Romanov confident of coping with £28.4m debt

HEARTS chairman Vladimir Romanov maintains his club is progressing in accordance with his business plan, despite financial results which reveal the Tynecastle wage bill has risen to almost 100 per cent of overall turnover.

The club revealed how revenue ran into eight figures for the first time in the last financial year, rising by 22 per cent to £10.277million.

However, the wage bill more than doubled from £4.5m to £10m in the year to 31 July 2006 - on the back of squad strengthening. The recommended wage-bill/turnover ratio is 60 per cent.

Annual losses were £5.282m and total debt climbed to £28.4m. The overall debt figure is helped by the 'forgiveness' of £2m by Romanov's UBIG, the investment bank he controls, and the club also reported a profit of £1.04m on player transfers. Attendances last season swelled by 34 per cent, and commercial income was up by 18 per cent - but the debt level will inevitably concern many supporters. Even so, Romanov is confident the club will become profitable.

His spokesman, Charlie Mann, told BBC Scotland: "The level of debt has not surprised anybody. He [Romanov] also believes, and the board totally believe, that the debt level of £28.4million is entirely manageable. So [it is] not a surprise, [Hearts] are capable of managing that, and this gives them a basis from which to build on it and build the club from here."

Former Hearts chairman Leslie Deans urged fans to look at the bigger picture. "Remember where the club was when Vladimir arrived," Deans said. "The club has continued to move forwards since then. There have been hiccups; there have been glitches along the road, but I believe the club is still continuing to move forward."

Taken from the Scotsman