The race is on to save the Edinburgh side after it was placed in administration owing £25million. The depressing development at Tynecastle came as no real surprise but was another blow to the game which is arguably still coming to terms with Rangers being liquidated last summer before re-emerging in the Third Division.
Former Scotland manager Roxburgh, who joined Major League Soccer side the New York Red Bulls as sporting director last November, expressed his deep-felt concern for the Scottish game, and told Press Association Sport: "My heart is there but I view it from the outside and I just shake my head in disbelief."
He added: "I can't believe what has happened to the Scottish game. I find it really sad. That is the only word for it. But I am not Harry Potter. I don't have a solution or (will say) go to the American system. American sport is different from European sport.
"But what I would say that they have done brilliantly here is they have made sure that the business, that is the clubs and the league, can survive, that is their priority.
"Previously, there had been start-ups and failures and what they have done over nearly 20 years is they have kept the league alive, adding to it and improving it.
"The salary cap and all the controls on you are quite difficult, but they are there for a reason. For them, the league is more important than any one team and so the survival of the league is the name of the game for them and they have done it well.
"The league is in good condition financially and in general, the clubs are stable. Nobody seems to be under threat in any way, nobody is going into administration so you have to say that what they have done here, in terms of the business model, has worked."
Roxburgh never managed at club level but was the first national team boss to take Scotland to two successive major finals - the 1990 World Cup in Italy and the 1992 European Championship in Sweden. However, the former Queen's Park, Partick and Falkirk player was keen to stress he was not looking at Scottish football through sepia-tinted glasses.
"It is too easy to say it was better in the past," he said. "The past had its flaws as well but right now it is clearly an economic thing in Scotland more than anything. It is a business problem and that is having an impact on who you can buy, who you can keep, who you can develop."