Once again there are rumours that the Edinburgh club are up for sale as uncertainty persists over the finances and intentions of their backers. Twice this season the Ukio Bankas Investment Group (UBIG) has failed to pay players’ wages on times and there has been a private admission from within the club that they have a serious cash flow problem. The finances of UBIG and Vladimir Romanov have always appeared complex. News that another club they claim to subsidise, MTZ-Ripo of Belarus, have failed to pay some staff in six months has renewed concerns.
Once again there are rumours that the Edinburgh club are up for sale as uncertainty persists over the finances and intentions of their backers. Twice this season the Ukio Bankas Investment Group (UBIG) has failed to pay players’ wages on times and there has been a private admission from within the club that they have a serious cash flow problem. The finances of UBIG and Vladimir Romanov have always appeared complex. News that another club they claim to subsidise, MTZ-Ripo of Belarus, have failed to pay some staff in six months has renewed concerns. UBIG appear to be asset rich and cash poor and this is not a time to be realising assets. Arbroath have been forced to wait for a £14,000 sell-on payment and this from a club that has apsirations to build a £51m new stand. Borrowings of £37m have been reduced by player sales, but there is also a £12m debt for equity scheme funded by UBIG. Players will have to be sold next month to ease short-term problems, partly caused by exorbitant contracts handed to squ
ad members two years earlier. Any buyer of the club would need to find a significant percentage of the sum Romanov paid to buy out a £20m overdraft and a percentage of the cash spent on players.