VLADIMIR Romanov and Jim McLean may seem like entirely different characters but they share a theory on football players and wages, even if the Lithuanian tycoon has arrived at such a stance via a costly process.
The confirmation on Friday that Hearts' debt had reached £36m was hardly ground-breaking. That Romanov chose to be in town as the figures were revealed was more surprising for sceptics who fear he has lost interest in his Tynecastle project.
Not
so, say those close to Hearts' owner, with what will follow set to illustrate their view. Players will no longer be "rewarded for failure", according to Charlie Mann, Romanov's spokesman. Cue cheers from fans, who have grown disillusioned with under-performing high-earners.
Friday's figures showed Hearts' annual wage bill to be £12.49m (£10m in 2006) – a huge figure given there was no European football at the end of it. Such figures will not be completely out of reach to any new manager, but basic wages will drop in line with a policy pioneered by McLean two decades ago.
"The new manager does not have to use all of that money, but it emphasises why the appointment must be right," adds Mann. Gone, moreover, are the days when high basic salaries are bestowed on players who offer little in return – Juho Makela, Neil McCann and Mirsad Beslija spring to mind. Bonuses and incentives, however, will remain lucrative in a trimmed playing squad. Given the figures on offer – Hearts finished third in the Premier League twice in a row under Craig Levein, who spent less than £5m a year on wages – Romanov will still expect a team that challenges near the top of the table.
Clearly, aspects of Hearts' business are at best unorthodox and at worst unsustainable. Wages at 125% of turnover blows to pieces every model which football analysts will recommend, but such expense and risk highlights the need for Romanov and his Ukio Bankas Investment Group (UBIG) to put in place a "succession plan". Such a scheme, which would safeguard Hearts' future in the event of Romanov falling ill, for example, remains on the UBIG agenda; those within the corridors of power at Tynecastle must insist it is put into writing so the club can fall back on their parent company's published assets of ?537m (£435m) if needed.
More immediately, a share issue will be launched and underwritten by UBIG to clear much of Hearts' debt. The effects of such a process, successfully incorporated by David Murray at Rangers in the past, would be two-fold. UBIG, in one move, would demonstrate a long-term commitment to Hearts and would also provide a barrier to anyone who wanted to buy them out by insisting any monies from the scheme had to be returned. Potential suitors could have to pay UBIG more than £20m to gain control of Hearts.
Pedro Lopez, now in charge of the Tynecastle redevelopment plans, has a part to play in curtailing Hearts' debts by retrieving the third-party investment which would minimise the club's outlay on the £51m project. A telecoms firm has been linked with sponsoring the new main stand; another option would be that UBIG buy the site from Hearts, a swift property transaction which would put a dent in borrowings but one which Romanov sources have distanced themselves from.
More realistically, converted shares may be in the name of a new UBIG company which has the sole responsibility of developing Tynecastle rather than monies being extracted from Hearts' bank account.
With turnover increasing by the year, Romanov has proved that Hearts can become a profitable outfit, and such monies can only rise with the incorporation of new facilities.
Mann has insisted Romanov plans to visit Edinburgh more regularly in the closing weeks of this season, although the owner has no obligation to attend Hearts' AGM on April 18, although his son, the rarely-spotted Roman, should however be in the chair.
Hearts' debts were almost £22m when Romanov arrived with the club on the brink of oblivion in 2005. Following the sale of Craig Gordon and imminent departure of Roman Bednar, that figure may only have increased by £5m in real terms by this summer.
In between, there has been a Scottish Cup success and plans are afoot to stay at Tynecastle long-term – looking at what might have been, perhaps fans don't much cause for discontent, but they are entitled to more for their money.
The full article contains 752 words and appears in Scotland On Sunday newspaper.
