Tag Archives: UBIG

Will Hearts’ Financial Woes Save Dundee From Relegation? Tough Choices For the SPL

The SPL have decided to discuss the situation at Hearts on Monday, after the SPL season ends.

The majority owner of Hearts and the main creditor, UBIG and UKIO Bankas, are both in, or have applied to go into, administration.

Mr Romanov’s always interesting stewardship of Hearts seems inevitably at an end.

The Lithuanian administrators will see what they can realise from Hearts – perhaps only the ground will prove worth anything? Continue reading

277 Comments

Filed under Administration, Dundee FC, Football Governance, Hearts, SPL

The Administration of Ukio Bankas and its Effect on Hearts

Whilst the Rangers story last year was about, as it is now presented, the company which owned the assets and business which made up the football club, going into administration, the situation this year at Hearts comes from the opposite perspective.

Here it is the bank which is owed huge sums by the company which owns the assets and business which make up the football club going into administration. Simples!

Ukio Bankas, the Lithuanian Bank largely owned by Vladimir Romanov and his UBIG Group has been placed into administration, and the administrators are looking for buyers for the assets. That suggests that the value which UBIG can attribute to its involvement in Hearts will be slim to zero, and slim left town. Continue reading

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Filed under Football, Hearts, Insolvency

Have Rangers Paid Hearts for Lee Wallace? Charles Green and Chick Young Seem to Disagree

Last Saturday Charles Green spoke to Rangers fans at Ibrox for their match against Alloa. I wrote about what he was recorded as saying here. It would appear that not all that Mr Green was noted as saying was 100% accurate. I am sure the apparent discrepancies noted below were entirely as a result of oversight or error, and not a deliberate clouding of the issues or declarations of bravado to appeal to his audience.

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There are two specific paragraphs I want to mention initially, which are reproduced exactly as they were written by the original poster on a Rangers message board.

3 – All footballing debt have been paid apart from the 31k to Dundee Utd which he has a letter confirming would be paid by the SPL.

6 – Rangers owed hearts the remainder of the Lee Wallace fee, Hearts were so desperate for the money eventually offering a 100k discount if we paid the cash two weeks ago. Thats why the couldn’t pay the wages.

My interpretation of that was as follows:-

  • Hearts have been paid for Lee Wallace.
  • Mr Green negotiated a discount for prompt payment. Continue reading

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Filed under Charles Green, Hearts, Rangers

The Hearts Share Issue – Risk Factors Galore – One For the Die-Hards Only?

Who would have thought that Hearts would beat Rangers to offering shares in the club to its fans? At this stage let’s ignore the club/company issue. What I want to focus on is the section issued by Hearts detailing “Risk Factors”. It can be found here.

No one can accuse Hearts of “soft soaping” the fans. The Risk Factors are spelt out most starkly. It will be interesting to see the contract with the Rangers Prospectus when it is issued.

Clearly the two organisations are very different, in terms of debt, fan base, finances and reliance on third parties.

Many of the Risks associated with Hearts will not apply to Rangers and vice-versa. However it does give a template for things to be looked at.

General Warning

The statement makes clear that acquisition of shares “involves a significant degree of risk”. It states that “specifically in the context of an equity investment in a Scottish football club in the current economic climate and last reported net debt of £24 million you should not expect any income from or return on your investment”.

It continues:-

“You should not acquire shares in the company unless you are capable of evaluating the risks and merits of such investment and have sufficient resources to bear the loss of all the money invested by you.”

It then states:-

“The Directors are committed to strategies that are intended to deliver long term value but there is no guarantee that those strategies will succeed.”

It is quite clear therefore that there ought to be no expectation whatsoever of any financial return from investment in Hearts shares, nor even a speculative one. Therefore it would seem to be the case that this one is not targeted at institutional investors, unlike that of Rangers. This one is for the Hearts die-hards only, it seems. Continue reading

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Filed under Football, Hearts