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Delays and debt fuel fears over stadium

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Published Date: 14 April 2008
SENIOR figures on City of Edinburgh Council are casting doubt on Hearts' ability to press ahead with redevelopment of its stadium, The Scotsman has learned.
Councillors and officials are said to be "increasingly concerned" about the club's ability to deliver its side of a complex deal needed before a new-look Tynecastle can be given the go-ahead.

Insiders say a series of delays over the submission o
f a planning application for a new 10,000-seater main stand and other commercial facilities – coupled with fresh revelations about the club's mounting debts – have left huge question marks over its feasibility.

Senior councillors are understood to have been left "furious" after the club suddenly delayed its proposed start date because of the knock-on effect on a children's nursery.

Plans for a £50 million development which would boost the stadium's capacity to 23,000 and make Tynecastle Scotland's fourth biggest football stadium were unveiled in August last year – seven months after councillors agreed to sell off three sites needed to allow the club to expand.

The council has to temporarily relocate the nursery, one of the three sites, to the other side of the stadium to allow Hearts to start work .

But it also needs Hearts to pay about £2 million to remove – for health and safety reasons – whisky stored in bonds at a neighbouring distillery before the entire scheme can proceed.

Hearts had told the council and its fans of its intention to start work on the stadium in the autumn and for the new ground to be completed by the start of the 2010-11 season.

However, the club failed to lodge its planning application until January – a year later than originally envisaged.

And in March the club told supporters it would not now be pressing ahead with the redevelopment until summer 2009 at the earliest – delaying the entire timetable by another year. Within days it emerged that the club's debt had reached £36.2 million.

It is understood the council believes it was "kept in the dark" about the delay and senior figures within the authority are believed to be unhappy at the club's handling of negotiations.

One senior councillor, who asked not to be named, said: "We have a number of concerns about the proposed redevelopment of Tynecastle, not least the way the club keeps putting back the timetable for the work."

A spokesman for Hearts said: "The club is on track."



The full article contains 412 words and appears in The Scotsman newspaper.
Page 1 of 1

  • Last Updated: 13 April 2008 9:47 PM
  • Source: The Scotsman
  • Location: Edinburgh
  • Related Topics: Heart of Midlothian FC
 
1

Guiseppe Tortolano,

14/04/2008 01:22:58

I believe there is a typo at the end there. It should read "The club is on crack."

I thought the cooncil was full of jambos, anyway?
2

big is the new small,

everywhere 14/04/2008 04:50:40
i'll remove the whisky for nothing if it speeds up the process............
3

Tatties ower the side,

Johannesburg 14/04/2008 05:13:05
One senior councillor,..."We have a number of concerns ....the club keeps putting back the timetable for the work."

A council pushing planning permission ahead while the applicants are dragging their heels. Is this an April Fool joke?
4

JamboJambo,

14/04/2008 06:05:25
I smell some Hobos about to appear!
5

Pilrig.,

Livingston 14/04/2008 06:07:55
tic toc..tic toc...
6

Eggert,

Edinburgh 14/04/2008 06:33:35
As a jambo I think pressing ahead with this is crazy. Will put into debt of nearly 100 million which beggars belief!

7

Anecdotal,

Edinburgh 14/04/2008 07:39:51
Another slow news day so the Hibsman has another doom and gloom article about Hearts. Why did it take the Council so long to realise the timetable had slipped? Their own greed in trying to get Hearts to fund part of the Tramline that will pass nearby doesn't help the club's finances that they are so worried about.
8

Mikey07,

14/04/2008 08:10:01
"A slow news day" eh? Get your head out of the sand.
9

flecktimus,

14/04/2008 08:45:30
# 9 Is this case of the Tea pot calling the kettle black.

Question - Why cant Hibs build a hotel complex around there shiny new stand.

Answer - Because they sold the land to TF who in turn made money by building flats.

WHAT !!!!!!!! Someone making money of the back of the Hibs support. Get real.
10

Toast,

14/04/2008 08:52:37
Romanov is a fantacist,whare's the bank,where's the Champions league,where's the SPL league championship,where's the hotel. Wake up Hearts fans,it is all "smoke & mirrors".
11

Newcastle Jambo,

14/04/2008 09:25:47
I've always said this is total pie in the sky. They have already squandered over £1m on a project that has no hope of getting off the ground.

Apart from Romanov's family members and assorted lackies have no ability to deliver a letter let alone a £50m project, the council will in any case never give planning permission for a hotel and flats on land they sold cheaply on condition that it was used to build a new stand.

The fact that both the police and the local residents have already tabled objections would seem to leave it without hope anyway. My guess is that the council will come back and say you can build a stand and nothing else and that nothing will then happen, other than Hearts debt continuing to rise (in directly relation to Romanov's personal wealth).
12

Leith team,

Leith 14/04/2008 09:27:37
#10

Are you having a laugh?

Why would we want to build a hotel in our "shiny new stand" ? When did we ever say we were going to build a hotel? We are a football club fool...

Think you will find our owner and the clubs holding company sold the land at exactly the correct time to maximise selling potential thus wiping around ten million from our debt. That will be why we are pretty much debt free because we are run in the correct manor by the correct people for the correct reasons.
I'd call that a shrewd piece of business,wouldnt you?

How cany any Hearts supporter even begin to think about pointing fingers at other clubs owners for shafting fans or have a go at other clubs fans for being naive??

I really dont want Romanov to screw your club too much as I have good friends who support Hearts,but idiots like you change my whole outlook..

Hope you enjoy your rude awakening Mr Yam !!

GGTTH!
13

SPL PERSISTENCE PAYS OFF,

14/04/2008 09:44:36

Well, Well...........another dream turning to dust?
Let's just sit back and feel the pain of the "it'll be alright on the night" brigade as yet another fairytale unravels before our eyes.
It's the Jambos worst nightmare really, some MIGHT even decide to get off their erchies and see what they can find out for themselves....Oh, wait......they're jambos...no chance...Eh Muchahchos?
14

flecktimus,

14/04/2008 09:51:19
# 12 Big Rob it is not a Hibs/Hearts thing, football fans all over the Uk are getting stuffed left right and centre.We are just a money making machine for all club owners.
Eg Liverpool,Man Utd,Chelsea all these clubs where bought then refinanced and made there owners a nice little amount of money.

For you to come on here having spouting about Vlad making money is a joke.

He that lives in glass houses should not throw stones.

Quetion-Who owns your lovely new training ground.
15

Newcastle Jambo,

14/04/2008 09:52:59
#16 You are so wide of the mark. Hearts exist to make Romanov money, end of story. His approaches to this would seem to be:

1. Dramatically increase the debt (make money from interest payments to his bank)
2. "Own" players contracts - creaming off a cut of over-inflated salaries and making money by selling them on
3. Sell off land bought on the cheap from the council for tens of millions to a hotel chain and a propert developer

The priorities are so far removed from having a decent team - that would be a nice bonus as more money could be made but it certainly doesn't seem to have been the priority since Romanov took full control in Oct 2005.

16

SPL PERSISTENCE PAYS OFF,

14/04/2008 10:00:06
#16 CATH JAMBO
Breakin' ranks in the campaign then CATH....(don't worry, so did yer sad leader VICTORIAN...and as for the CORGY.....he's swingin' fae his cybergarage roof)
Yeah, yeah, yeah....like the Scotsman has just joined the weegie press in slagging off Hertz for nae guid reason. EVERYBODY has it in for hertz, SPL/SFA/UEFA/Edinbugh Cooncil/Glesca Polis/Sellik Stewards/Gorgie neighbours/Referees/Other SPL players/....the list goes on.
.........but WE'RE the paranoid ones ain't we??
....Eh Muchachos???
17

The Wookie,

Edinburgh 14/04/2008 10:04:26
"A senior council spokesperson who asked not to be named"....Read into that - Brian Ferguison made that bit up....

9# - Morning Big R - With regard to the Chelsea bit...they are run the same as Hearts at present - Abramavich authorises the spending in the same way as Vlad does - both underwrite the club and can close them if they feel like it -

Remember last season Chelsea recorded a record loss in 1 year for a British company £80 million...and now are over £200 million in debt!!!

And I thought my teanm had problems
18

,

14/04/2008 10:07:55
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19

SPL PERSISTENCE PAYS OFF,

14/04/2008 10:10:09
#6 EGGERT

Well said sir.
I think we've just seen the first Jambo reality check this spring...Eh Muchachos??
20

We love fitba,

google! 14/04/2008 10:10:17
We all know the drill now, don't we?

SCOTSMAN: "Hmm, all is not what it seems with this Romanov fella."
YAM: "Another pathetic non-story (see #16 ;-) ). Call this a newspaper?"
HOBO: "Tick tock."

Meanwhile, the liar and the thief goes about his business...
21

Lenny,

14/04/2008 10:13:35
# 22 Wookie

For once you were completely correct, your team most certainly does have problems ; )
22

GrahamL,

14/04/2008 10:23:13
#25 Are YOU serious?
Vlad has been in this to make money from day one, why else would he bother? The man has no affiliation with Hearts or Scotland - so why buy the club if there wasn't a profit to be made? He already has interests in several clubs, and I suspect they are all either turning a profit, or in the middle of a plan to ultimately do so.
He'll be looking at the whole picture - Hearts may not make a profit of themselves, but will UBIG, or Ukio, or other parts of his empire? We know he owns UBIG and has a major interest in Ukio Bankas, beyond that? How many other businesses is he running, and in what countries? Overall, somehow, he'll be making money across the whole empire, exactly how I don't know, but somehow and he'll expect this profit to be bigger with Hearts in there than withou tit. We have to acknowledge that, and he needs to realise that without a relatively successful Hearts team, his plans to move his bank into the UK aren't going to work. We're at a turning point here: will Vlad turn Hearts round, sort out the mess he's built up and put on us an even keel for next year? or will he cut and run - take the profit he's made so far and disappear into the sunset (well, sunrise as he's going east, but you know what I mean)?
23

SPL PERSISTENCE PAYS OFF,

14/04/2008 10:27:23
#25 CATH JAMBO

Well....that's not strictly correct.
In order for small bank UKIO to make the prospects and performance of the group LOOK a lot better....(it being really poor by bank standards with only £18m profit on the sweating of over £900M of assets) it could be that they'd be prepared, should the banking crisis deepen (and they are more vulnerable than most due to being a small player) to load LOTS of debt onto Hearts such that when any arm of the group has to be lopped off Hearts'd be a prime contender, as the debt goes with the amputation if they do it right. There is NO WAY that they'll allow Hearts financial failures to pull the group under. I'd LOVE to be wrong on this,(despite it all I do NOT wish Hearts to go under) but it really needs careful watching, and the sooner Jambos get someone from the financial sector on the case, the sooner you'll know the REAL story.
.............................. Eh Muchachos??
24

flecktimus,

14/04/2008 10:27:27
#20 Who said that i dont agree with NJ? I may I may not.
If you honesty believe that HFC board of Directors have your best wishes at heart please go and get some help.

I will repeat football fans are just money making machine pure and simple.

Training Ground- Not what i have heard.Hibs.net
25

Hans Eskillson,

Glasgow 14/04/2008 10:32:13
Dear Catholic Jambo,

You ask what's the story. Well, it's the combination of:

- £36 million debt for an insolvent and insignificant company
- additional £51 million+ debt to be financed
- teensy small bank that is in no position to fund the said investment
- credit crunch whereby banks are only investing in A+ opportunities, if at all
- hilariously, a crew of yams that adamant that the future of the club is rosy if only it would appoint a decent manager!

You couldn't make it up.
26

Lenny,

14/04/2008 10:33:06
# 30

Then who owns Hibs training ground then? Straw clutching this sounds like.
27

flecktimus,

14/04/2008 10:37:02
# No a very serious question being asked by Hibs Supporters
28

SPL PERSISTENCE PAYS OFF,

14/04/2008 10:37:34



How many times have Hearts been relegated Muchachos?
29

flecktimus,

14/04/2008 10:37:39
#32 the above
30

,

14/04/2008 10:38:37
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31

SPL PERSISTENCE PAYS OFF,

14/04/2008 10:41:21
#34 flectimus

Can any of this training ground ownership debate really hide the fact that Hibs have had a constant stream of new young talent coming through at regular intervals this past few years???...I'm no Hibby, but I reckon that ANY club in Scotland would be DELIGHTED with the fruits of those efforts...even if it DOES confirm what all of us already know....that EVERY club in Scotland is a "selling club"...Eh Muchacho?
32

GrahamL,

14/04/2008 10:42:48
#33 "ROMANOV IMO is an embarrasment to Hearts.After a false dawn he has taken us backwards.I remain 'hopeful' that he will correct his mistakes." That I agree with wholeheartedly.

The remainder, sorry, I still think vlad will make a profit out of his involvement in Hearts, be it from interest on the loan, sponsorship money, acting as a gateway in the UK banking market, selling Kauans players for higher fees, the hotel development, the merchandising, any interests he may have in players we're buying, etc.
Add to this that Vlads businesses have probably not paid a penny in tax since he took over Hearts (based on what people say here, ownign a football club is - on an accounting basis - a money losing machine) then I think he'll be doing very nicely, or if he hasn't so far, he will be soon. Personally, I prefer it that way, it's gives me some confidence that he's going to stick it out...
33

The Wookie,

Edinburgh 14/04/2008 10:46:48
26#...morning Len...

I think UBEG Group have the bigger problem.....One of their companies has been allowed to run up a debt that they will have to carry because the individual companies assets do not cover the debt.......unless of course they are planning to let to individual company's debt get to £50 million and own a stadium, conferencing facility and hotel pretty much in the centre of Edinburgh...and of course as you will know - They reccon that Edinburgh could use another 25 x 200 bedroom hotels to meet demand - and they only conference Centre avaialble in Edinburgh is the EICC...

Maybe i'm a dreamer - who konw's - They may decide one day to say enoughs enough and pull the plug - that is there perogotiove...

But there will always be a Heart of Midlothian
34

SPL PERSISTENCE PAYS OFF,

14/04/2008 10:52:05
#37 DARTH VICTOR

Campaign in tatters then VIC?? Hee Haww, Hee Haww !
Strangely, you're right about the absence of detail to this story, but when the club refuses to be up front with its own fans, what do you expect? Fact is that it's yet ANOTHER reason for Jambos to pull their digits out and get themselves soem SERIOUS financial assessment of the current position. Without that, the numbers (that none of us are expert in) will fly back and forth (indeed my own mates, seniors in this business, have been in stitches...almost "roll on the floor" stuff.... as they've read back some of the GUFF from both sides of this debate). However, the serious point to be made is that there ARE organisations out there who WILL provide a serious finacial profile and assess the validity of everything seen to affect Hearts on any balance sheet. I'm told that this isn't rocket science to these guys, but an element of even rudimentary organisation is needed by somebody/some of you to allow this to become transparent to the fan and public alike. Otherwise, stew in your own jambojuice if you want to...the rest of us WILL survive, (but we'd ultimately rather you were there with us).
...Eh Muchachos
35

SPL PERSISTENCE PAYS OFF,

14/04/2008 10:56:36
#40 CATH JAMBO

Proof??
(Campaign buster then Eh??)
....and didn't you tell us that you were finished with these posts?
Couldn't stay away Eh?.
Don't beat yourself up,they're coming back in DROVES.
......even VIC (the Che Guevara of jambos..Hee Haww) is back..
....Eh Muchacho??
36

flecktimus,

14/04/2008 10:59:20
# 43 I live in a house 10% is deposit 90% mortgade.

Question- Who owns the house?
37

SPL PERSISTENCE PAYS OFF,

14/04/2008 10:59:21
#43 BIG ROB

....only a jambo doubts it Sir
.............but then, they still believe in a Vlad salvation, flat earth, hamsters on the moon etc
..................Dontcha Muchachos????
38

,

14/04/2008 11:01:36
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39

flecktimus,

14/04/2008 11:03:38
#46 You are obviously an expert on Hotels and economics.

I will let you into a little secret but dont tell anyone.

HOTELS MAKE MASSIVE PROFITS.

Remember don't tell anyone.
40

,

14/04/2008 11:03:44
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41

,

14/04/2008 11:07:52
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42

,

14/04/2008 11:11:09
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43

,

14/04/2008 11:14:43
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44

Mikey Cabbage,

Edinburgh Council Planning Dept 14/04/2008 11:18:54
SPL PERSISTENCE PAYS OFF

Superb display of how to despatch a jambo.....

Class.

Keep up the good work, I am enjoying your posts.
45

flecktimus,

14/04/2008 11:20:23
# 54 Wrong-As a punishment you must be to the school of HOBONOMICS to get the answer correct.

46

flecktimus,

14/04/2008 11:22:07
# 54 Wrong-As a punishment you must be sent to the school of HOBONOMICS to get the answer correct
47

wee162,

Sunny Leith 14/04/2008 11:26:12
#50
You're correct. Some hotels do make very decent money.

For example the Caley was sold by Hilton last year. You know the Caledonian, it's a 5 star hotel with loads of top quality rooms, a location at the West End of Princes St in the heart of the financial district of Edinburgh, and with a great reputation.

Oh, and it cost £51.7m, coincidentally that's about the same price as the Jambo Loch Ness Monster Travel Lodge will be costing.

We Own The Capital
48

GrahamL,

14/04/2008 11:29:56
#46,49,50 Ultimately, if this hotel is built, there are 2 possibile scenarios:
1. It's run by one part of Vlads empire
2. It's sold/leased to a hotel chain
If it's the former, I'd be very worried, the latter then we have to assume that whoever is taking it on (be it Hilton, Travelodge, EasyHotel) understands enough about it that they can make money. To an extent, I don't see the appeal of a hotel beside Tynecastle. But then, there's one at the Wembley, and I don't see the appeal of that either...
49

Glorious Hearts,

14/04/2008 11:34:55
re #52, 53, 54 etc etc etc
What gets me about this guy is that he's on here every day, often late into friday and saturday nights, commenting on someone else's team.
And HE's laughing at someone else?? And others are taking him seriously??
50

flecktimus,

14/04/2008 11:34:58
#58 Not disputing what you are saying about the Caley nor the price of the sale.I am sure it is a very good investment.
51

The Wookie,

edinburgh 14/04/2008 11:35:43
58#...Morning Wee..

For weeks now you have been ending with "We own the Capital"..

what does that mean - i can't get my head around what point you trying to make
52

CAPY888,

Compton 14/04/2008 11:37:26



WE OWN THE CAPITAL!!!!!!!!!!
53

,

14/04/2008 11:39:03
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54

The Wookie,

Edinburgh 14/04/2008 11:42:31
43~..Rob as much as it hurts me as a Jambo to give you this info - but i deal with Hibs daily on a professional basis an know one or two influential people at Easter road on a personallas well as professional level.
I can confirm that Hibs did indeed put in place a credit line to assist with the funding of their training centre.....

But did not use it - Ouch!!! - told you it would hurt to confirm this
55

GrahamL,

playing devils advocate 14/04/2008 11:42:39
#65 "the necessary expertise can be bought and brought in"
Indeed, just like running a football club...
56

Jambo-ree,

14/04/2008 11:43:05
#46 - Big Rob. I started working in Bernard Street in Leith in the 1960s and at that time the whole of that area was the pits. Now it's become Leith-sur-Mer but the process had to start somewhere. So why should Gorgie not start to follow suit? It will take more than just the proposed Tynie development but that could act as a trail blazer for further regeneration and as someone else has already pointed out the proximity of the new trams will bring it closer to the city centre in terms of travelling.

Rob, Joe Public actually has very few grounds for objecting to planning permission applications so the number of residents raising objections is a red herring.

Still don't see why anyone wanting to asset strip a company would take on one already £20m in debt. And if Ukio Bankas was to foreclose on Hearts' debt then how would they get their money back?

BLANK THE PLANK
57

,

14/04/2008 11:45:34
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58

,

14/04/2008 11:47:32
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59

flecktimus,

14/04/2008 11:47:52
#66 Thank you Ouch!!! Apology to Big Ron
60

flecktimus,

14/04/2008 11:51:57
#74 Already has
61

John H,

edinburgh 14/04/2008 11:56:10
The clock is still ticking but the winder is burst.
Not long to go.
62

Newcastle Jambo,

14/04/2008 12:03:43
I do still feel that Romanov could liquidate Hearts at anytime and still make a profit. The money from the Gordon sale and the impact of a much reduced wages bill isn't yet on the accounts. Presumably this will leave the debt at around £25m. The ground was worth around that 4 years ago and the prices boomed after that. The current playing squad is worth a few more million (Berra and Kingston at least). So, I don't think UKIO is too worried about making money from Hearts if they decide to call in their debt.
63

,

14/04/2008 12:17:10
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64

Jingling Geordie,

Sunshine on Leith 14/04/2008 12:26:30
#10 Flickthemouse
It's not perfect at Easter Road however the club's debt has dropped from almost £18 million to just about zero on the other hand Heart's debt has risen to £37 million yet we are above you in the league!!!!!!
65

Pedantic_Hibee,

14/04/2008 13:21:54
Wookie, give it up, son.

We're in great hands. Next you'll be telling me that Fletcher is on loan to FK Vilnius and we won't receive a penny of his impending transfer........
66

,

14/04/2008 15:30:09
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67

,

14/04/2008 15:32:59
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,

14/04/2008 15:35:46
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69

Glorious Hearts,

14/04/2008 15:41:41
#86 who said anything about freedom of speech?

I'm merely pointing out that you're on here every day trying to take the mick out of other people and yet YOU'RE the one who spent his friday night in front of the computer on another team's stories.

Rock and roll!

Blank the plank
70

BK,

Cyberspace 14/04/2008 16:14:53
Build a new ground and call it Ipatiev Stadium. Sorry if this is a bit intellectual fore Jambos.
71

walkie,

top 6 14/04/2008 18:24:33
# 43 I live in a house 10% is deposit 90% mortgade.

Question- Who owns the house?

Miss a few repayments and you will find out who owns it ya jambo tube.
72

NBJT,

North Berwick 14/04/2008 18:24:40
Yet another scare mongering nonsense from the Hibsman publications!!!!

I only bought the EEN because the billboards in Edinburgh were screaming out that there are problems with the new stand progressing!!!

Having now read the article which says ABSOLUTELY nothing new I have sent it to the bin where it belongs. It will be a long time before I buy another EEN!!!!!I have long since stopped buying the Scotsman or Englishman as it should be called.

The bottom line is that there is no football stories about the famous JT's today as they weren't playing at the weekend. As a result sales suffer on a Monday. With no other news the story hit the front page.

What a disgrace, journalism at its worst!!!!!
73

,

15/04/2008 09:39:20
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