Hearts face anxious wait over future as relegation from SPL looms

By Roddy Forsyth

However, Telegraph Sport understands that although managers at UBIG declared that they would petition to put their company into administration – all the directors have resigned – the court in the Lithuanian capital of Kaunas did not deal with any such process on Friday, nor did it have notice of any.

If that state of affairs prevails beyond midnight on Sunday, Hearts will almost certainly play in the SPL next season, although they could still be docked points for the start of the new schedule, depending on events in Lithuania.

There has also, it appears, been no financial support or interaction between Hearts and UBIG for some time, another factor likely to operate in favour of the Tynecastle club when the SPL members meet on Monday to consider the situation.

UBIG was on Friday listed on a Lithuanian government website of insolvent firms after reportedly declaring itself unable to meet its liabilities. The firm owns about four-fifths of shares in Hearts and SPL rules can lead to points deductions if an owner suffers an insolvency event.

The SPL has consulted its lawyers and British insolvency experts who have, in turn, contacted Lithuanian counterparts, in an attempt to clarify whether or not UBIG’s action breaches the league’s rules.

Hearts argue that they have been self-sufficient since early last year so have not benefited from the funding of an insolvent company this season. However, they owe UBIG about £10 million of their £25 million debt and cost-cutting measures continued at Tynecastle this week when 19-year-old right-back Fraser Mullen was told he would not be offered a new contract in the summer despite making eight appearances this season before a broken foot ended his season in March.

Meanwhile, Neil Lennon declared that the loss of Hearts from the Clydesdale Bank Premier League would leave Scotland’s top-flight without its second and third biggest clubs. Ahead of Celtic’s last SPL game of the season against Dundee United at Tannadice on Sunday, the Celtic manager compared the possible departure of the Tynecastle club with the experience of rivals Rangers, who emerged in the Irn-Bru Third Division last season after their descent into liquidation, in mind.

“We would be losing probably the third biggest club,” Lennon said. “We have already lost the second biggest so it doesn’t look good.

“It is a pretty sad situation. It is a great club with a great tradition and this time last year they were in a cup final.

“I don’t know if another club will be promoted, Morton maybe. I only became of aware of the serious nature of it late last night. I don’t know what sort of damage it will do to the SPL, but there will be an outcry.

“Hearts have a decent support for a club in Scotland and to lose that would be pretty damaging.”

Lennon expressed his sympathy for his Tynecastle counterpart Gary Locke, who succeeded John McGlynn as manager in March. “It seems to have been going on for quite a while,” said the Northern Irishman.

“This time last year the players weren’t getting their money, but they kept on going and showed tremendous loyalty to Hearts. They went on to win some silverware and now they find themselves in probably a worse situation than ever and Gary has been thrown in at the deep end.

“I don’t know if he will be aware of everything going on but knowing his character, I’m sure he will see it through OK.” Asked if the situation could affect Celtic bringing players to the club in the summer, Lennon said: “I don’t think it helps.

“I am not sure many players look at other clubs in Scotland. When they are coming here they look at what we can offer them in terms of, ‘You are going to play in a championship [winning] team and you are going to play in the Champions League and you have the chance of winning silverware’ and I think that preoccupies their mind more than anything else.”

Taken from telegraph.co.uk