FBK Kaunas To Hearts - Finances

Finances

Romanov's management of Hearts' finances have become a source of concern. Before he completed his takeover of the club, Romanov had pledged to eradicate the club's debt. Soon after the takeover was completed, the debt was transferred from HBOS and SMG to the financial institutions controlled by Romanov, Ūkio bankas and UBIG. Romanov permitted Hearts to greatly increase their spending on players, which explains why the club have signed experienced internationals like Takis Fyssas, Edgaras Jankauskas and Laryea Kingston.

Hearts' income has also grown during the last few years, but not by as much as their expenditure. The club was over £36M in debt at 31 July 2007, although Craig Gordon was sold for an initial fee of £7M days after that financial report was prepared. This, however, does not allow for the likelihood of further trading losses since the last accounting date.

Despite these losses and the consequent increase in debt, Romanov has pledged to construct a £51M new main stand at Tynecastle, which would increase its capacity to 23,000. Pedro Lopez, Hearts deputy chief executive, said that the proposals show Romanov's long term commitment to the club and that the increased capacity and revenue potential would allow them to reduce the debt in the long run. On 7 July 2008, Hearts issued a statement that stated the club would issue debt for equity in order to reduce the debt by £12M.

Despite this apparent investment, financial problems have continued to affect Hearts during the 2008–09 season. Player wages were paid late on two occasions, and win bonuses from the team's good run of form during November 2008 remain outstanding. This led to speculation that Hearts would sell some of their key players, including Laryea Kingston, Christophe Berra and Andrew Driver, when the transfer window opened on 1 January 2009, although only Berra actually left the club.

Read more about this topic:  FBK Kaunas To Hearts

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