Hearts could lose £500,000 if Rangers go into administration
HEARTS could face losing out on a substantial chunk of the £800,000 due for last summer’s transfer of Lee Wallace to Rangers if the Glasgow club goes into administration.
Rangers, who yesterday began the process of entering administration by lodging papers signalling their intention to do so at the Court of Session in Edinburgh, bought the Hearts full-back in July of last year for a fee of £1.5 million. It is understood the deal was split into three different instalments, the first, a fee of £700,000, was paid when Wallace made the move to Ibrox.
Hearts, however, are still due £500,000 this July, and a subsequent £300,000 next July. Those payments are now in serious jeopardy as Rangers’ financial affairs take a turn for the worse. If the Glasgow club were to enter administration, Hearts would almost certainly face a delay in receiving their money, as administrators would take time to analyse the amounts owed to Rangers’ creditors.
If Rangers agree a company voluntary arrangement (CVA) with their creditors, there would be a risk for Hearts that they would only receive a fraction of the funds owed to them. Should the Ibrox club go into liquidation, Hearts may not receive any outstanding funds.
Last month, Hearts made a proposal to Rangers, in which the Tynecastle club were willing to shave off up to £100,000 from monies due in order to receive £700,000 from the current SPL champions immediately. This arrangement was proposed for the benefit of both parties. However, the Evening News understands that the offer was met with little enthusiasm by officials at Ibrox.
Hearts have also been afflicted by cash flow issues, culminating in three consecutive months of failing to pay wages on time. The club also faces an £150,000 tax bill that must be paid by Thursday to escape a winding-up order, although the club are confident this will be settled.
Directors are expected to meet and discuss the Wallace transfer money once the dust has settled at Ibrox although, with the club not due the first instalment until July, Hearts have not banked on the funds arriving any sooner.
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Comments
There are 113 comments to this article
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Hen Broon
Wednesday, February 15, 2012 at 09:49 AMMAGNIFICENT....thanks 1902..... the bitter wee ar$ehole is not bright enough to work out that the word GENUIS negates any bigotry. His bitterness does not allow him to recognise that I accept that coloured is now non PC & i will cease using it. TIGHTFISTED then adds cream on the top by ripping the silly wee laddie apart & deeming him a JAMBO! No wonder he took his leave. Thats Harbour & Tightfisted ....two comrades in arms....called him as he is in the same mounth. What a phanny!
vladhibs
Wednesday, February 15, 2012 at 02:13 AMRef was maroon
Oz Rules
Tuesday, February 14, 2012 at 11:40 PMre 27 Don't call me geezer... liquidation and administration are two completely different outcomes. If your creditors agree to the administrators offer then all will go as the average rangers supporters hope. If they do not then liquidation beckons. This means all assets including Ibrox would be sold. I hope the rest of Scottish football has the same sympathy for RFC as their supporters would have for Aberdeen, Dundee United, Killie, HMFC,, etc, etc
Hammy1874
Tuesday, February 14, 2012 at 10:48 PMTightfisted.... penalty? what, like the win MrCoke secured earlier this season? Enjoy the dogfight with the Pars.
Hammy1874
Tuesday, February 14, 2012 at 10:46 PMOn a footballing note...... Hearts show yet again tonight what character and togetherness is. YAK wont understand this, as, his world is all about sarcasm, hate, vitriol and envy. GIRFUY.
Hammy1874
Tuesday, February 14, 2012 at 10:44 PMHa Ha Ha... I have tried to give Yak the benefit of proving himself to be an erse all on his own for the last two weeks, and, guess what?? He has shown his racist underbelly yet again. If we wait long enough he will descend to bigoted and homophobic abuse as well... its his way. Seems like he is a bit rattled at being found out, yet agin.... not there are no "toodle pips" at the end of his driveling posts. YAK.... the biggest bigot and racist on these threads.
since1902
Tuesday, February 14, 2012 at 10:26 PM102 Vladhibs What ? You love to see the Jambos scrape through with late goals ? Or did you just shoot your mouth off too quickly
Portsmouth 657
Tuesday, February 14, 2012 at 10:26 PM#102 Carlsberg Tuesday
Uncle Tam
Tuesday, February 14, 2012 at 10:23 PMGlorious Hearts!
Weel Kent Jambo
Tuesday, February 14, 2012 at 09:52 PM56% possession to the JTs - we're humping them 1-1
Tightfisted
Tuesday, February 14, 2012 at 09:46 PMLast minute penalty?? Not according to the BBC Sportsound commentators................and what with the Jambozo tenedency to go home after an hour...there will be few on this thread tomorrow who could argue differently,........ ......................Eh Moochachos???? TEE HEE HEE !!
vladhibs
Tuesday, February 14, 2012 at 09:35 PMcarlsberg tuesday
Weel Kent Jambo
Tuesday, February 14, 2012 at 08:56 PM#95 So if Vlad is not funding us then where do you think the 150k to pay the tax man came from? He'll do whatever he needs to do to protect his own interests and it is very much not in his interests to allow Hearts to fold. Whatever you spent it on (white elephant stadium or whatever) you ran and are running at a loss.Lastly under the SPL rules I believe we will get payment for Wallace - we shall see. And just for good measure we did actually turn in a trading profit in the last financial year.
busbyfth
Tuesday, February 14, 2012 at 08:11 PMFor those taking the high ground as far as determining what black people did~do and idn't~don't like to be called...........In the sixties and early seventies they were not pi55ed off with the term "coloured" at all.......they preferred to be called "negro" and definately NOT "black"....................A few years later and sentiment changed................."negro" was as near as damn outlawed and "black" was the expression of choice---------basically they changed their collective minds (America kicked it off of course) Makes you all correct - maybe just timings slightly off.........................Now how about that for harmony ?
busbyfth
Tuesday, February 14, 2012 at 08:04 PMFor an ALLEGED astute businessman (VR)I was shocked when I found out that Vlad had stupidly areed to an installment plan. Everyone and their dog knew that Rangers were at the very least angling for administration. And no that's not hindsight, as my posts of last August to November will testify. ......................Just curious - where is the Jelavic money booked ? Maybe it's through the books as plainly payment for sale of asset - maybe it's ring-fenced so no one else can get at it - legitamately of course................I was surprised when Vlad dealt with the Govan lot in the first place.......did he trust them after Ritchie, Webster and Velicka ? One last query - why did they sign Cousins just days before the decision to go into administration and hand the league to Celtic ? Totally baffled !,,,,,,,,,,,,Suppose in a rye way - the last laugh "league wise" is with Rangers fans (their only SLIGHT bright point) - what celebrations can celtic fans have with this totally hollow victory ?Talk about a potential party falling flat.
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