February 13 – Scottish Premier League club Hearts face more financial uncertainty after Lithuanian owner Vladimir Romanov had the operations of his Ukio Bankas bank suspended and put under temporary administration by Lithuania’s central bank.
Hearts has debt of about £24 million ($38 million) and in December agreed to pay £1.5 million to settle a tax dispute. Hearts also cleared a separate tax bill of £450,000 to prevent the immediate threat of liquidation.
Sergejus Fedotovas, a director of Hearts, stated: “The Board wishes to make it clear that Heart of Midlothian plc and Ukio Bankas are two separate companies.
“Hearts is majority owned by Ukio Banko Investicine Grupe (UBIG), a multi-national business conglomerate. UBIG is an entirely separate entity and stands alone from Ukio Bankas.
Fedotovas said that it was the opinion of the board would have little effect on the running of the Edinburgh club.
“At a service and operational level, Ukio Bankas does provide the club with some banking services and debt facility and the Board is liaising with Ukio Bankas on these matters,” said Fedotovas.
The Lithuanian central bank said it had found too much risk taking and not enough effort to provide financial stability at Ukio, and hence it decided to act. The Lithuanian prosecutor’s office announced it has opened an investigation into the possible embezzlement of assets at the bank.
Ukio, whose shares have slid 75% since the start of 2011, has been under scrutiny for some time from the central bank and was the subject of an inspection in December and January. The central bank said it would negotiate with other banks to try to restructure Ukio.
Hearts fans have long been concerned about the running of the club and its finances with Romanov having frequently cut a controversial figure at the club, especially when it came to player wages. In December was hit by a transfer ban after failing to pay bonuses to its squad.
Fans have set up a foundation to try and buy the club and have asked Romanov to move over.
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