Romanov bids to extend his maroon empire at Hearts

That was how Roman Abramovich transformed Chelsea into football’s over-achievers in England. Could Vladimir Romanov do the same in Scotland to Heart of Midlothian. With perfect timing, the Edinburgh club’s majority shareholder announced yesterday that he plans to make Gorgie Road the new Kings Road.

While his compatriot — Romanov is a naturalised Lithuanian, who was born in Russia, like Abramovich — broke his media silence just a day earlier to reveal that he plans to build a club that will monopolise success for 100 years, Romanov yesterday outlined his own blueprint for the maroon hegemony of the Bank of Scotland Premierleague.

While people scoff at Hearts being capable of such a thing, given that they have not won the title for 45 years, that was exactly the same with Chelsea, who had to look back 50 years to their own previous honour. Last season’s Premiership success at Stamford Bridge could easily be mirrored at Tynecastle. George Burley’s side lead the table by nine points and will play to another sellout 17,000 crowd at home to Dunfermline Athletic today.

However, just as the Roman Empire at Chelsea is only about one man and his wallet, so the Romanov Empire north of Hadrian’s Wall is equally about the reins of power being in one set of hands. Romanov began his task yesterday by formally announcing that he plans to increase his stake in Hearts to 90 per cent from his present 29.9 per cent. Once he reaches 75 per cent, the Lithuanian banker — who saved the club from impending administration last season — will de-list the club from the Stock Exchange, which he says will save money. It costs Hearts around £250,000 to be a fully listed company, though the current turnover for the club is just £7 million.

George Foulkes, the chairman, said yesterday that Romanov’s total control will allow him — without reference to the Stock Exchange — to pursue a more vigorous and swifter policy of buying new players. Abramovich has probably spent on new acquisitions at Chelsea (around £240 million) what the more modest Romanov is worth in total, but the ambition that the pair have to use their wealth is in equal proportion.

Romanov, who became the largest shareholder in the club in February, has offered 35p per share in an attempt to augment his holding. “This is one of the greatest days for Hearts,” Foulkes declared. “We’ve seen great success on the field and we’ve made a number of important decisions, to stay at Tynecastle and to appoint George Burley as manager.

“However, Vladimir Romanov indicating that he would like to become the owner of Hearts and making an offer of 35p per share is the best news for shareholders, supporters, the staff and the players.

“We are top of the Premierleague because of Vladimir Romanov’s involvement as principle shareholder and I think we can become even more successful with his role changing to owner. The advantages are that we can de-list from the Stock Exchange and that is a substantial saving in terms of money but also in terms of the rigmarole of having to report everything to the Stock Exchange.

“We can tell people more about what is happening at the club when we are not listed. It simplifies things as far as investment is concerned and it means that Vladimir Romanov can invest in the club and in players more easily.

“UBIG (a Lithuanian company chaired by Romanov) has given us assurances of their continuing involvement with the club and we believe this will enable us to continue our current progress.”

Romanov refused to discuss in-depth the financial implications of his bid, but the Lithuanian explained his decision to increase his shareholding. “It is an important day for me,” he said. “Looking to avoid the factionalism and conflict with shareholders is one of the reasons why I sought to acquire an increase in my shareholding. I understand the increased responsibility and it will act as a stimulus to act in the best interests of the club.”

Romanov does not want fans who have made an emotional attachment to the club to sell up their small amount shares, but he has targeted a group of major investors, such as Halifax Bank of Scotland, and businessmen whom he expects to take his offer. He swiftly announced that he has bought out Scottish Media Group’s 19.9 per cent stake, whose representative on the board, David Archer, now steps down.

Romanov has been Hearts’ white knight since he purchased a 10.3 per cent stake in the club last October by buying the shares owned by Leslie Deans, the former chairman. He then took the 19.6 per cent shareholding of Chris Robinson, the former chief executive, and turned around a divisive move to relocate the club to Murrayfield by selling Tynecastle to developers to clear off a £20 million debt.

In March, Romanov announced to the Stock Exchange that he had transferred his total shareholding to Ukio, his Lithuanian bank, which is now the club’s shirt sponsor. It was also expected to assume the club’s existing debts from Halifax Bank of Scotland.

Hearts’ last set of interim results, published in April, revealed a pre-tax loss of £221,000 for the six-month spell ending in January of this year.

Romanov also retains a financial interest in the Lithuanian club FBK Kaunas, and MTV Ripo, of Belarus. Earlier this month, it was revealed he had offered Inverness Caledonian Thistle the use of his extensive European scouting network, which has already been responsible for bringing several players to Hearts. Last Saturday, he told The Times that he hopes to have Hearts in the Champions League final within a few seasons.

Of course, it is the acquisition of players that most easily lends itself to a business run by an autocrat and not shareholders.

Burley has brought in several players on loan, whose wages are far in excess of the Hearts’ salary ceiling. Most notable is Edgar Jankauskas, whose was reported to be on £10,000 a week at FC Porto, and Rudi Skacel from Marseilles. While Burley is unlikely to be given the blank cheque Abramovich has issued José Mourinho, he could be easily be allowed far greater largesse under Romanov’s new system. It makes for an interesting season.

Taken from timesonline.co.uk