Scottish Premier League - Hearts could face further financial blow

Hearts are to learn on Thursday if they are to be issued with a monetary punishment for going into administration.

PA Sport
Scottish Premier League - Hearts could face further financial blow

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Hearts could be hit in the pocket for going into administration

The financially stricken Tynecastle outfit were issued with a notice of complaint by the Scottish Football Association on July 1 after calling in administrators BDO.

Club officials are due to attend a Hampden hearing where they will learn whether they have breached disciplinary rule 14, which relates to suffering an insolvency event.

The crisis-hit Jambos - who are £25million in debt and face a battle against relegation after they were issued with a 15-point penalty for the start of the new Scottish Professional Football League season - could now be hit with a further financial blow should the SFA decide to impose a cash fine.

Among the possible punishments are a maximum fine of £1million or suspension or termination of membership from the governing body.

The threat of court action over a partially paid £100,000 tax bill sparked the decision to place Hearts into administration last month, with BDO taking over the running of the club.

The Gorgie outfit owe £15million to Lithuanian bank Ukio Bankas, which owns 29.9 per cent of the club and holds a floating charge over Tynecastle as security on the money it is owed.

A further £10million is owed by the Edinburgh side to UBIG - another Kaunas-based firm that, like Ukio Bankas, was once controlled by former Hearts owner Vladimir Romanov and which holds a 50 per cent stake in the club. Both Ukio Bankas and UBIG are insolvent, although the latter has not yet had an administrator appointed.

Fans of the Gorgie side have rallied to the cause, helping to take season-ticket sales past a 10,000 target set by BDO.

The administrators set a date of Friday, July 12, for interested parties to submit offers for the club. The Foundation of Hearts, an alliance of supporters groups, was the first to submit its bid, with rival offers later lodged by HMFC Ltd, who are financed by American investors, and Five Stars Football Ltd.

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