Transfer embargo kicks in as Hearts fail to pay wages

THE Scottish Premier League have imposed a transfer embargo on Hearts for failing to pay a number of players' wages on time.

The sanction means the Tynecastle club will not be able to register new players until they have settled all outstanding sums owed. Hearts will also now face a disciplinary hearing relating to a potential breach of SPL rules relating to renumeration default, with an array of sanctions available to the governing body including a fine or a further transfer embargo.

The decision casts into doubt Hearts' intention to sign Danny Wilson on a three-year contract once the defender becomes a free agent on July 1 as the club have yet to lodge his registration with the Scottish Football Association.

The SPL statement read: "The Scottish Premier League 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."

SPL rule A6.21 reads: "Except in circumstances where there is a bona fide dispute as to liability for payment by the club, where the club is entitled to deduct or otherwise withhold payment of a sum otherwise due or where the club takes, suffers or is subject to an insolvency event, any club which shall fail to pay any sum due by it to a player under and in terms of that player's contract of service and/or any sum due by it under a contract of employment to any club official engaged in football management and/or football coaching [a "remuneration default"] shall be in breach of these rules."

The decision comes on the back of Thursday's announcement that the club were making every player available for sale to try to help ease their crippling cashflow problem. Hearts are thought to need around £500,000 to pay wages and meet their tax liabilities over the summer, a sum that could be covered by the sale of an additional 2000 season tickets. Her Majesty's Revenue and Customs are pursuing a winding-up order relating to an outstanding PAYE bill of £100,000 – half of which is understood to have been settled already – while there are other substantial payments due this month and next relating to a previous tax dispute.

Hearts had appeared to be critical of their supporters in their statement

Taken from the Herald