Hearts braced for record losses

Hearts will report record losses when they publish their financial accounts within the next two weeks.

The figures for the year ending July 2007 are expected to show a �10m increase on the debt the Tynecastle club reported last year - to �38m.

Since then Craig Gordon has been sold to Sunderland for �9m and other high-earners have left the club.

Former Hearts chairman George Foulkes said the figures gave "cause for concern, but not panic".

Hearts, who have Stevie Frail as caretaker manager, set a �40m borrowing limit at last year's AGM.

The club's major shareholder Vladimir Romanov, owns Ukio Bankas and Hearts' borrowing is owed to the bank.

As long as Vladimir Romanov and his institutions are guaranteeing the loans Former Hearts chairman George Foulkes

Speaking on BBC Radio Scotland's Sportsound programme, Foulkes said the financial picture at Tynecastle would become clearer in the coming weeks.

"One of the things that does perplex many of the fans and shareholders alike is the complex nature of the finances now and exactly how much is owed to whom," he said.

"Hopefully, we'll see that a bit more clearly when the accounts come out.

"As long as Vladimir Romanov and his institutions are there guaranteeing the loans."

Foulkes added: "But also, part of the problem is that during the course of the year with the players.

"Some of them are on Hearts' books and some are on the books of Kaunas - with their salaries and wages paid by Kaunas - but the players on loan to Hearts. That's causing complications.

"We've also been unsure about what has happened to the receipts of the players who have been sold.

"Not the ones who are Kaunas players, but those such as Craig Gordon."