dumbojambo Posted January 20, 2008 Share Posted January 20, 2008 Pedro Lopez (Sunday Times) reckons that there?ll be an extra ?2.5m a year from increased ticket sales after the redevelopment before spin-offs like hospitality and merchandising. The plan is to write off the debt over a 10-15 year period. He calls ?2.5m a conservative estimate. He says we need to be a top three club minimum and stadium has to be used more often (apparently 20 days a year at present) through hospitality, functions etc involving a 1000 seat capacity dining area. (That?s some canteen). Corporate boxes will hold 1000. (That?s a lot of suits). Also, wants to bring friendly internationals etc to Tynie. Quotes: "We've done our sums and the revenue we generate should serve the loan and drive some investment into the squad." ?Longer term, the ambition is to be in Europe and challenging. That?s where we want to be?. Accounts due out next month ? likely to show ?30m debt - ?9m fee for Gordon won?t feature apparently. Link to comment Share on other sites More sharing options...
Rawrrrrrrr Posted January 20, 2008 Share Posted January 20, 2008 Pedro Lopez (Sunday Times) reckons that there?ll be an extra ?2.5m a year from increased ticket sales after the redevelopment before spin-offs like hospitality and merchandising. The plan is to write off the debt over a 10-15 year period. He calls ?2.5m a conservative estimate. He says we need to be a top three club minimum and stadium has to be used more often (apparently 20 days a year at present) through hospitality, functions etc involving a 1000 seat capacity dining area. (That?s some canteen). Corporate boxes will hold 1000. (That?s a lot of suits). Also, wants to bring friendly internationals etc to Tynie. Quotes: "We've done our sums and the revenue we generate should serve the loan and drive some investment into the squad." ?Longer term, the ambition is to be in Europe and challenging. That?s where we want to be?. Accounts due out next month ? likely to show ?30m debt - ?9m fee for Gordon won?t feature apparently. I very much doubt our accounts will show only 30 million It was 28/9 million last season with transfer fees included, given in this year our income has fallen and we also spent a few bucks on the likes of nade then I can see the debt easily reaching 35 million They will use the gordon deal not being included to justify this As for debt free in 15-20 years Some plan that is when 5 years are seen as throwaway Link to comment Share on other sites More sharing options...
cosanostra Posted January 20, 2008 Share Posted January 20, 2008 I think they missed a zero and it's a 150 year plan that we have. Link to comment Share on other sites More sharing options...
Ryan Gosling Posted January 20, 2008 Share Posted January 20, 2008 I love that people have gone on about the debt, and 'what are we going to do about it?' for so long. Hearts say what they plan to do about it and then that isn't good enough, or what they want to hear. Sigh. Interesting that the ?10m from the player sales hasn't been used too. Link to comment Share on other sites More sharing options...
Dazo Posted January 20, 2008 Share Posted January 20, 2008 Interesting that the ?10m from the player sales hasn't been used too. Why did you think we had spent ?10m on players ? Link to comment Share on other sites More sharing options...
PTBCAL Posted January 20, 2008 Share Posted January 20, 2008 I love that people have gone on about the debt, and 'what are we going to do about it?' for so long. Hearts say what they plan to do about it and then that isn't good enough, or what they want to hear. Sigh. Interesting that the ?10m from the player sales hasn't been used too. TBH this week has been the best week as a Heart supporter for a long time. Beat the Vermin Stand App in Q & A - only words but I felt more 'relaxed' about things. We didn't go into admin on the 18th, or was it the 19th, 22nd? HOBO MUPPETS. Link to comment Share on other sites More sharing options...
Coco Posted January 20, 2008 Share Posted January 20, 2008 I love that people have gone on about the debt, and 'what are we going to do about it?' for so long. Hearts say what they plan to do about it and then that isn't good enough, or what they want to hear. Sigh. Interesting that the ?10m from the player sales hasn't been used too. Yes, the strategy off the field seems to be speculate to accumulate. Hopefully they have done their sums. I wonder which banks are going to lend the money to Hearts? Ukio Bankas surely doesn't have enough size - and how much would other banks charge at this point in the property cycle? It will be an absolutely enormous amount of debt for the football club to bear. Link to comment Share on other sites More sharing options...
Ryan Gosling Posted January 20, 2008 Share Posted January 20, 2008 Why did you think we had spent ?10m on players ? I meant in general, it's just sort of sitting there waiting to be used. Link to comment Share on other sites More sharing options...
Dazo Posted January 20, 2008 Share Posted January 20, 2008 I meant in general, it's just sort of sitting there waiting to be used. I doubt it to be honest, i would rather it just knocked the debt down by ?10m. I mean can we honestly afford to use it ? Link to comment Share on other sites More sharing options...
Drylaw Hearts Posted January 20, 2008 Share Posted January 20, 2008 I meant in general, it's just sort of sitting there waiting to be used. Has it not been used to reduce our overdraft ? Or does that not count ? Link to comment Share on other sites More sharing options...
Coco Posted January 20, 2008 Share Posted January 20, 2008 I have only read the OP, so to be honest it is hardly a strategy to reduce the debt. However, 10-15 years time to reduce the debt. Mmm intresting. So basically as far as I can tell a new stadium will bring in circa 2.5million a year extra revenue. However, at the moment we are probably losing circa 5 million a year. Therefore the debt would increase. Not convinced the revenue from spin of activities will be that great, though time will tell. Its not the first time that sort of thing has been tried at Hearts and it wasn't succesful last time. Anyway without seeing the sums, it difficult to comment. However, the fact that new stand will some how take away all our financial problems I don't buy into. Its needs a lot more than that, mainly a succesful team on the park. Whether Vlad can deliver that time will tell. However, I don't think unless we are challenging regulary we will fill a circa 25k stadium week in week out. It is possible that the cost cuts on the playing staff will continue and bite further ... though this might mean that the stand is not filled Virtuous circle of full expanded stand, success in Cups and the League, more merchandising sold, more TV revenue, regular European games, more hospitality sold etc feeding on itself appears to be the intention. It doesn't seem to be very often that this situation actually happens in practice in Scottish football though. Link to comment Share on other sites More sharing options...
Mr Romanov Saviour of HMFC Posted January 20, 2008 Share Posted January 20, 2008 I'm delighted they seem to have a plan to do this. Good stuff. Link to comment Share on other sites More sharing options...
Gibbo Posted January 20, 2008 Share Posted January 20, 2008 The Gordon fee cannot be included as these accounts are to 31/7/07 & he left in early August. The purchase of Nade will also be omitted as he arrived in late August. Link to comment Share on other sites More sharing options...
marshallschunkychicken Posted January 20, 2008 Share Posted January 20, 2008 We didn't go into admin on the 18th, or was it the 19th, 22nd? HOBO MUPPETS. According to some comments on the match reports online in the Scotland on Sunday, it's now going to happen this Thursday. Expect more of this banal tripe every week ad infinitum.... Link to comment Share on other sites More sharing options...
blairdin Posted January 20, 2008 Share Posted January 20, 2008 TBH, the speculate to accumulate thing has been tried before. Feck that was what CPR tried and it failed miserably. Can Vlad deliver success on the park. Not sure. I personally don't think there are enough revenue streams in Scottish football, for this strategy to be succesfull. Though in fairness as soon as the debt went about 25 million or whatever or assett value is, might as well, run up huge amount of debts in for a penny and all that! To be fair Lord BJ, I think it is accepted that the revenue strings in football to make the speculate to accumulate thing work just don't exist. Renting out office space. Hotel rooms. Conferencing facilities - not just for corporate or business events, but festival shows etc. Restaurants. Not to mention whatever the going rate for a newbuild one or two bedroom flat (no idea how many of them are going to be built as part of the development). I'm willing to give Vlad and his bunch the benefit if the doubt. They are businessmen here to make money, so they can't afford for this ambitious plan to not work. At least we now know there is a plan of sorts there....I'm happy with that. Link to comment Share on other sites More sharing options...
Sherlock Posted January 20, 2008 Share Posted January 20, 2008 TBH this week has been the best week as a Heart supporter for a long time. Beat the Vermin Stand App in Q & A - only words but I felt more 'relaxed' about things. We didn't go into admin on the 18th, or was it the 19th, 22nd? HOBO MUPPETS. Exactly. Link to comment Share on other sites More sharing options...
Ivan Drago Posted January 20, 2008 Share Posted January 20, 2008 TBH, the speculate to accumulate thing has been tried before. Feck that was what CPR tried and it failed miserably. Can Vlad deliver success on the park. Not sure. I personally don't think there are enough revenue streams in Scottish football, for this strategy to be succesfull. Though in fairness as soon as the debt went about 25 million or whatever or assett value is, might as well, run up huge amount of debts in for a penny and all that! to be fair,Pedro did say that we need to be succesful on the park as well. Link to comment Share on other sites More sharing options...
Spellczech Posted January 20, 2008 Share Posted January 20, 2008 Simple truth is that as Hearts currently stand, if we were successful on the pitch ATM we would be incapable of maximising the potential revenues to be gained from such success. Corporate facilities are very important and can you imagine what a 23K full Tynecastle would be like for atmosphere?! Ditto the new shops. Build the infrastructure then grow, it?s the only sensible way forward. Link to comment Share on other sites More sharing options...
Francis Albert Posted January 21, 2008 Share Posted January 21, 2008 As for debt free in 15-20 years Some plan that is when 5 years are seen as throwaway I have no idea whether there is a plan that will eliminate the debt but I know that to get the date it might be achieved to within a five year window would be financial planning of the first order. Link to comment Share on other sites More sharing options...
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