Broken Hearts

[Yngwie]

Chickens are coming home to roost in Gorgie.

http://www.bbc.co.uk/sport/0/football/20241385

Fairly dramatic language being used, and quite a turnaround from last week's claim that "Administration is not on the agenda".

£450,000 owed to HMRC who have now a lodged a winding-up order. So they are basically bust even before taking into account the £2m HMRC are claiming with regard to undeclared PAYE.

It's Rangers all over again.

[caley100]

They might have to sell some players before saturday..... heh heh heh

[Yngwie]

I hope the firm that runs their team bus is demanding cash upfront.

[Scotty]

if nothing else, their officials and players will surely be in turmoil and perhaps not mentally prepared for Saturday .....

I don't like to see players, staff and fans suffer for the actions of those who make these types of decisions in respect to taxes (even 'most' Rangers ones) ... but as an ICT fan, I hope we can take full advantage of any lack of preparedness on the part of HMFC

[PaderbornCaley]

We only have 1 home game against them this season. So if they go bust, we get the money from the gates. Teams that are still to play them at home will also lose out if they go bust. Maybe as a show of defiance they will sell out the away end on Saturday?

County haven‘t played them at home yet. Uncle Roy will be seething. Pleasing.

But in all seriousness I hope they get themselves sorted.

Do they still own Tynie?

Edited November 7, 2012 by CapitalCaley

[starchief]

Maybe with two big clubs in Division Three, Scotland might sort itself out.

:lol:

Almost fooled myself there.

[PaderbornCaley]

I hope we get drawn against Hearts in semi final ;)

[old caley girl]

I know this was coming but kinda sad! Hearts is my favourite away day by far. We need to best them on Saturday tho and be wary as adversity has spurred them on in the past!

Edited November 7, 2012 by old caley girl

[PaderbornCaley]

Lynne are ya drunk? ;)

[old caley girl]

Lynne are ya drunk? ;)

Ha ha ha! Nooooo I'm not. I know it's double standards but I don't want hearts sent to the 3rd division like sevco. Of course I want to thump them on Saturday and draw them in the cup.

[PaderbornCaley]

Ahh but you‘ve edited yer post! Now I look silly.... ;)

[old caley girl]

Ahh but you‘ve edited yer post! Now I look silly.... ;)

Ha ha ha! Yes admit I didn't phrase what I meant quite right!

[Kingsmills]

Tend to agree with OCG. We could be facing a wounded animal on Saturday. Teams in that sort of situation often produce at least a single defiant performance in the face of adversity. A bit like new manager bounce.

[Laurence]

Apparently their big problem is their enormous wage bill

They re not allowed to make players redundant. They could of course loan out players

I wonder if we could use one or two of them , maybe we couldn't afford them? But in true football manager game stragegy we could offer a lower wage.

In eight days time the administrator may release them anyway?

Div 3 here comes another big gun, or jam tart?

I don't think the Inverness goal machine as any thing to worry about on Saturday.

Edited November 7, 2012 by Laurence

[+DoofersDad]

Why on earth would we want to pay for any of their players to come here on loan!

[IBM]

I am sure Baron Foulkes of Cumnock could sell a couple of bookcases that he bought on expenses and make a generous donation to his old club!

[Laurence]

Why on earth would we want to pay for any of their players to come here on loan!

Just thought there might be a bargain that's all. Our bench is a bit shallow. But if none of them are worth it, fair enough. It is sometimes good business to cash in on a rivals misfortune.

[+Tree]

I see that they are looking to raise £2m to get to the end of the season. But then what?

Even if they reduce their wage bill at the end of the season, they are still almost £50m in debt to UBIG. There is a real danger that the fans are simply throwing money away to address a short term cash flow problem whilst leaving the root cause festering away in the background.

[Yngwie]

Whilst it is understandable and admirable that fans are willing to put money into Hearts, it is a very irrational investment decision. Even if they raise £2m to get them through to the end of the season and then cut their ludicrous wage bill, they still have crippling debts and the HMRC claim for £2m undeclared taxes.

And if the share issue succeeds, the new investors only get 10% of the company, meaning that it is being valued at £20m! The company is worth the same as Rangers was, £1 at the most.

If I was an investor I'd wait til the liquidation and then put money into the newco. Sevco 5089?

Edited November 9, 2012 by Yngwie

[starchief]

I see Charlie Mann is saying Romanov has done his bit by putting in £60M. The way I see it, Romanov has crippled them with debt by putting in unsustainable spending.

Who could have predicted Romanov would have bankrupted Hearts?

Phew! That many? Ok, anyone not? No-one??

[KingBeastie]

I am wary of playing them on Saturday now, however I am very sure that so will Terry & Mo and they will have stressed this to the players.

Onwards and upwards... Terry & Mo!!

[PaderbornCaley]

Hearts are staying in Kingsmills tonight. HOHO Hostel would have sufficed

[IBM]

Hearts are staying in Kingsmills tonight. HOHO Hostel would have sufficed

With their finances just now they should NOT be staying overnight! I hope they are paying cash up front.

[CaleyD]

Talk of another Rangers situation is just hype....and the situation is quite a bit different. For a start, they only have debts equating to something like £15 million (if you include what is being claimed by HMRC).

If Hearts go into administration then they are deducted 17 points (based on new rules put in place over the summer)....they would not be sent to Div 3. That only happened to Rangers because they moved the club into a new company.

Here's what I think might happen........

1. Hearts will go into administration.

2. That allows them to, legally, get rid of all the high earners....or renegotiate lower salaries.

3. Those owed the most (Romanov) will force through a CVA agreeing full payment.

4. Hearts will exit administration and continue as before till the end of the season...perhaps with a couple of million in the bank from the Share issue.

5. All of the above will happen prior to end of January, allowing them to then sign a player or two in the window....on lower wages.

6. They will avoid relegation because Dundee are so far behind everyone else in the league.

All the "cry for help" stuff is just playing to the fans and press to cover up the fact they are playing the system.

[MarkD]

Hmm, interesting. Where's the £60m Romanov claims to have sunk into the club, is this not a debt also? And who owns Tynecastle, and is it mortgaged to Romanov's bank? If the above is their plan, they'd better stop donating 3 points to Dundee each time they play them!