Stuart Bathgate: Talk of sale is beginning of the end for Vladimir Romanov

Published on Monday 7 November 2011 02:43

VLADIMIR Romanov has spoken before about his desire to find business partners at Hearts. He has said before that the club must cut its wage bill and rely more on young players coming through from its academy.

And since even before he bought control of Hearts from Chris Robinson, he has talked about the desirability of a new stadium – first at a redeveloped Tynecastle, and more recently at an as-yet-unidentified site.

So when he discussed all those topics again yesterday on the Hearts website, none of it was new, and little was contentious. Every business would welcome new investment if the right partners could be found. Developing young players rather than making expensive signings, and thereby living within their means, is something the vast majority of football clubs need to do. And few would disagree that Hearts need a new main stand sooner rather than later.

The difference yesterday, however, was Romanov’s assertion that he would consider selling the club if a partner were not found. He has said before that Scottish football does not deserve him, and implied it is hardly worth his bother to keep going with Hearts, but this is the first time he has bluntly stated his willingness to sell up. He is at the end of his tether, and is open to offers.

Over the past few weeks, senior figures at Hearts have questioned his commitment to the club, and the tone of his statement suggests they have been right to do so. “I haven’t lost my interest in the club but I have for football,” he said. Well, it’s a football club, and if you’re not keen on football it’s hard to see how you can remain enthusiastic about Hearts.

It’s also hard to see where Ubig, the investment group which owns Hearts and in which Romanov has a controlling interest, might find suitable partners. They have been open to such overtures for six years now but, rightly or wrongly, the Scottish business community has shied away from the kind of large-scale involvement which is now envisaged.

And so, while yesterday’s statement may in time be seen as the beginning of the end of Romanov’s involvement with Hearts, it is unlikely that he will sever all connections any time soon. He has not stated how long he is willing to wait to find any partners, but, being well aware that none has turned up so far, he knows that finding one in the current economic climate could require some time and some patience.

The same goes for finding a buyer, if, as is likely, that becomes his preferred option. The one guaranteed positive aspect of any potential sale of Hearts in their present ground is the fact that, for those who have the cash, this is a good time to buy property in Edinburgh, with prices considerably down from their peak. Whether any other aspect of the sale would be attractive will depend on the conditions Romanov wishes to imply.

Would he and the other Ubig shareholders insist that a new owner clear Hearts’ debt? If so, that owner would have to pay out a sum close to £30million before being able to turn to matters such as stadium development or investment in the team.

Such a stipulation would clearly cut down on the number of potential buyers, as well as hampering Hearts’ hopes of a rapid revival under new ownership. And, while there will likely be some room for manoeuvre about the size and timescale for settlement of the debt, Ubig are in business to turn a profit. No matter how unwisely they have spent a lot of their money on overpaying players of modest ability, they have the right to seek a substantial return on their investment.

Rather than holding out for 100 per cent debt clearance, they may decide that it is better to cut their losses and sell to someone willing to pay, say, 90 per cent of the debt. But they will drive as hard a bargain as they can, as they are entirely entitled to do, so even once a suitable owner is found, negotiations could take some time.

The most encouraging aspect of Romanov’s statement, even for those who do not see a positive future for Hearts under his stewardship, is his insistence that he will continue to support the club financially in the meantime. If he does leave, it is best for his group of businesses and for any new owner that he does so in an orderly manner.

It is unclear what precisely is meant by the statement that he will “continue to support [Hearts] to the extent it remains reasonable”. Does that mean, for example, that the players will henceforth be paid on time, after the delay of over two weeks in paying their October salaries?

As ever with Romanov, there is always a degree of ambiguity in what he says. But at least he has made it clear that he wants to sell Hearts as a football club.

An orderly handover of power may take some time, but it is the honourable way to proceed, and Romanov will deserve considerable credit if he achieves it.

Taken from the Scotsman