Hearts debt mounting

Since Vladimir Romanov took over last year, Scottish Hearts of Midlothian's debt increased to GBP 28.4 million in the past year, with Hearts posting a loss of GBP 5.2 million for the fiscal year ending July 2006.

Hearts midfielder Paul Hartley was recently sold Scottish Celtic for GBP 1.1 million and may sell keeper Craig Gordon next summer.

Due to an increase in attendance at home matches, up 34 percent for domestic and cup competitions compared to the previous year, revenue at Hearts exceeded GBP 10 million for the first time in the club's history.

The Hearts' second-place finish in the SPL and its win over Gretna in the final of the Scottish Cup last May also contributed to an increase in commercial income.

Hearts benefited from the transfer sale of Rudi Skacel to English Southampton for GBP 1.2 million, along with the elimination of GBP 2 million of debt by UAB Ukio Banko Investicine Grupe's, a company controlled by Romanov.

A rise in salary costs of GBP 10 million, compared to GBP 4.5 million in 2005, accounted for most of the pre-tax loss of over GBP 5 million, compared to GBP 2.7 million in 2006.

A statement on the official club website said that the loss is in line with what the board of directors expected, with financial demands and debt continuing to have the financial support from the main shareholder, UBIG.

The Hearts board thinks that the current levels of debt will remain within reason and will probably be reduced through participation in European competition, and due to wages not likely to increase in the future.

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.