MP voices fears for Hearts rescue as SPL impose transfer embargo

The MP leading a fan-backed bid to buy Hearts claims the lingering uncertainty over the club's Lithuanian owners could hamper their rescue efforts.

The cash-strapped Tynecastle outfit was today hit with an immediate transfer embargo by the Scottish Premier League after admitting they could not afford to pay their players.

The news came just 24 hours after the Gorgie board released a statement saying they had entered a "critical" stage in their battle to pay off debts of £25million as well as financing tax and running costs.

The entire Jambos squad was put up for sale in a desperate bid to raise the reported £500,000 needed to see the club through to the start of the new season.

Politician Ian Murray is leading the Foundation of Hearts supporters group who hope to buy the club.

But the Labour man admits that the current situation at UBIG - which owns a 50 per cent stake in the club - and 29.9 per cent shareholder Ukio Bankas has "muddied the waters".

Both firms were formally controlled by club Vladimir Romanov but are now in the midst of being declared insolvent by Kaunas-based authorities.

Ukio Bankas -which lost an appeal against liquidation on Wednesday - is due £15m by Hearts, who also owe another £10m to UBIG.

Murray said: "Let's be clear about who owns the club at the moment - it has absolutely nothing to do with Mr Romanov.

"UBIG has had all its assets frozen and has told the Lithuanian government it can't meet its liabilities. So they will be controlled by a third party shortly. And Ukio Bankas is now in the hands of a Lithuanian administrator. So the decision on the sale of the club is no longer in Mr Romanov's hands.

"I'm reluctant to get into a blame game with all of this as the overall debt level of the club is exactly the same as when Romanov first came over.

"I'm in a constant dialogue with the Ukio Bankas administrator but there has been no formal appointment for UBIG. That only muddies the water. Any deal we can do with the Ukio Bankas administrator has to be on the condition that we take control of the club. But the controlling stake lies with UBIG, and the ownership of that company is still in flux."

Hearts were already the subject of a transfer embargo after Her Majesty's Revenue and Customs were forced to launch legal action over an unpaid £100,000 tax bill.

The majority of that sum has now been paid but the club continues to struggle with cash flow, leading to today's announcement by the SPL that "a number" of first-team figures were not paid on time.

The league said in a statement: "The SPL has been informed by Heart of Midlothian FC that the club has failed to pay a number of its players on time today. This is a Remuneration Default in terms of the SPL Rules and the Club is therefore subject to an automatic transfer embargo while that Remuneration Default continues.

"The actions also indicate a potential breach of SPL rule A6.21 and a disciplinary hearing will be convened in due course."

Murray, who will address 300 fans at Tynecastle meeting tonight, insists his group's bid is the best hope for the stricken capital club.

The FoH have already signed up more than 4,000 fans pledging between £10 and £100 a month to back their effort and hope to lodge an offer by the end of June.

"There has been speculation about other bids and people have spoken about a Scandinavian group being a tangible way forward," he said.

"But it seems to be some speculation as to whether they actually exist. I spoke to one person who claims to be their frontman. But it took over two weeks for him to return my call. When I did speak to him, it was 'if, buts and maybes'.

"Until someone opens their chequebook and enters into serious dialogue it will all just remain speculation. However, we feel we are ahead of the game because we are ready to go."

He added: "The fans have been through the mill since the 70s. With the exception of a couple of one or two years, the finances at the club have always been pretty precarious.

"This is now an opportunity to get the fans in control of the club so they can put the secure the long-term future of the club.

"But that's not to say we won't support anyone else who wants to come in and run Hearts as a going concern. That would be absolutely fine and we would support anyone that has the club's best interests at heart.

"But we're not sure many people [interested in buying the club] have that at the forefront of their thoughts."

Taken from the Herald