Ominous signs for Hearts after another wait for wages

Hearts' brittle financial state was confirmed last night when it emerged six of the club's highest earners have had their wages deferred.

It was the first sign yet of serious and potentially catastrophic cash problems afflicting the club, whose debts have risen to an unsustainable £37m under their Lithuania-based owner, Vladimir Romanov. As a result, the players involved are uncertain of whether they will be paid today, despite the rest of the squad having their delayed payments processed on Monday.

They reluctantly agreed to the deferment after talks with the club's sporting director, Anatoly Korobochka, revealed the Ukio Bankas Investment Group, owned by Romanov, are facing serious cash-flow concerns amid the global banking crisis. There were no assurances that the players will be paid today, with a club official "hopeful" rather certain of the wages being processed.

Hearts' squad did not receive their weekly wages on Friday but still managed to defeat Rangers 2-1 at Tynecastle despite the latest embarrassment forced upon them by Romanov.
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The club are now in serious financial trouble, with 10 senior members of a 60-strong first-team squad representing 50% of the entire wage bill. The club's short-term viability may hinge on their ability to sell major assets in the January transfer window. Offers have already been received for players such as Laryea Kingston, whom Portsmouth and Bolton are keen to sign, while the sale of the club's biggest asset, Christophe Berra, is also a priority.

This month, Hearts have begun paying their players directly from Lithuania, having previously transferred funds via a current account with Halifax Bank of Scotland.

However, Hearts' financial problems do not end there, with the Scottish Football Association yesterday confirming that they had been asked to act as arbiter in a dispute between an agent of a Hearts player and the club.

The SFA are also involved in the row between Hearts and Arbroath, who are threatening to freeze Hearts' gate receipts over the transfer of Andy Webster.The Irn-Bru Second Division club, who sold the defender to Hearts in 2001, say they are owed more than £14,000 after his subsequent move to Wigan two years ago triggered a sell-on fee clause. Arbroath claim Hearts have repeatedly assured them the money would be paid but have yet to act upon those promises.

The Arbroath secretary, Gary Callon, said: "It may not be a lot of money to Hearts, but it is to us and there are a lot of good things we could do to the ground and for players with it.

The Scottish FA has reported them to the general purposes committee and there could be implications for them in not being able to deal in the transfer market, and even being thrown out of Europe unless they pay."

George Foulkes, the former Hearts chairman who brought Romanov to the club but resigned just over three years ago in protest against decisions made by him, was dismayed at the latest developments.

"Those of us who are supporters are very anxious to do nothing to destabilise the club in any way," he said. "We've just had our best run since former manager George Burley left, with five victories in a row, including over Rangers.

"That is why all of us are looking at these reports with dismay. There have been reassurances from people on behalf of the owners but there still is cause for concern."

Foulkes was loathe to spark fears Hearts might be in financial difficulty, saying: "I would be really worried about anything that might be said or done to precipitate a crisis. A lot of clubs are facing financial difficulties at the moment, with wages having risen, revenue having reduced, and the credit crunch."

Taken from the Herald