Administration looms for Hearts in the summer if a £2.5million black hole isn't filled, warns club director

Gary Ralston

SERGEJUS Fedotovas outlined to 250 shareholders yesterday ways of raising the money but warned administration is a real possibility.

HEARTS admit they need to plug a £2.5million funding gap just to break even next season.

Now a leading shareholder has warned administration is looming in the months ahead, even if parent company UBIG stay in business.

Hearts director Sergejus Fedotovas told 250 shareholders at the club’s AGM yesterday they must bring in at least £1m from player sales next season.

He also revealed the club hope to launch a “members’ scheme” to raise a further £1.5m to bridge the gap between turnover and spending.

Fedotovas was vague about details of the scheme which must raise £500,000 more than the share issue in December that kept the club afloat. He said: “We are budgeting very carefully, planning for a small level of income and basic results and we’ll take it from there.”

But Bill Alves, chairman of the club’s shareholders association, raised concerns about the money-making potential of a membership scheme and said he feared the club would be dragged under due to Vladimir Romanov’s cash woes.

He said: “I have my doubts about the scheme.

“It’s a worrying time and administration is a real possibility this summer. The club have payments to make and if we don’t make them we’ll be in trouble.

“There is also a £25m debt to UBIG and Ukio Bankas to be financed. If the status quo remains? We’re looking at administration.”

Meanwhile, the Scandinavian consortium hoping to buy Hearts are to open talks in Lithuania aimed at doing a deal to clear the debt.

A source close to the group said: “The club would be taken on without any debt but that’s going to take a cash payment to achieve.”

Taken from the Daily Record