of self-interest at any time, although the Board takes comfort from the fact that UBIG has supported the Club from 2006 to date by funding and debt restructuring. • Assuming the Club is successful in relation to the HMRC case referred to above, the offer, if fully subscribed, should provide the Club with sufficient working capital to achieve its goals for the 2012/2013 season without requiring additional funding. However, if the HMRC case goes against the Club and/or the offer is not fully subscribed, the Club may have insufficient working capital to achieve its goals for the 2012/2013 season and may have to seek additional sources of funding. • Certain statements within this document constitute forward looking statements. Such statements involve risks and other factors which may cause the actual results, achievements or performance of the Company to be materially different from that expressed in the forward looking statements. There can be no assurance that the results and events contemplated b y the forward looking statements in this document will, in fact, occur. The Company will not undertake any obligation to release publicly any revisions to these forward looking statements to reflect events, circumstances or unanticipated events occurring after the date of this document, except as required by law or regulatory authority. The risks noted above do not necessarily comprise all of the risks potentially faced by the Company and are not intended to be exhaustive or presented in any assumed order of priority. Although the Directors will seek to minimise the impact of the Risk Factors, investment in the Company should only be made by investors able to sustain a total loss of their investment. Potential investors are strongly recommended to consult an investment adviser authorised under the Financial Services and Markets Act 2000 who specialises in investments of this nature before making any decision to invest. Quote
TENEMENTFUNSTER Posted October 31, 2012 Report Posted October 31, 2012 2 things from that. Firstly, tax case goes against them, they're fucked. Secondly, the share issue isn't fully subscribed, they're fucked. So they're fucked right? Quote
Jute Posted October 31, 2012 Report Posted October 31, 2012 2 things from that. Firstly, tax case goes against them, they're fucked. Secondly, the share issue isn't fully subscribed, they're fucked. So they're fucked right? Hopefully. Quote
dave_min Posted October 31, 2012 Report Posted October 31, 2012 2 things from that. Firstly, tax case goes against them, they're fucked. Secondly, the share issue isn't fully subscribed, they're fucked. So they're fucked right? So you're saying I should go put my chequebook away? Quote
mizer Posted November 2, 2012 Report Posted November 2, 2012 Published on Friday 2 November 2012 HEARTS owner Vladimir Romanov last night launched yet another withering attack on Scottish referees, accusing them of benefiting financially from the Old Firm. The Tynecastle club have fallen foul of Scottish football’s authorities for failing to pay their players on time on several occasions, face an upcoming HMRC tax case and have serious financial issues. However, none of that seems to bother Romanov, who chose to dwell on what he believes are the failings of Scottish officials. In an interview with Russian newspaper Izvestia, the controversial Baltic businessman had another blast at the Scottish game He said: “Sport has become showbusiness. I went to Scotland and bought a football team and I thought it wouldn’t be like that there. But no, it’s the same everywhere. No democracy. The referees there take money out of the top two teams and we expect them to judge fairly. Scottish referees have to love Rangers and Celtic. Otherwise, it’s the end of their career and they go down to the lower leagues. But it isn’t possible to change the situation there. “You try to fight the system, but the machine breaks you. As soon as I said what I thought, the mafia creeps up on you. If you try and break their showbusiness structure there, everyone turns against you and then your team has to fight the whole system.” Romanov has launched into several rants about Scottish referees and the media in the past. In October 2006, Hearts were fined £10,000 by the SFA for bringing the game into disrepute after further criticism of match officials. A £25,000 fine from the Scottish Premier League followed in February 2007 after accusations of the “buying off” of match officials and the club were fined £100,000 last year for their poor disciplinary record. Meanwhile, Romanov claimed again that he almost bought Liverpool last year. He explained: “I had the opportunity to buy Liverpool for as little as £200 million. Frankly, I then got scared. After a few days, the price had gone to three times that value and I realised that missed my chance. I already own Hearts in Edinburgh and the Scottish football fans and the public ?love me.” Quote
CtS Posted November 2, 2012 Report Posted November 2, 2012 Hilarious though the final paragraph is, I've come to love the way he speaks out about the OF. I went to Scotland and bought a football team and I thought it wouldn’t be like that there. But no, it’s the same everywhere. No democracy. The referees there take money out of the top two teams and we expect them to judge fairly. Scottish referees have to love Rangers and Celtic. Otherwise, it’s the end of their career and they go down to the lower leagues. But it isn’t possible to change the situation there. “You try to fight the system, but the machine breaks you. As soon as I said what I thought, the mafia creeps up on you. If you try and break their showbusiness structure there, everyone turns against you and then your team has to fight the whole system. Quote
Kowalski Posted November 6, 2012 Report Posted November 6, 2012 Former Hearts star John Robertson is urging fans to invest in the financially-stricken Tynecastle club. Hearts hope to raise £1.79m with a share offer that will give supporters a 10% stake and Robertson has been enlisted to support the campaign. "This is a call to arms," Robertson told BBC Scotland. "It's as simple and straightforward as that. "We need all the Hearts fans to help, if they can. The club is in serious, serious trouble." The Edinburgh club are currently disputing a demand from HMRC for £1.75m relating to a number of loan players that were at Hearts from 2005. But director Sergej Fedotovas has insisted that none of the money raised by the share issue will be diverted. And Robertson, who is the club's all-time leading goalscorer and had a brief spell as manager, is convinced the club are doing the right thing. "I spoke to David Southern [managing director] and Sergej and I asked for three things: honesty, integrity and transparency," explained the 48-year-old. "I asked a lot of questions about the state of the club and how they were going to go forward. "The club is in a severe financial state. "The wage level is coming down to a sustainable level but they need help to get to the end of the season. "But it's not all about wages. It's about keeping the floodlights on, pitch maintenance, the plumbing and other staff salaries. "Once we get there [the end of the season], the cuts that are in place will come in again and the club will be self-sustaining." Hearts owner Vladimir Romanov is no longer bank rolling the club and wage delays have become common place at Tynecastle, the latest of which resulted in a player registration embargo. "It's been a helluva seven years [since Romanov took over]," added Robertson. "Some of the players that have been here have been incredible. "But the wages paid were unrealistic. "Mr Romanov wanted to challenge the Old Firm and he threw a lot of money at it. "Now he has cut his personal investment right back. "He may have lost interest a little bit but he still wants the club to go forward in a strong position. "This is a bit like market research. If the fans come forward and show an appetite to get involved then I'm sure the next step will be to release more shares, with the potential for others to get heavily involved in the club." Quote
scotfree Posted November 7, 2012 Report Posted November 7, 2012 BREAKING NEWS: Hearts have been issued with a winding up order by the courts after failing to pay a tax bill on time. The order brought to the courts by HMRC is NOT related to the £1.75 million case that is currently being contested by the club. The latest order is understood to be for unpaid PAYE and VAT. BBC Scotland has learned the sum due is a substantial six figure amount. The club now have eight days to pay up or the winding up order will be enforced by the courts. More on Sportsound tonight from 6:10pm. From Sportsound. Quote
glasgow sheep Posted November 7, 2012 Author Report Posted November 7, 2012 BREAKING NEWS: Hearts have been issued with a winding up order by the courts after failing to pay a tax bill on time. The order brought to the courts by HMRC is NOT related to the £1.75 million case that is currently being contested by the club. The latest order is understood to be for unpaid PAYE and VAT. BBC Scotland has learned the sum due is a substantial six figure amount. The club now have eight days to pay up or the winding up order will be enforced by the courts. More on Sportsound tonight from 6:10pm. From Sportsound. They've had this kind of thing before have they not? Quote
maverick sheep Posted November 7, 2012 Report Posted November 7, 2012 Without the support of fans there is, as we issue this note, a real risk that Heart of Midlothian Football Club could possibly play its last game next Saturday, 17 November against St Mirren. This isn't a bluff, this isn't scaremongering, this is reality. Discussions on whose name is above the door, talk about how the money has been spent and debate on whether the investment in silverware has been appropriate is all natural but quite simply worthless at this moment in time. The only valid debate now is how can you help the club. Is the club worth less than £110? Quote
TENEMENTFUNSTER Posted November 7, 2012 Report Posted November 7, 2012 Ell oh ell They've had winding up orders umpteen times, this is different. They no longer have Romanov to swoop in and pay at the 11th or 12th hour. I reiterate, ell oh ell. Quote
dave_min Posted November 7, 2012 Report Posted November 7, 2012 The full statement is unreal. On the bright side it says we're going top & we're getting the Roseburn when we play them The (non) future of Heart of Midlothian 07.11.2012 Today the Board of Heart of Midlothian plc is writing to you with the express wish that every supporter provides emergency backing for the club. This is not so much a request as a necessity. To use the words yesterday of John Robertson, one of the greatest players in this club's history, this is a "Call to Arms". There is no greater need than now for supporters to invest in the club in whichever way you can, without delay. How can you do this? 1. Invest in the Share Issue! Take time to look at the Share Offer brochure and give some thought to what you might be able to afford to commit to the Offer. There are risks, we know, and these are laid out clearly so be very sure this is right for you before committing but please at least consider it. 2. Buy a ticket for you and a friend for the St Mirren game next weekend (Saturday 17th November KO 3pm)! We currently have 4,700 available seats for this game and we must fill the stadium for every game from now on to have any chance of avoiding future financial consequences. 3. Buy a ticket for you and a friend for the Celtic game on 28thNovember. It's always a cracking atmosphere under the floodlights at Tynecastle and we will welcome the champions for what we expect to be a cracking game. Let's fill the stadium and help the club continue to operate. 4. Buy a ticket for you and a friend for the Aberdeen game on 8thDecember. Aberdeen has already requested additional capacity as they vie for top spot in the Clydesdale Bank Premier League and this could squeeze availability for home fans. However, we want to look after our own fans and if demand from you is there, then we will make the Roseburn Stand available once again to Hearts fans. Without the support of fans there is, as we issue this note, a real risk that Heart of Midlothian Football Club could possibly play its last game next Saturday, 17 November against St Mirren. This isn't a bluff, this isn't scaremongering, this is reality. Discussions on whose name is above the door, talk about how the money has been spent and debate on whether the investment in silverware has been appropriate is all natural but quite simply worthless at this moment in time. The only valid debate now is how can you help the club. Is the club worth less than £110? This club has been supported for the last seven years by generous funding from the majority shareholding business Ukio Banko Investicine Grupe (UBIG) and we continue to seek the support of UBIG at this stage. However, no business is immune to the financial realities of the current global economy and for this reason the club's reliance on its supporters is greater than at any point in the last seven years. Our partners, our opponents, media, football bodies, many others - all are watching and judging how we will respond to the challenge. If we cannot demonstrate that we are united and we represent a force then there will be no due respect to the club from anyone around. Without your help now, we could be entering the final days of the club's existence. There are limited options for the Board of Directors to take to avoid the catastrophic consequences that a funding shortfall would mean for the club. In a footballing sense alone Hearts will suffer an immediate 17-point penalty. This would just be the start of a painful process that will affect every one of us and could lead to far more damaging actions that threaten the very existence of the club. The power is still in the hands of every Hearts supporter and for that reason we want to be as honest and transparent with you in the hope that you, too, believe that this club is worth saving. Now please make every effort you can to take any or all of the four steps outlined above and help this great sporting institution survive. Quote
mizer Posted November 7, 2012 Report Posted November 7, 2012 30/6/2009 Just the normal for them Quote
glasgow sheep Posted November 7, 2012 Author Report Posted November 7, 2012 Well nobody saw this coming did they Just surprised it took so long. Would they have given up their "champions league place" and 2 cup wins if the knew this was going to happen? Quote
mizer Posted November 7, 2012 Report Posted November 7, 2012 £450,000 bill according to the BBC Hearts are warning fans the club might not survive until the end of the month after being hit with a winding-up order over a tax bill of almost £450,000. The Edinburgh club issued a plea for "emergency backing" from supporters to avoid the prospect of administration. "This isn't a bluff, this isn't scaremongering, this is reality," read a statement from Hearts. "Without the support of fans there is a real risk that Hearts could possibly play its last game on 17 November." Hearts host St Mirren on that date, with the men in maroon travelling to Inverness this weekend. Quote
RDU_64 Posted November 7, 2012 Report Posted November 7, 2012 Jesus, what a mess. Almost makes you glad that we have Milne in charge! It's no surprise though, it's been in the pipeline for years now and the majority of the Hearts fans buried their head in the sands. Quote
mizer Posted November 8, 2012 Report Posted November 8, 2012 Former Hearts captain Paul Hartley has accused Vladimir Romanov of holding a gun to supporters’ heads after the stricken club begged for a financial lifeline from their fans. Facing a winding-up order from HMRC for an unpaid £450,000 bill and a tax tribunal over a £1.75 million claim, Hearts released a distressing statement yesterday afternoon warning that they could go out of business within a matter of days. The Gorgie club have pleaded with fans to support the recently launched share issue, aimed at raising £1.79 million, and buy tickets for forthcoming home matches. But Hartley, part of the victorious 2006 Scottish Cup winning side, insists owner Romanov has unfairly shifted the burden of safeguarding Hearts, who ?are £22m in debt, on to the ?fans. The current Alloa manager said: “It’s basically holding a gun to the supporters’ heads and saying: ‘We need a couple of hundred quid off you, or else.’ “It’s not as simple as that. Fans have had to dig deep already and it’s not there anymore. It’s before Christmas, and how do they expect the fans to pay that? “It’s totally unfair for them to ask the fans to put their hand in their pocket or else you won’t have a club. I was stunned when I heard the news. We’ve always heard in the past about players’ wages not getting paid and various tax bill problems, but they always got paid. “It looks like it’s the real deal this time. But you can’t see any way out of it. If they pay this bill, where is the next one going to come from or whatever? “It’s a quick fix, but it’s a long-term one you’re looking for. Hearts are £20m-odd in debt and who is going to come up with that sort of money to bail them out? “They can’t just keep asking supporters to bail them out – it’s too big for that.” Quote
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