Things have gone from bad to worse on the financial side of Scottish Football, as Hearts of Midlothian Football Club (or Hearts F.C.) are set to be plunged into administration.
The club reportedly has an unpaid tax bill of over £100,000; and needs to raise over £500,000 just to field a team for next season. The total team debt of over £25 million, is a staggering number, and is causing a real threat for the future of the historic club based in Gorgie, just West of Edinburgh. While not matching the history of Celtic or Rangers, Hearts would be considered one of the next most famous clubs in Scotland behind the two giants.
On Thursday the Club confirmed the news, with a spokesman saying: “We are not in administration yet but we have served our intention to appoint administrators.”
It is expected that the administrators will come from financial giant KPMG.
The admissions triggered an immediate transfer embargo by the SPL (the new Scottish Premier League, designed in part to quell the financial problems of the debt laden Scottish Clubs. Hearts have put the entire squad up for sale in a desperate attempt to raise the funds needed to play next season. Even if they do make enough to get the season starter, Hearts will face a 15 point penalty due to the insolvency.
This is the latest in a series of financial issues for Scottish football. The previously mentionned Glasgow Rangers became insolvent last summer and were plunged into liquidation where the clubs assets were bought by newRangersco. As a result of the insolvency, Rangers were force to play last season in the Scottish Third Division. The won promotion and will be in the 2nd division this year. But it is a long, slow climb for one of Scotland’s most iconic clubs.
Now Hearts faces a similar, uncertain future, and only time will tell where they go from here.
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