Hearts propose higher borrowing limit

Scottish Hearts announced it has a total debt of GBP 28.4 million for the fiscal year ending July 31, but even though that is higher than the maximum allowed, it is known that all debt does not come under the borrowing powers of the directors.

At the annual general meeting, the club will ask shareholders to approve an increase in the board's borrowing power, doubling the amount from GBP 20 million to GBP 40 million.

Since Vladimir Romanov owns more than 80 percent of the shares, the motion is expected to pass.

The club will not be increasing its debt by GBP 20 million but wants to be able to pay for ground redevelopment, among other things, over the coming years.

The land purchase alone will cost almost GBP 6 million, while the building of a new main stand, which is in the first phase of rebuilding Tynecastle, may cost up to GBP 20 million.

Romanov planned to redevelop the ground even before he bought Hearts and there is not likely to be much resistance to the motion.

"It is necessary to get the ground redevelopment under way," said Derek Watson, of the Hearts Supporters Trust. "They can't do it without money. To make progress they're going to need to increase their borrowing."

The motion calls for the relevant Article of Association of the club to be revised by substituting GBP 20 million to GBP 40 million.

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