Vladimir Romanov, a Russian-born Lithuanian businessman, acquired an initial 19.6 per cent stake in Heart of Midlothian during the 2004–05 season. His stake increased to 29.9 per cent after he guaranteed the club's finances, and he later increased his holding to 82 per cent.

Romanov's control ended after Ūkio bankas and UBIG became insolvent and Hearts entered administration in June 2013. Ann Budge's Bidco (1874) Limited acquired the controlling shareholding in May 2014 under an agreement with Foundation of Hearts, ending Romanov's ownership.

Background and takeover

Hearts, like many other Scottish Premier League clubs, ran into severe financial difficulties during the early part of the 2000s. An assessment by PWC in the autumn of 2003 found that Hearts, along with four other SPL clubs, were technically insolvent. Dundee and Livingston subsequently went into administration, while Hibs and Dunfermline both took drastic measures to balance their finances, cutting their player budgets severely and selling assets. Hearts also cut their player budget and, more significantly, proposed to sell Tynecastle to eradicate the club's debt. The fans protested against the latter course of action, forming a group called Save Our Hearts.

Hearts made a deal with the Scottish Rugby Union to use Murrayfield Stadium in order that they could sell Tynecastle. Originally this was meant to happen during the summer of 2004,Murrayfield share agreed, BBC Sport, 9 February 2004. but was then delayed for a season. During this period, Hearts were a public limited company. Ownership of the club was very fractured, with no individual shareholder owning more than 20% of the club. This meant that minority shareholders, including supporters' groupsHearts consult on move, BBC Sport, 13 February 2004. and the McGrail brothers,'Save Tynecastle' plans revealed, BBC Sport, 9 January 2004. could realistically hope to acquire other minority stakes in order to block the proposals to sell Tynecastle. In August 2004, Hearts made a deal to sell Tynecastle to Cala Homes (a housing developer), but the deal had an escape clause which meant that Hearts could withdraw from the deal before 31 January 2005 if a viable alternative could be found.Hearts fans vent their fury, BBC Sport, 13 September 2004.

Vladimir Romanov had shown interest in investing in Scottish football for some time because he wanted to see whether Lithuanian footballers could prosper abroad.Hearts in takeover talks, BBC Sport, 31 August 2004. Scottish football clubs were particularly ripe for takeover due to their weak finances and corporate structures.Conn, David. The problem at Hearts is the trouble with British football, The Guardian, 9 November 2005. He made approaches to Dundee United,Who is Vladimir Romanov?, BBC Sport, 1 November 2005. Dundee and Dunfermline, but these were all rejected. He opened negotiations with the board of directors to invest in Hearts during August 2004. Romanov offered the prospect of the club staying at a redeveloped Tynecastle,Campbell, Alan. Romanov confirms he aims to stay at Tynecastle, Sunday Herald, 3 October 2004. which was very attractive to Hearts supporters.Consortium aims to gazump Romanov, BBC Sport, 26 January 2005. Board chairman George Foulkes pleaded that the shareholders should not scare Romanov away by demanding too much for their shares.Foulkes' plea for Hearts, BBC Sport, 22 September 2004.

Chief executive Chris Robinson, who had been the chief proponent of the necessity of selling Tynecastle, agreed at the end of September 2004 to sell his 19.6% stake to Romanov.Robinson sells Hearts stake, BBC Sport, 30 September 2004. Romanov called an extraordinary general meeting in January 2005 so that the club could pass a motion to exercise the escape clause in the deal with Cala Homes.Hearts edge closer to home stay, BBC Sport, 7 January 2005. The backing of Leslie Deans and the McGrail brothers meant that the motion was passed with over 70% support.Hearts warn ground could still go, BBC Sport, 11 January 2005. The sale of Robinson's shares was completed on 2 February 2005Romanov takes control at Hearts, BBC Sport, 2 February 2005. after Romanov made financial guarantees that the club could continue to trade without selling Tynecastle.Hearts give takeover green light, BBC Sport, 29 January 2005. This sale increased Romanov's stake to 29.9%, giving him effective control of the club. Romanov's takeover was welcomed by a fans representative.

Managers

George Burley Chris Robinson resigned as Hearts chief executive after selling his shares to Romanov.Ferguson, David and Halliday, Stephen. Hearts turn to Anderton, The Scotsman, 18 February 2005. To replace him, Romanov hired Phil Anderton, who had just resigned from a similar position with the Scottish Rugby Union. Anderton appointed George Burley as Hearts manager during the 2005 close season.Hearts appoint Burley, RTÉ, 30 June 2005. During this period, Romanov started the practice of signing players through FBK Kaunas, including Edgaras JankauskasJankauskas completes Hearts move, BBC Sport, 25 July 2005. and Roman Bednář.Czech strikers join up at Hearts, BBC Sport, 27 July 2005. The club signed other high-profile players such as Takis FyssasHearts complete signing of Fyssas, CNN, 9 August 2005. and Rudi Skácel.Hearts complete capture of Skacel, BBC Sport, 19 July 2005.

With their new manager and signings, Hearts got off to a tremendous start in the 2005–06 season. The team won their first eight league matches,Happy Burley avoids talk of title, BBC Sport, 24 September 2005. equaling a club record set in 1914. Romanov increased his shareholding in Hearts to 55.5% on 21 October 2005, and offered to buy the rest of the shares.Romanov aims for Hearts ownership, BBC Sport, 21 October 2005. Chairman George Foulkes sold his shares to Romanov and encouraged others to do likewise. Romanov eventually increased his majority share in Hearts to 82%., euFootball.biz, 28 December 2006.

In a move that shocked Scottish football, Romanov sacked George Burley on the following day. Hearts fans were led to expect a "top class manager"Burley in shock exit from Hearts, BBC Sport, 22 October 2005. would replace Burley. Kevin Keegan,Hearts keen to talk with Keegan, BBC Sport, 30 October 2005. Bobby Robson,Hearts hope for talks with Robson, BBC Sport, 24 October 2005. Claudio RanieriRanieri explains Hearts decision, BBC Sport, 31 October 2005. and Ottmar HitzfeldHitzfeld says he rejected Hearts, BBC Sport, 4 November 2005. were all linked with the vacancy. Anderton, who had been making the approaches for these coaches, was sacked by Romanov on 31 October 2005.Hearts in turmoil as duo depart, BBC Sport, 31 October 2005. Foulkes, who had helped to bring Romanov to the club in the first place,Foulkes brands Romanov a dictator, BBC Sport, 1 November 2005. resigned in protest at Anderton's dismissal. Romanov replaced both of them with his son, Roman Romanov.

Rix and Ivanauskas Romanov appointed Graham Rix as Hearts head coach on 8 November 2005 to replace George Burley. This appointment was not well received by the fansKiddie, Paul. Mercer slams 'hypocrites' over Rix appointment, Edinburgh Evening News, 9 November 2005. because Rix was a convicted sex offenderFootball star admits sex charge, BBC News, 19 February 1999. who had not coached at a high level since a brief, unsuccessful spell at Portsmouth in 2002. Hearts' results deteriorated under Rix.Rangers 1–0 Hearts, BBC Sport, 17 December 2005. It became apparent during February 2006 that Romanov was interfering in team selection.Players to wait for Romanov talks, BBC Sport, 9 February 2006. He agreed to meet a delegation of players to hear their grievances.

As a result of these grievances, Andy Webster refused to extend his contract with the club,Webster stalls on contract talks, BBC Sport, 7 February 2006. for which he was dropped from the team. Romanov suspected Webster of wanting to move to Rangers.Webster on the way out at Hearts, BBC Sport, 26 April 2006. In the summer of 2006, Webster exercised his right under new legislation to buy out the remainder of his contract. He signed for Premier League club Wigan Athletic, before being loanedWebster completes Rangers switch, BBC Sport, 9 June 2008. and eventually sold to Rangers.

Rix was sacked by Romanov on 22 March 2006,Rix sacked as Hearts head coach, BBC Sport, 22 March 2006. who replaced him with former FBK Kaunas coach Valdas Ivanauskas.Ivanauskas promises few changes, BBC Sport, 22 March 2006. Despite the upheaval of two managerial changes, Hearts managed to finish second in the league, which meant that the club qualified for the qualifying rounds of the Champions League. It also marked the first time a club outside the Old Firm had finished in the top two positions since the 1994–95 season. Hearts also won the Scottish Cup by beating Gretna on penalties in the final. Following these achievements, Ivanauskas was appointed as head coach on a permanent basis in the summer of 2006.Ivanauskas named new Hearts boss, BBC Sport, 30 June 2006.

Player unrest

Following a 2–0 home defeat by Kilmarnock in October 2006, Valdas Ivanauskas went on a leave of absence due to unspecified health reasons,Ivanauskas to take two-week break, BBC Sport, 23 October 2006. and was replaced by Eduard Malofeyev on a caretaker basis. Romanov declared that he would put all his players up for sale to "whatever club would take them" if they did not win their next game, against Dunfermline.Romanov issues player ultimatum, BBC Sport, 27 October 2006. Captain Steven Pressley, flanked by fellow Scotland internationals Craig Gordon and Paul Hartley, announced to the media that there was "significant unrest" as a result of this continued upheaval. The Hearts fans showed that they backed the players in their dispute during the game against Dunfermline,McLean, Euan. Hearts 1–1 Dunfermline, Sunday Mail, 29 October 2006. which ended in a 1–1 draw. Pressley was then dropped from the teamPressley completes Celtic transfer, CNN, 29 December 2006. and was given a free transfer. He signed for Celtic, where he was soon joined by Hartley.Celtic complete Hartley capture, BBC Sport, 31 January 2007. Gordon was sold to Sunderland in August 2007.Gordon completes Sunderland move, BBC Sport, 8 August 2007.

2008 manager search After a disastrous run of results during the 2007–08 season,Anderson, Barry. Fallen Angel back as Hearts coach, Edinburgh Evening News, 1 July 2008 Hearts issued a statement on 1 January 2008 that said they would look to appoint a "British-style" manager in the near future.Rober says no to Hearts job, FIFA, 29 June 2008 Romanov placed Stevie Frail in charge for the rest of the season, but Hearts disappointingly finished eighth in the league. Immediately after the end of the season, Hearts approached Motherwell for permission to speak to Mark McGhee with the intention of appointing him as their new manager.Saunders, Steven. Hearts fans should be glad of Romanov, says McGhee, The Scotsman, 2 June 2008 McGhee appeared to be on the verge of accepting Romanov's offer, but he eventually decided to stay at Motherwell. Hearts subsequently made approaches to Jürgen Röber and Vladimír Weiss, who both also turned down the job. George Foulkes commented that Romanov was "reaping what he had sown".Wright, Angus. Romanov 'reaping what he has sown' as Rober turns down post, The Scotsman, 29 June 2008 Foulkes believes that Romanov has made the Hearts job unattractive to managers due to his record of interfering in team matters.I'm not surprised at Hearts manager snubs, says George Foulkes, Daily Record, 30 June 2008 Nonetheless, a head coach was eventually hired on 11 July when Hungarian coach Csaba László was appointed to the position.

Finances