Fears growing as Hearts delay wages again

Published on Tuesday 23 September 2008 23:40

SERIOUS concerns about the financial outlook at Hearts are growing after it became clear all the club's staff would now have to wait until Friday to be paid overdue wages.

Players are still waiting for the week's wages which should have been paid into their bank accounts last Friday. Now backroom staff at the Tynecastle club – who, unlike the players, are paid on a monthly basis – have been told they must also wait until the end of the week to receive their wages. These were due to be paid today, but anxious staff learned yesterday this would not be the case.

It is the players' situation which first led to suggestions of financial difficulties at the club. Hearts defeated Inverness 1-0 on Saturday after it emerged players had not been paid.

In a short statement released last night the club promised to resolve the situation by paying both last week's and this week's wages into the players' accounts at the end of the week.

"The club will pay the players' wages for last week in full at the end of this week," read the statement. "They will be paid with the current week's wages on Friday." The news is a departure from a club spokesman's assurance over the weekend that the players would receive their outstanding money "early this week". He said a "technical hitch" had been to blame for the delay. "The funds are there, they have just not been processed yet," he added.

No reason for the new delay was provided in yesterday's statement, nor was there any indication of what the 'technicality' was. Fraser Wishart, chief executive of the Professional Footballers' Association Scotland, spoke to Campbell Ogilvie yesterday and reported that the Hearts managing director is confident the monies would be paid on Friday. "Hearts have assured the players that they are getting paid and that's the end of it for the moment," said Wishart.

There is, though, an atmosphere of uncertainly in Gorgie. Director Sergejus Fedotovas was in Edinburgh yesterday in an attempt to ease the unrest which has grown among employees.

Wishart was standing by yesterday as speculation grew about the financial situation at the club. The backdrop of global economic uncertainty has not helped ease fears about the club's future. It is unclear whether UBIG, the banking group in which Hearts owner Vladimir Romanov has a controlling interest, has been hit hard in the present climate. It was reported last month that Romanov's bid to open an Edinburgh branch of his bank Ukio Bankas had been stalled by the credit crunch.

Hearts' last accounts disclosed net debt of 36.25 million. July's approval of a debt-for-equity conversion will reduce the figure by 12 million. However, the club remains exposed to risk amid the present turmoil in the international markets and the onset of a global banking crisis.

Wishart was able to speak with Ogilvie yesterday afternoon and said he had been encouraged by what the Tynecastle managing director had to say.

"I have been told there was an issue with getting money transferred from Lithuania." said Wishart. "Campbell was quite happy with the situation, and he assured us the players would be paid. We are happy to hear the players will be paid on Friday. This is good news, especially for the younger players, who don't earn as much money."

However, no-one is taking anything for granted until the money appears in employees' bank accounts on Friday. If this does not happen, the club will have a crisis on its hands.