Vladimir Romanov's UBIG pledge commitment to Hearts

Published on Tuesday 15 December 2009 22:22

HEART of Midlothian supporters have been assured that Vladimir Romanov remains fully committed to the club and is actively pursuing options to further reduce the debt at Tynecastle.

In an interview, released in a question and answer format prior to the fifth anniversary of Ukio Banko Investicine Grupe (UBIG] taking a majority shareholding in Hearts, director Sergeyus Fedotovas delivers a timely message to supporters concerned by the majority shareholder's absence from the club.

Fears over Romanov's continued interest in affairs at the club have been raised by his rare attendance at games. Romanov is more likely to be found watching Zalgiris, the Lithuanian basketball team he purchased in the summer. He was last seen in Edinburgh on a flying visit at the start of November. The team's current position in the bottom half of the Scottish Premier League has not helped the mood at Tynecastle.

Although Romanov is not mentioned by name in the pre-Christmas letter, sent to all registered supporters via email, Fedotovas insists the club remains in good hands. He expects the next set of annual results, which will be issued in the early part of next year, to "demonstrate significant savings in key areas". Hearts manager Csaba Laszlo has been denied funds to improve the team and has watched such key players as Christophe Berra leave the club. Three teenagers were among the ten players who finished Hearts' last match, a 0-0 draw with Dundee United.

Laszlo is not mentioned in the dispatch, and neither is the team's current eighth place standing in the SPL. But Fedotovas emphasised that off the field Hearts are well positioned to manage the currently challenging economic conditions. He points out that Ukio Bankas, the club's bankers, "remains profitable, unlike most others in (the] UK and elsewhere in Europe".

Fedotovas calls it a "fact" that UBIG is "100 per cent behind the club and its future development plans" and states that the club remain intent on redeveloping Tynecastle Park. He also airs the possibility of another 'funding-for-equity' deal being offered by UBIG in an attempt to further reduce the club's debt from an estimated 31 million. The last such conversion of debt into shares, approved at last year's extraordinary general meeting, saw 12million removed from the club's debt.

"At present we are considering and assessing plans for a further funding- for-equity deal which is realistic," said Fedotovas.

The director plays down concerns about the size of the existing debt at Tynecastle and explains that, since the money is owed to the parent company, it is not considered to be 'real debt'.

"The key fact, that sets Hearts apart from many other clubs, is that our debt is in the form of funding from our parent company Ukio Banko Investicine Grupe (UBIG]," explained Fedotovas.

"Our positive funding arrangement that it is our own Group that finances Hearts and not external financial institutions," he continued. "We therefore do not consider this as 'real' debt – in simple terms, we owe the money to ourselves as Hearts is owned by UBIG. This positive funding arrangement provides security of funding for the club and, in turn, this allows us both to weather the current challenging economic conditions but, most importantly, develop the business for the future.

"The club does not pay the interest on the debt, just accumulates it – it shows that the owners are not profiting from the club."

Fedotovas indirectly addressed Romanov's absence from Gorgie and ensured fans that the presence of those such as himself on the board was an indication of how much importance is attached to the club by the owner. Fedotovas is one of Romanov's most trusted aides, and was named acting chief executive in February 2005. He was also assigned the responsibility for the development of Tynecastle. This, he assured supporters, remains on the agenda, although his comments did not suggest any movement on this front was imminent.

"We are working to deliver an investment solution that will allow us to generate a profit for the club from an enhanced stadium which provides the best spectator experience," he explained.

"We continue to envisage a redeveloped Tynecastle which provides great benefits to the club and its supporters. External funding is not a necessary element of our future strategy but we remain open-minded about partnership opportunities that will help develop the club. We are currently assessing certain investment options and we believe that we are making good progress in this area."

Fedotovas reflects on the five years of ownership by Romanov, and claims the club have been "deprived" of success. Romanov has long railed against what he believes to be pro-Old Firm bias in Scottish football, with referees often targeted for his criticism.

Fedotovas also touched on the recent bonus row which saw players complain of unpaid payments dating back to last season. He said bonuses were paid – when they were deserved. "In the five years we have been at the club and we have achieved some success and at some times were deprived of success, but at all times we remain committed to the club," he said. "If you look at the board of the club, closest representatives of the owner are there and it shows the level of importance and commitment.

"Since we came in the financial situation has been solid," he continued. "All payments are ok at the club. The players are paid for five years since we have bought the club and the bonuses are paid when the team deserves a bonus."

Fedotovas did include one veiled threat when contemplating the future. In order to count on the continued support of UBIG the Hearts fans have to be realistic.

"Hearts enjoys an excellent relationship with UBIG and as long as Hearts maintains a focus on operational efficiencies and progressing the club in business development terms then we can look forward to many more years of support from the organisation," he said.