Hearts Rant: Time for Transparency in Uncertain Times? (Monday 22 October 2012)
The pre-season of 2012 was supposed to be a new era for Heart of Midlothian. A new dawn of austerity, prudence and sound business decisions. As a club, we were changing for the better.
As we embarked on the hard-hitting journey of cost-cutting, supporters reacted with a sense of realism. We’d lived outwith our means for too long; it simply could not continue. As we’d cast an admiring glance over outstanding flair players such as Pinilla, Bednar, Aguiar, Fyssas, Jankauskas and Pospisil, we’d been paying massively inflated salaries and contributing pound by pound to our own demise.
As debt grew, we all became experts in ‘debt for equity’ swaps. Indeed, it seemed the Romanov regime undertook a new debt-for-equity arrangement every year. In layman terms, the Russian tycoon was writing off portions of the debt in return for a greater share in the club. I’m no business analyst, nor am i particularly fluent when it comes to dissecting Balance Sheets, but it doesn’t exactly sound like a long-term strategy for running a corporate entity turning over circa £6M per annum.
As Romanov penned one of his now familiar rants on the club website in the autumn of 2011, his tone had become somewhat threatening as he talked of the club standing on it’s own two feet. No more blind funding of the football club. His plan was to cut costs and bring the turnover:costs ratio down to a sensible level, thus attracting a suitable buyer. This wasn’t empty rhetoric from the headstrong Russian, he was serious now.
The summer directly reflected this new stance. High earners punted, cup-winners axed, the popular Portuguese manager binned. Indeed, the promotion of the clubs academy graduates gave the most distinct clue as to the road we were set to go down. Foreign mercenaries? Not us! We’re all about the guile and workmanlike attitude of our young players. Holt, Walker, Paterson, McHattie, Carrick — throw them all in! Who better to nurture them? Well, Mr McGlynn of course. He’d managed them all at Raith Rovers anyway.
This was the new Hearts.
This stance was all very well. If the shrinking of the wage-bill ensured that everyone was indeed paid on time month-to-month then we could live with that. Last season had seen the reputation of the club take a monumental battering four-weekly as the club lurched from one cashflow shitestorm to the next. It had to stop, and it was going to stop. After all, we’d shed some of the highest earners. 2012/13 was to be plain-sailing.
No chance. As i sit here penning this blog, the club have emerged from an SPL board meeting with the news that we’ve been reprimanded for September’s late wages. A transfer embargo is in place to ensure that we’re not bringing more earners onto the books whilst being unable to pay our employees. The cashflow problems remain: 6 first team players awaiting their salaries for October and Mr McGlynn still awaiting payment also (Did he deserve his wages? Only kidding..).
Yes, that’s right, folks. As I’ve sat daydreaming about the imminent return of Rudi Skacel, we’ve been under a bloody transfer embargo that stands as a cast-iron guarantee that he won’t be returning. Christ on a bike.
Anyway, for me there are one or two fundamental issues that require further examination, as follows:
1. Why is there a continuing lack of transparency from within the club?
We’ve not heard a peep from David Southern of Sergeus Fedotovas as these issues have reared their ugly head once more. Nada. Where is the reduced funding from UBIG Group? What exactly are the reasons for continual late payment of salaries, in detail? Is their any chance of an admission that the club will continue to experience these issues?
Whether it’s our refusal to deal with the Glasgow-based tabloid media, stubbornness from the Board or indeed a breakdown in communication between UBIG and HMFC , the answers have simply not been forthcoming.
Until they are, there will be the usual rumours surrounding the club. Is Romanov simply refusing to wire the money in order to mock the football governing bodies? Is he keen to highlight the absolute reliance that the club has on him as an individual? Does this reflect greater cashflow problems within the entire UBIG empire? Stories are circulating online that workers in Romanov’s Bosnian steel plant have gone months on end without salaries. Telling indeed.
More clarity from the club would — for me — result in greater empathy within the corridors of Hampden. An openness to this state of affairs rather than a regime of secrecy and false promises.
We can all but hope.
2. Who exactly is deciding our fate on the Scottish Premier League Board?
As far as I’m led to believe, Hibernian’s Rod Petrie and Dundee United’s Stephen Thompson are assisting the SPL’s Neil Doncaster in the quest to impose sanctions against the club. Two individuals who are board members of rival clubs.
Yes, Rod ‘The Tache’ Petrie; a man who openly mocked the wages issues at Tynecastle last year when he refused to supply our allocation of away tickets for Easter Road. He sighted the possibility of not receiving funds from Hearts once the tickets were sold — which was quite simply a potshot at best considering SPL rules would mean Hibernian would have received the due funds from the SPL in the event of non-payment. Leaving aside the fact that he’s the Chairman of our fierce rivals, i did find it bizarre that he’s suddenly judge and jury when it comes to our latest misdemeanours. By the way, Petrie has since confessed to Hibernian’s own perilous cash-flow position in the summer when he penned a panic-strewn letter begging the natives to buy season tickets ASAP. Clown.
To be clear, I’m not necessarily questioning the integrity of Thompson or Petrie, but it’d be interesting to know the make-up of the panel who are deciding our fate on Wednesday afternoon. One to ponder.
3. What is the appropriate SPL punishment?
The transfer embargo aside, how exactly is the club to be punished for the issues we’re currently encountering?
Do you fine the club? Massively contradicting in itself and potentially endemic. Impose an indefinite embargo until problems subside? Sensible but perhaps not strict enough. Withholding of prize money? Again, potentially counter productive. A points deduction? Surely not? Would Petrie and his cronies punish the players for not being paid? That would be obscene given the circumstances.
I’d imagine the latter is highly unlikely, certainly at this junction. However, let’s not forget that Neil Doncaster is one of the most highly incompetent men to be in such a high position of authority in our game. His handling of the Rangers saga was one of the most sorry episodes in the history of our game. It wouldn’t surprise me in the slightest if we were taken to the cleaners by him and his band of blazers.
Let’s wait and see how it pans out.
Whilst we continue to have off-field problems, Sunday’s performance was much improved. Danny Grainger’s first half thunderbolt secured all three points against a streetwise Motherwell at Tynecastle. Standout performers were Darren Barr, Arvydas Novikovas and Andy Driver amongst others.
As the league continues to be as tight as a tick, it’s imperative that we build momentum with another three points against Ross County this weekend.
Let’s get the three points in the bag and get a good few wins before the inevitable media-scrum around Riccarton next month.
We’ll support you evermore.
