Danny Wilson’s move from Liverpool to Hearts has been allowed to go through despite a player registration embargo at Tynecastle.
Wilson, 21, spent the second half of last season on loan at the Scottish Premier League club before signing a three-year contract with them in May. But manager Gary Locke said on June 21 that the deal would have to be scrapped because of Hearts’ financial problems.
The club went into administration on June 19 with debts of £25 million, and have been banned by the SPL from registering new players after failing to pay the wages of a number of squad members.
But Hearts have now been told that, because Wilson was registered with them in January when he initially joined on loan, he can be signed permanently without breaching the ban.
The Scottish Professional Football League (SPFL), the new body created on Thursday from a merger between the SPL and the Scottish Football League, has cleared the Wilson deal.
An SPFL statement read: “The player’s existing SPFL registration is automatically extended and is not affected by the embargo on new SPFL player registrations.”
Hearts have confirmed that Wilson, whose Liverpool contract expires on Sunday night, has taken a significant wage cut to complete the move.
Locke told Hearts’ official website: “I am really pleased. Danny was already due to be part of the team and the administration has made no difference to his status. I appreciate that there have been some difficult decisions made regarding player redundancies.
"But given that Danny has agreed to a wage cut and is happy to be playing for Hearts, this gives us an opportunity to improve the team for the forthcoming season – so why wouldn’t we jump at the chance to have him on our side?”
Wilson struggled to establish himself in the first team at Liverpool following his arrival from Rangers for £2 million in 2010.
He made only one Premier League start in his time at Anfield, and played a total of nine games for the club, the last of which was a League Cup tie at Brighton in September 2011.
The defender, who has played five times for Scotland, had loan spells in the Championship with Blackpool and Bristol City before joining Hearts on loan in January.