Hearts assure fans over shares

Hearts have moved to assure supporters that money raised by a

share offer will not be used in any settlement with HMRC in a tax

dispute.

The Edinburgh club launched a share issue last week, making more

than 16 million shares available to supporters at 11p per share in

a bid to raise ?1.79million, or 10 per cent of the club.

The tax dispute was revealed in the share issue brochure, which

stated that Her Majesty’s Revenue and Customs has claimed unpaid

tax liabilities in the region of ?1.75million.

At the centre of the dispute is the loan agreement for a number

of players between Hearts and Lithuanian club Kaunas, who were then

run by Vladimir Romanov, the Jambos majority shareholder since

2005.

Hearts director Sergejus Fedotovas warned fans that the club

faces dramatic cutbacks if they do not buy into the new share

issue.

However, he has stressed that all the revenues raised will be

directed into ongoing working capital requirements and youth

development.

Fedotovas told the club’s website: “I stated at the weekend that

the matter of the potential HMRC liability would be dealt with

separately and outside of this current share issue.

“I have noted some comments that might not be the case but I can

reassure all supporters that their money will be going to the club

and not to cover any potential liability in relation to this

matter.

“I would also reiterate that we will be defending this matter

and will do everything in our power to secure a positive outcome

for the club.

“We are being totally transparent with supporters but it would

be entirely wrong to suggest this share offer isn’t for anything

else other than what we state is for.”